Financial license or e-wallet license is a kind of authorization given to firms who wish to have an approved regulatory licenses. Financial Conduct Authority (FCA) are vested with the power to approve licensing application. Without the presence of a legit FCA approval, no financial company or any organization can carry out any financial activities and provide credit for customers.
Regulated financial activities As specified by the FCA, regulated financial activities include: investment dealings, either buying or selling; investment deals arrangement; investment management; accepting of deposits; asset administration and safekeeping; investment advise; dealings with bonds, government bonds, debentures, loans, etc; insurance contracts dealings, and many other things.
While consumer credit include; lending of money; credit sales; collective debts; issuing credit cards; giving advise on debt and credit problems;higher purchase terms and conditions offer; arrangement of credit to clients, etc.
A financial company without the financial license or e-wallet license cannot operate or be in charge of consumer finances. The fact that the finance industry is such a very sensitive industry, it calls for serious rules and regulations. This is why a financial licensing is important and considering the kind of people that works in the industry. A financial license is one of the several requirements a state or a country made compulsory for every financial provider operating in the state or country.
There are different types of financial profession and each of them may require a different type of license. So, it is important to apply for the right financial license or e-wallet license that suit the financial service you provide. Financial providers are also required to write and pass one or more exams before they can be authorized. This is to test their financial knowledge.
With a financial license, you agree t obey every rues and regulations guiding the profession and not violate any single one of them nor put your clients at loss. You agree to render an unbiased service and not to act unjustly with the funds you are made to protect.
More so, any violation of the rules will result in punishment. Depending on how serious the offense is, the violator ma be charge to court, pay a fine, suffer restrictions or cancellation of the license. A financial provider must abide by every rules and be of good conduct.
Financial license enables financial providers to conduct financial services o customers. Thus, FCA licensing is very important for financial companies.
Ed Haem is a serious writer with the wide access of the financial industry and online banking software. The author has written quite a number of articles on the financial industry and internet banking system.