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Demonstrating that the new UK business has a bank account is a critical part of securing the sponsor licence, and for good reason. It is a really efficient way for the Home Office to satisfy itself that the applicant is a genuine business; and one that has successfully navigated the stringent checks undertaken by banks when taking on a new corporate customer.
But, and here’s where the key/common issue arises; opening a new corporate bank account in the UK can be time consuming. It sometimes takes several weeks from the point that the business starts the process with a bank. It’s true that the timescale varies from business to business and from bank to bank; but the overall picture is that it is the common preliminary step for obtaining a sponsor licence that is most likely to slow down the process quite significantly, particularly if it hasn’t already started by the time the business identifies its desire for a sponsor licence.
The arrival of Metrobank as the first new high street bank in the UK for over 100 years in 2010, marked the beginning of a shake-up in the UK banking and financial services sector.
This was followed around 2015, by the emergence of what became known as digital-only or “Neo” banks. I recall many clients told us how impressed they had been with these new providers’ ability to provide super-fast account opening in a matter of one or two days, if not within hours. Many thought this would also mean a solution to the issue of bank account opening slowing down the acquisition of their all-important UK visa sponsor licence.
However, in many instances what these businesses had actually obtained was a money-transfer and/or exchange service and not a full bank account. That was a key distinction, because the Home Office requires a new (or new to the UK) business applying for a sponsor licence to have an account with a UK Bank or building society that is both:
(a) authorised and regulated by the Prudential Regulation Authority; and
(b) regulated by the Financial Conduct Authority.
So those money-transfer/exchange platforms (quick and useful as they were) do not meet the UK Visas and Immigration office’s requirement.
So, will Revolut becoming a fully regulated UK bank make a difference in this context and spell good news for those new businesses in need of a UK sponsor licence? Potentially yes, but the difference might vary from case to case and/or be more limited than some might expect.
The reason for this is that, in order to have and maintain their fully regulated status; UK banks and building societies have to carry a whole range of checks before opening a bank account for a corporate customer. This means that whilst it remains the case that some providers may be able to open an account for you more quickly than others: (a) it’s fair to assume that opening a fully regulated UK bank account will usually still take longer than opening a simple money-transfer/exchange service; and (b) the length of time it takes will continue to be influenced by factors such as the context and complexity of the business seeking to open the account.
So, Revolut joining the ranks of the fully regulated banks in the UK does mean that there is another new “challenger” bank to increase competition and potentially mean quicker account opening times from it, or indeed its competitors; bank account opening times will continue to vary from case to case, and that early engagement with a bank that is well-suited to your business will continue to pay dividends, when it comes to seeking a visa sponsor licence to bring your key hires to the UK.
Our experienced Business Immigration solicitors at DMH Stallard specialise in assisting businesses with obtaining, retaining, and getting maximum value from UK sponsor licensing. For more information please get in touch with one of our team today by email or call us on +44 (0)207 822 1636.
