Fintech company, Revolut, a company that’s been at the forefront of financial innovation, has just secured a UK banking licence, three years after submitting their application. Previously operating as an e-money institution, this new status brings significant changes. The new classification will mean that Revolut accounts are now additionally regulated by the Prudential Regulation Authority, which has potential benefits for those wishing to rely on Revolut for various UK immigration applications.
Sponsor Licence Application
Revolut’s banking licence issuance is expected to be particularly useful for start-ups looking to secure a sponsor licence. Applications for sponsor licences require several corporate documents evidencing an organisation’s operating footprint in the UK. Start-ups, compared to more established organisations, disproportionately use Revolut’s banking services and are often limited in what evidence of they have available to evidence an operating footprint in the UK. For start-up companies, establishing and evidencing this footprint can take time, and this can include arranging a corporate bank account in the UK. With this change, many organisations will find an easier – and swifter – path may now exist to being issued a sponsor licence.
Family Applications – Bank Accounts
Whilst the most significant benefit of this development is likely to be seen with sponsor licence applications, the financial requirements for family route visa applications for the UK also require evidence of finances to be held by organisations that are both FCA and Prudential Regulation Authority regulated. Navigating the UK Family Visa requirements can be challenging, as we explored in-depth in our recent article on Cryptocurrency.
The issuance of a banking licence to Revolut should open the availability for finances held in Revolut accounts to be used more widely across Family Route applications. This will benefit British nationals and those with settled status wishing to bring their overseas based family members to the UK, alongside a welcome update announced by the new Labour government to postpone salary threshold increases for this same route.
Family Applications – Salary Thresholds
In April this year, the previous Government increased the minimum income threshold requirement under this route from £18,600 to £29,000 per year, as part of their drive to reduce net migration. Originally their proposal had been to more than double the threshold, to £38,700, but after very vocal and widespread opposition the government changed this to a staged approach, with the initial increase to £29,000 in April, and a planned further increase to £34,500 later this year and finally to £38,700 in 2025.
The Home Secretary, Yvette Cooper, has now announced that the threshold will be kept at its current level of £29,000 for the time being, until a deep review of the policy changes has been carried out by the Migration Advisory Committee (MAC).
These developments are welcome news, particularly for families with lower income levels, who may be unable to meet the higher threshold, although there will be uncertainty until the report is complete and we know whether this is a temporary reprieve or something more long term.
Whether you’re a start-up seeking a sponsor licence or a family aiming to reunite in the UK, these developments mark a significant step forward.
Authors
Jahanara Begum, Immigration Solicitor
Ahmad Namazie, Immigration Associate