MEMA Scope · Assessment
Do agents of payment institutions need FCA authorisation?
A business offers payment services, such as money transfer, as an agent of an authorised payment institution that takes responsibility for its activities. Review the initial view below and answer a few questions to refine it.
- Personalised to your business
- FCA rule references
- Follow-up questions available
Potential regulated activity identified
You may be able to act as a registered payment agent
Agents are not authorised themselves, but their principal must register them on the Financial Services Register before they provide payment services.
Route to consider: Registered agent of an authorised or registered payment institution, or direct authorisation
Why this was flagged
- 1Providing payment services is regulated whether you do it in your own right or for a principal.
- 2Under the Payment Services Regulations an agent is not an FSMA appointed representative: the authorised or registered payment institution (the principal) registers you on the Financial Services Register, and you must be registered before you provide payment services.
Questions still to resolve
Answer to refine the view. The result updates as you go.
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Is your principal an FCA-authorised or registered payment institution that will register you as its agent?
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Will you present the service under your own brand, with customers contracting with you rather than the principal?
Regulatory basis to examine
Your next steps
- 1Ask the principal to confirm it will register you before you begin
- 2Review the agency agreement for oversight, branding and funds flow
- 3Prepare AML controls and staff training
- 4Check whether any activity falls outside the principal’s permission
Where applications for this model most often fall short
- A signed agency agreement that sets responsibilities
- Evidence of principal oversight arrangements
- AML training records for staff
This is an initial indication from published FCA material, not an FCA determination or legal advice.
If authorisation is required, check the firm’s governance, policies, resources and application preparedness.
MEMA Scope gives an initial view from published FCA material. It is not legal advice or an FCA determination. Automatic matching and typed questions use AI only to choose a profile and to answer from vetted guidance; the assessment itself is never written by AI.
About this business model
A business offers payment services, such as money transfer, as an agent of an authorised payment institution that takes responsibility for its activities.
Agents are not authorised themselves, but their principal must register them on the Financial Services Register before they provide payment services.
This page gives an initial view from published FCA and legislation sources. It is not an FCA determination or legal advice. Not your business model? Describe your business in MEMA Scope.
Agent of an authorised payment institution: frequently asked questions
Does a payment agent need FCA authorisation?
Agents are not authorised in their own right if they are registered by an authorised or registered principal, but they must be on the Financial Services Register before providing payment services.
Who is responsible for a payment agent?
The principal remains responsible for acts and omissions of its agents, so it must have systems and controls to oversee them.
What could change the answer for agents of payment institutions?
Agents are not authorised themselves, but their principal must register them on the Financial Services Register before they provide payment services. It can change depending on the answers to questions such as: Is your principal an FCA-authorised or registered payment institution that will register you as its agent? Will you present the service under your own brand, with customers contracting with you rather than the principal?
Which FCA rules should agents of payment institutions look at first?
Start with: Perimeter guidance on agents; FCA: payment institution applicants and agents; Payment services. This is an initial view from published FCA material, not an FCA determination.
What are the first steps for agents of payment institutions?
Ask the principal to confirm it will register you before you begin. Review the agency agreement for oversight, branding and funds flow. Prepare AML controls and staff training. Check whether any activity falls outside the principal’s permission.
Businesses we check
MEMA Scope covers 32 common business models. Each page explains whether that kind of business may need FCA authorisation, the rules to look at and the routes to consider.
Consumer credit
- Do car dealers offering finance need FCA authorisation?
- Do motor finance brokers need FCA authorisation?
- Do retailers offering buy now pay later need FCA authorisation?
- Do consumer lenders need FCA authorisation?
- Do debt collectors and debt administrators need FCA authorisation?
- Do debt management and debt advice firms need FCA authorisation?
- Do credit lead generators and comparison sites need FCA authorisation?
- Do rent-to-own and vehicle leasing providers need FCA authorisation?
- Do credit brokers introducing customers to lenders need FCA authorisation?
Payments and e-money
- Do payments apps and payment processors need FCA authorisation?
- Do small payment institutions need FCA authorisation?
- Do e-money issuers and digital wallets need FCA authorisation?
- Do open banking providers need FCA authorisation?
- Do money transfer and remittance businesses need FCA authorisation?
- Do marketplaces handling payments need FCA authorisation?
Insurance
Mortgages
Investments and wealth
- Do financial advisers need FCA authorisation?
- Do discretionary investment managers need FCA authorisation?
- Do investment platforms and wealth-tech firms need FCA authorisation?
- Do crowdfunding and peer-to-peer lending platforms need FCA authorisation?
- Do corporate finance boutiques need FCA authorisation?
Other regulated activities
- Do claims management companies need FCA authorisation?
- Do funeral plan providers and sellers need FCA authorisation?
- Do introducers and referral partners need FCA authorisation?
- Do international firms entering the UK need FCA authorisation?
- Do accountants and solicitors giving financial advice need FCA authorisation?
Want a consultant to look at your facts?
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