Account information service provider (AISP) is a financial entity with a valid AISP license. Such a license allows providing consented access to customer’s financial data from other financial institutions. AISP license holder acts as an intermediary between customers and various financial organizations. AISP can seek authorization for the conduction of payment services and acquire the status of payment initiation service provider (PISP).
How to acquire an AISP license?
A financial entity must register with a national authority supervising AISPs to become AISP. Successful registration requires presenting a complete and detailed description of the planned business model and a clear outlining of robust risk management procedures. Moreover, there is a requirement to have indemnity insurance or another appropriate guarantee, which is evaluated based on AISP’s risk profile and type and size of expected activity.
Documents required for the registration as an AISP typically includes the following:
- Business plan, description of financial model and programme of operations;
- Risk matrix and management, anti-money laundering, countering the financing of terrorism and financial crime prevention policies;
- Data collection and protection policies;
- Incident reporting, complaints handling and internal audit policies;
- Terms and conditions.
How much does the AISP license cost?
The final cost of acquiring an AISP license depends on the country of operation and typically consists of three parts:
- Application price. It has to be paid when presenting the application for the AISP license to the local Financial Supervisory Authority (FCA). It is vital to notice that in case of non-approval, this fee is not reimbursed.
- Ongoing fees. Once the AISP license is granted, the license holder will need to pay an annual fee for the operating costs of the FCA and other regulatory institutions such as the Financial Ombudsman Service. The exact amount of this fee is calculated according to the gross income of the AISP license holder.
- Insurance fee. Indemnity insurance will help with unfortunate occasions when a third party suffered a loss due to professional negligence or other reasons. Typically this fee will cost approximately 0,1 % of the gross income of the AISP license holder.
Suppose an AISP license holder wants to access and collect customer’s financial data and to become PISP and provide payments services (such as payment initiation). In that case, it will have to be authorized by relevant regulatory bodies. This process will take longer and be more complex and costly. It is highly recommended to seek expert professional advice before beginning the authorization procedure to minimize its cost and probability of mistakes.
Article prepared by Nordigen.com
