Estrella facilitates acquisitions of UK Authorised Electronic Money Institutions (AEMI) — FCA-licensed companies equivalent to EU EMIs, with full electronic money issuance and PSD2 payment services scope under the UK’s post-Brexit regulatory framework.
In the United Kingdom, an “Authorised Electronic Money Institution (AEMI)” is the FCA’s designation for what EU member states call an “Electronic Money Institution (EMI)”. Both terms refer to the same regulatory category — full-scope authorisation to issue electronic money (e-wallets, prepaid cards, digital balances) and provide associated payment services.
UK AEMIs are regulated under the Electronic Money Regulations 2011 and the Payment Services Regulations 2017, which implement (with post-Brexit modifications) the EU’s Electronic Money Directive (EMD2) and the revised Payment Services Directive (PSD2). The substantive regulatory regime is essentially identical to EU EMI authorisation.
Following Brexit, UK AEMIs no longer have automatic EU passporting rights. However, UK authorisation remains highly valuable for serving the UK domestic market — one of Europe’s largest and most sophisticated payment markets — and for international operators using a UK entity to access UK consumers and businesses.
The FCA’s authorisation process for a new AEMI is rigorous — typically 9–18 months from initial application through approval, with extensive documentation requirements covering governance, capital, business model, AML/CFT compliance, IT and operational risk frameworks, capital and own-funds calculations, and detailed safeguarding arrangements for client funds.
Acquiring an existing FCA-authorised AEMI provides immediate operational capability — the licence is already in place, the safeguarding arrangements are established, the FCA reporting is current, and in many cases banking relationships and payment scheme memberships (Visa, Mastercard, Faster Payments, Bacs) are also active.
UK AEMIs are particularly valuable for international fintech operators who want UK presence without the time and uncertainty of a fresh FCA application. The acquisition route also avoids the risk of FCA refusal — an outcome that is not uncommon for inexperienced applicants and can permanently damage a corporate group’s ability to obtain UK authorisation.
UK AEMIs are regulated under the Electronic Money Regulations 2011 and the Payment Services Regulations 2017, supervised by the Financial Conduct Authority (FCA). The framework implements (with post-Brexit modifications) the EU’s EMD2 and PSD2.
Key regulatory obligations include initial capital of £350,000 (with ongoing own-funds based on outstanding e-money issuance and payment volumes), client fund safeguarding via segregated accounts at qualifying credit institutions or qualifying insurance, comprehensive AML/CFT compliance under the Money Laundering Regulations 2017, conduct of business rules under the FCA’s Banking Conduct of Business Sourcebook (BCOBS) where applicable, reporting requirements including REP-CRIM, FIN071, FSA042 and other specific PSR returns, complaint handling and Financial Ombudsman Service (FOS) jurisdiction, and operational and security risk management aligned with FCA expectations and PSD2 RTS on strong customer authentication (SCA).
The FCA conducts ongoing supervision through periodic supervisory reviews, thematic reviews of the e-money and payments sectors, and individual firm assessments. UK AEMIs must also comply with the Senior Managers and Certification Regime (SM&CR) for governance and individual accountability.
Estrella maintains relationships with FCA-authorised UK AEMIs across operational maturity levels. Available opportunities include established AEMIs with active customer books and proven banking relationships, mid-stage AEMIs with strong infrastructure, and clean AEMIs with full authorisation suitable for new branding under buyer ownership.
Each acquisition is subject to comprehensive due diligence: FCA register status and any historical supervisory matters, safeguarding arrangements and reconciliation history, capital and own-funds compliance, AML/CFT framework and any historical breaches, FCA correspondence and any past supervisory matters, banking and payment scheme relationships, and corporate, tax, and financial history. The acquisition process requires FCA Section 178 change-of-control notification — Estrella manages this with experienced UK regulatory counsel.
For current availability and pricing, please contact our acquisitions team.
In the UK, “AEMI” stands for “Authorised Electronic Money Institution” — the FCA’s designation for a fully licensed e-money institution under the Electronic Money Regulations 2011. This is the UK terminology equivalent to “Electronic Money Institution (EMI)” used by EU member states. Both refer to the same regulatory category under EMD2 (with post-Brexit UK modifications).
UK AEMI acquisitions typically take 4–6 months. The corporate transfer can be completed in weeks, but FCA Section 178 change-of-control approval is the gating item — typically 60 working days from a complete notification, though the FCA has up to 60 working days plus extensions.
No. Following Brexit, UK AEMIs no longer have automatic passporting rights into EU/EEA member states. UK AEMIs may serve UK customers and may serve non-EU customers globally, but EU-resident customers generally require an EU-licensed EMI. Some operators address this by holding parallel UK AEMI and EU EMI licences.
Yes, but the FCA requires fit-and-proper assessments of all “controllers” (persons holding 10% or more of shares or voting rights, directly or through structures). Non-UK individuals and entities may be controllers subject to satisfactory FCA assessment. The FCA is particularly attentive to source of funds, beneficial ownership transparency, and any adverse regulatory or legal history globally.
UK AEMIs are among the most valuable e-money licences globally, reflecting both market size and regulatory rigour. Pricing varies based on capital position, banking relationships, payment scheme memberships, operational history, and any active customer book. Clean entities with full e-money scope command significant premiums.
Contact Estrella to discuss available FCA-authorised UK e-money institutions. Our team provides comprehensive support including specialist UK regulatory counsel for the FCA Section 178 change-of-control process.
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