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UK EMI/PI Licenses: FCA Authorisation Conditions, Fees and the Application Process
Post-Brexit, e-money and payments business in the UK needs FCA authorisation: EUR 350,000 initial capital for an authorised EMI, fees up to GBP 5,640, 3-month review.
- Jurisdiction
- United Kingdom
- Regulator
- Financial Conduct Authority (FCA)
- Legal basis
- Electronic Money Regulations 2011 + Payment Services Regulations 2017
- Verified
- 2026-09-18
An Independent Regime After Brexit
The UK's e-money and payments regime follows the EU framework (the EMRs 2011 transposed EMD2, the PSRs 2017 transposed PSD2), but since Brexit the two systems no longer interoperate: an EU EMI can no longer passport into the UK, and a UK license does not cover the EEA. Firms serving both markets need two licenses, which is why so many fintechs run a dual-entity structure of Lithuania plus London.
The UK regime has two routes: authorised EMI/PI status is the full license; small EMI/PI status is a simplified registration with a lower bar but scale limits. A small EMI's outstanding electronic money must not exceed EUR 5 million, and some business activities are unavailable. Startups can begin with small registration and upgrade to authorised status before hitting the caps.
Capital and Application Conditions
Initial capital is EUR 350,000 for an authorised EMI, and EUR 20,000 to 125,000 across three tiers for an authorised PI depending on the services (the regulations retain euro denominations); small registrations have no or minimal initial capital requirements. Common conditions include a UK entity with genuine operations, governance and risk management arrangements, safeguarding of customer funds, AML registration and controls, and fit-and-proper reviews of management.
Pay particular attention to the safeguarding reform: the FCA's new client asset safeguarding rules apply from 7 May 2026 and impose stricter requirements on segregated account operation, reconciliation frequency and audits. Applications filed now should design their safeguarding arrangements to the new rules from the start.
Process, Fees and Deadlines
Applications are submitted through the FCA's Connect online system, and the review only formally starts once the fee is paid. Official application fees are charged by category: small PI, small EMI and RAISP fall under Category 3 at GBP 1,130; an authorised PI falls under Category 4 (GBP 2,820) or Category 5 (GBP 5,640) depending on the business; an authorised EMI is Category 5 at GBP 5,640. Statutory deadlines: a decision within 3 months of receiving a complete application, and up to 12 months for an incomplete one. Filing a complete application the first time directly determines which timeline you are on.
Approved firms are entered on the FCA's Financial Services Register, where the public can check authorisation status and permissions free of charge.
Official portals and sources
- FCA guidance on applying as an e-money or payment institution (official portal)fca.org.uk
- FCA Financial Services Register (license lookup)register.fca.org.uk
All links above point to official regulator or standards body sites, verified on 2026-09-18.
FAQ
- Can an EU EMI license still be used in the UK?
- No. The Brexit transitional arrangements have ended, and serving UK customers requires separate FCA authorisation or registration. Likewise, a UK license does not give access to the EEA market.
- What are the UK EMI application fee and timeline?
- The authorised EMI application fee is GBP 5,640 (Category 5); a small EMI is GBP 1,130 (Category 3). Statutory deadlines are 3 months for a complete application and up to 12 months for an incomplete one, with the clock starting only after the fee is paid.
- How do I choose between small EMI and authorised EMI?
- Small EMI registration is faster, cheaper and has no EUR 350,000 capital requirement, but outstanding electronic money must not exceed EUR 5 million and the business scope is restricted. If you expect to exceed the caps, applying for authorised status directly saves time.
Related entries
EMI (electronic money institution) topic pageBrowse licensed institutions in the UK
This site is an information aggregator, not a regulator, and this article is not legal advice. License requirements, fees and timelines change as regulation evolves. Before applying, rely on the regulator's official publications and consult licensed counsel in the relevant jurisdiction.