The UK Investment Environment
The UK is the world's sixth-largest economy. As a long-established capitalist powerhouse, UK corporate tax has always been relatively low. Due to its lower operating costs, the UK has long been one of the most popular destinations for Chinese businesses expanding overseas. London, as one of the world's three major financial centres, offers robust fintech growth and investment prospects. There are currently more than 1,600 fintech companies in the UK, the majority based in London.
What is Electronic Money?
"Electronic money" means "monetary value stored electronically (including magnetically)". It is represented by a claim against the issuer, issued upon receipt of funds, intended for use in payment transactions, and accepted by persons other than the electronic money issuer.
What is an EMI?
An Electronic Money Institution (EMI) makes the same promise to customers as a regular bank: clients can redeem or transfer funds on demand. However, unlike a bank, an EMI must segregate client funds from its own — for every £10 of electronic money issued, the EMI must hold £10 in safeguarded funds. EMIs may extend small-scale credit only from their own funds and only in connection with payment transactions.
What Services Can an EMI Provide?
- Issue electronic money (e.g. prepaid cards, e-wallets)
- Cash deposits and withdrawals from payment accounts
- Execute payment transactions including direct debits, credit transfers, card payments
- Issue payment instruments and acquire payment transactions
- Money remittance
- Payment initiation services
- Account information services
Licence Requirements
- Minimum initial capital: €350,000
- Client funds protected via independent safeguarding account or insurance policy
- Management must hold good repute and relevant qualifications approved by the FCA
- Approval timeline: FCA targets 3 months; in practice approximately 9–12 months
Required Documents
- Company identification information
- Operating programme
- Business plan and financial projections
- Organisational structure
- Initial capital evidence (minimum plus 3-year projections)
- Client fund safeguarding arrangements
- Compliance, governance and internal controls
- AML/CTF policy
- Security policy and incident response procedures
- Business continuity plan