U.K.’s FCA refuses application of Mintos

The FCA, also known as the Financial Conduct Authority, is the regulatory body for peer to peer lending platforms and other financial services in the United Kingdom. On December 7 2018, the FCA has refused the application of Mintos. As explained below, Martins Sulte wanted to create a separate entity for loan originators in the U.K. to have their loans funded locally. The final notice can be read here.

Summary of the denial:

  • (29-33, 35-38, 40) Fear that business model won’t be applied adequately to comply with U.K. regulation?
  • (41-44) Plans not specific.
  • (46-48) FCA is unsatisfied with Mintos’ interpretation of U.K. regulation.
  • (49-50) Minimal funding requirements of 50k GBP not met.
  • (51-53) HQ is not based in the U.K.

The assessment of the FCA on the application will not get in the way of the e-money license of Mintos to issue IBAN accounts hopefully later in 2019. No details have been given yet on what products will be offered.

We are hoping to see the following:

  • Metal cards
  • Free MasterCard or Visa
  • Joint accounts
  • Multi-currency (encourage loan originators to offer loans in local currencies where loans are originated).

The future still remains unclear what Brexit will mean for U.K. investors. May we remind you, to diversify your investments on transparent platforms such as Mintos.

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