Authorised E-Money Institution (AEMI) application – A guide Part I

In the application to be AEMI, the FCA does not prescribe the format of information that must be given to them. However, they will need to have enough information to be satisfied that the applicant meets the relevant conditions for authorisation.

Applicant must provide information and documentation which formed the business plan to explain how the applicant intends to carry out its business and programme of operations. These should provide enough details to show that the proposal has been carefully thought out and that the adequacy of financial and non-financial resources has been considered.

The business plan should include the marketing plan which analyse the applicant firm’s competitive position in the e-money market and, if applicable, payment market segment concerned with a description of e-money holders and payment service users, marketing materials and distribution channels.

Where available, provide certified annual accounts of the previous three years. If the applicant firm has not yet produced annual accounts, a summary of the financial situation. Additionally, a forecast budget calculation or projected financial statement for the first three financial years upon authorisation that demonstrates that the applicant firm is able to employ appropriate and proportionate systems, resources and procedures that allow the applicant firm to operate soundly.

Applicants wishing to become authorised EMIs that intend to provide unrelated payment services are required to submit a separate business plan for those activities.

Provide the description of the applicant’s structural organisation, which is the plan for how the work of the business will be organised including through any branches, agents and distributors, together with a list of all natural or legal persons that have close links with the applicant firm, indicating their identity and the nature of those links.

Confirm the applicant will hold initial capital of at least €350,000 immediately before authorisation by attaching evidence of your initial capital by way of an audited account statement or public register certifying the amount of capital of the applicant firm.

Provide the description of measures taken to safeguard the relevant funds of the service users which will include description of the administration and reconciliation process for funds of e-money users. (and, if applicable, payment service users).

Provide the description of the applicant’s governance arrangements and internal control mechanisms which should cover a mapping of the risks identified, controls carry out periodically with the human resources allocated, the composition of the management body and, if applicable, of any other oversight body or committee and a wind-down plan.

Provide the description of the applicant firm’s procedures in place to monitor, handle and follow up on security incidents including fraud and/or claim management on security-related customer complaints.

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