Financial License E-Wallet License: Why Are They Compulsory?

By Ed Haem


A financial or e-wallet license is an authorization provided for firms seeking to secure their regulatory licenses. The Financial Conduct Authority are in charge of licensing application and approval. Without the FCA regulation, no firms or financial company can conduct financial activities and make credit available to customers.

Financial Activities and Consumer Credit: What are they? According to the FCA, financial activities include the following: buying or selling of investment; investment deals arrangement; investment management; accepting of deposits; asset administration and safekeeping; investment advise; dealings with bonds, gen bonds, debentures, loans; insurance contract, etc.

Authorized consumer credit according to the FCA licensing include; lending money; selling on credit; collective debts; issuing credit cards; giving advise on debt and credit problems; offering higher purchase terms and conditions; arrangement of credit to consumers, etc.

A financial provider without an approved financial license will not be able to practice in the finance industry, nor manage finances for clients. Been a very sensitive industry, the finance industry is governed by serious regulations and this is quite likable with the kind of people in the industry. Thus, a financial license is one major credential that a state mad compulsory that financial providers must have.

However, financial profession varies and so does the financial license too. A financial provider must apply for the right licensing that matches the kind of financial services that is been rendered to the public. Every financial providers are compulsorily made to sit for qualifying exams which could be one or more. This is to test their financial knowledge and ascertain if they truly have the skills the industry requires.

Having a financial license or e-wallet license means that you are agreeing to hold true to the law guiding the profession and not go against any of it, nor put your client in loss and jeopardy. You are agreeing to provide fair services and not to take advantage of the money at your disposal or scam your clients.

However, anyone found guilty of any violation of the abiding laws will be stripe of the license. May be taken to court, fined, depending on how serious the offense is. Hence, it is good to be of high standard and hold true to the license one has.

An approved financial license is an authorization to conduct financial services to clients. Thus, FCA licensing is mad compulsory for every financial company.




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