Tuesday, June 5, 2018

Financial License, E-Wallet License: What Are The Benefits?

By Ed Haem


A financial license or e-wallet license is an authorization given to financial providers to conduct financial services to customers. The Financial Licensing Authority (FCA) is charged with the power to approve every financial licensing application. The approval of the FCA is very important as without it, a financial company cannot perform financial activities or provide consumer credit to clients.

What are regulated financial activities and Authorized Consumer Credit? As analyzed by the FCA, regulated financial activities include the following; investment dealings, buying or selling; investment deal arrangement; investment management; accepting of deposits; asset administration and safekeeping; investment advise; dealings with bonds, government bonds, debentures, loans, and so on: insurance contract dealings, and so on.

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.

As a financial provider, without a financial license or e-waller license, you will be unable to conduct business, manage finances on behalf of clients, and so on. The finance industry is a very complicated sector which needs strict regulations, thus, this is expected considering the high standard of people who work in the industry. Having a financial license is one of the numerous requirements a state has in place for the financial providers in the state or the country.

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.

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.

In addition, any violation of these rules may result to license cancellation, restrictions and so on. Offenders may also be taken to court or fined. It is better to obey the rules and provide a fair service to customers.

Thus, having a financial license gives financial service providers the right to operate and conduct financial services freely and fairly. FCA licensing is a must have for every finance professional.




About the Author:



No comments:

Post a Comment