Payment Services

Over recent years the payment sector has developed rapidly, as we move towards a digital economy. The FCA has confirmed that this sector is a priority area and it will act swiftly where firms fail to meet regulatory requirements.

The FCA regulates payment services firms (such as authorised payment institutions (‘APIs’)) and electronic money institutions (‘EMIs’). There are similarities between both of these types of firms and the FCA’s guidance usually covers both together. The Payment Services Regulations (PSRs) and Electronic Money Regulations (EMRs) set out the requirements for when these firms that need to appoint auditors (see below). The requirements in these regulations are broadly similar.

A common misconception is that the UK company law requirements are also similar, in respect of statutory audits. These actually differ significantly between each type of entity. We have clarified these differences below.

Payment services firms (that are not EMIs)

Firms regulated under the PSRs are not automatically required, by UK company law, to have an audit. The usual size criteria applies (on a group-wide basis). This article linked provides a useful guide to the size criteria.

Even if the worldwide group is small and an audit would not normally be required, the owners of a firm may decide to request that the firm has its financial statements audited. This scenario is commonplace where a counterparty would like to see audited financial statements before doing business with a company.

There is no requirement for payment services firms to submit financial statements to the FCA. These will need to be submitted in accordance with the normal Companies House deadline. If these financial statements are audited, the PSRs stipulate that the auditor must communicate certain matters to the FCA.

Get in touch

For any questions about our services, please get in touch with one of our expert advisors.

Our locations

Global Map

View the locations and contact information for over 65 international offices.

Newsletter

Stay informed about all our latest updates and services, and sign up to our email newsletter.

Cookies are used on our site to help give you the best user experience possible and to provide a level of enhanced functionality. If you continue viewing the site without changing your settings, we will assume you are happy to receive all cookies. Your cookie settings can be changed at any time by using the guidelines in our cookie policy. You can also click on the information button for further details.