Buying
10 min read2024-01-10Buying an EMI Licence in the UK: Complete 2024 Guide
Veritas Connect Team
M&A Regulatory Specialists
Acquiring an Electronic Money Institution licence can fast-track your entry into UK payments. We cover valuations, due diligence, and regulatory transfer timelines.
Obtaining a fresh EMI licence from the FCA takes 12-18 months. Acquiring an existing one can reduce this to 3-6 months. Here's the strategic buyer's guide.
Why Acquire vs Apply?
- Speed to market: 3-6 months vs 12-18 months
- Established compliance infrastructure
- Existing banking relationships (increasingly valuable)
- Trained staff and operational procedures
Valuation Factors
EMI values range from £500k for dormant shells to £5m+ for active businesses. Key drivers include:
- Safeguarding bank relationships
- Active client base and transaction volumes
- Additional permissions (e.g., PSD2 account information services)
- Clean compliance record
Due Diligence Priorities
Focus on FCA correspondence history, capital adequacy, and any current or past enforcement actions. Client money handling procedures are particularly scrutinised.