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Revolut’s Product Approvals Face UK Regulatory Scrutiny

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Revolut’s Product Approvals Face UK Regulatory Scrutiny

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The Bank of England’s Prudential Regulation Authority (PRA) issued what is known as a section 166 earlier this year to investigate risks surrounding the speed of Revolut’s product launches, the Financial Times (FT) reported Tuesday (Oct. 27).

The report, citing sources familiar with the matter, said the order was made around the time Revolut obtained its long-awaited full banking license in March and is designed to test the strength of the FinTech’s internal systems.

As the FT notes, Revolut has amassed a customer base of more than 80 million in a little more than a decade, and is valued at $115 billion.

With a section 166, a company is required to appoint advisors to examine its systems and controls, the report added. Typically this process involves an investigation by accountants and lawyers who will suggest improvements where necessary. If the review uncovers failures, the company could face penalties or enforcement actions.

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Both Revolut and The Bank of England declined to comment when reached by PYMNTS.

The FT points out that Revolut’s rapid growth has involved a business model that covers things like cryptocurrency trading , subscription services and card payments, with CEO Nik Storonsky telling his team to act like “self-guided missiles” with little oversight to launch new products.


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