Regulatory Overview
- E-Money Institutions (EMIs):
- Regulated only by the Financial Conduct Authority (FCA) in the UK.
- Cannot engage in traditional banking activities such as lending or offering 0verdrafts.
Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
London WC1N 2EB
Slough Office: Herschel House,
58 Herschel Street, Slough SL1 1PG
London Office: 10 John Street,
London WC1N 2EB
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Feature | E-Money Institution | Fully Regulated Bank |
---|---|---|
Feature Lending | E-Money Institution Not allowed to lend money. | Fully Regulated Bank Allowed to lend money, but this carries risk (e.g., as seen with Silicon Valley Bank). |
Feature Deposits | E-Money Institution Holds client money securely but cannot use it for lending or investment | Fully Regulated Bank Can use deposits for lending or investment, increasing risk exposure. |
Feature Regulation | E-Money Institution FCA-regulated only | Fully Regulated Bank Dual-regulated by FCA and PRA. |
Feature Guarantees | E-Money Institution Funds held with EMIs are often backed by a Tier 1 lender (e.g., Barclays). | Fully Regulated Bank Funds held with EMIs are often backed by a Tier 1 lender (e.g., Barclays). |
Feature Revenue Model | E-Money Institution Primarily earns through fees (e.g., foreign exchange, transactions). | Fully Regulated Bank Earns revenue through lending and other financial products. |
Feature Visa Sponsorship | E-Money Institution Not accepted for UK sponsorship visas. | Fully Regulated Bank Required for UK sponsorship visas. |
The choice between an e-money institution and a fully regulated bank depends on your needs:
Understanding the strengths and weaknesses of both options ensure sure that you can make informed financial decisions tailored to your business.
To find your nearest office or get in touch with one of our specialist advisors to see how we can help your business, please go to our contact page.