The UK Financial Conduct Authority (FCA) has cancelled Samsky Pay Ltd’s registration as a Small Payment Institution.

The cancellation is effective February 20, 2025.

On 14 June 2021, the firm was registered by the Authority as an SPI under the PSRs to provide money remittance services.

On 29 June 2023, the Authority issued a first supervisory notice (FSN) to the Firm. Under the FSN, the firm’s registration as a SPI was varied to:

• Remove the money remittance payment service which the firm had been permitted to provide under its registration; and
• Impose a number of requirements.

Under the requirements, Samsky Pay was required to, amongst other things:

1. by 5:00pm on 3 July 2023, remove, or where this is not practicable, use its best endeavors to secure the removal of, any advertising and financial promotions it currently has live, in whatever form they may take. This included, but was not limited to, the Firm’s website and mobile phone app, videos on social media platforms; and
2. not issue or publish any advertising or financial promotions in relation to payment services, money service business, regulated activities, or electronic money. This included, but was not limited to advertising or publication on the website, and social media channels; and
3. provide written confirmation to the Authority that it had complied with those requirements by 5:00pm on 3 July 2023, together with a list of all advertising and The variation of the Firm’s registration was imposed because that the Authority had serious concerns that the Firm had conducted unregulated investment activities with certain customers, and that the Firm was offering payment and other services for which it was not authorised.

Between 29 June 2023 and 19 July 2023, the Firm made representations to the Authority regarding the FSN. The FCA considered those representations inadequate because, amongst other things, they failed to properly address the substantive issues set out in the FSN and failed to demonstrate that the consumer complaints had been dealt with by the firm in a suitable manner or that funds had been returned. The Authority concluded that the Requirements imposed by the FSA should not be rescinded.

Therefore, on 26 July 2023 a second supervisory notice (SSN) was issued to Samsky Pay. This set out that the removal of the Firm’s money remittance payment service and the imposition of the requirements detailed in the FSN had not been rescinded.

On 11 September 2023, the firm responded to the Authority advising that it had “removed all these services on the website for which I do not have permission” and “removed all the contents and shut down website and all our social media platforms.”

The Firm also stated that there is “a proper policy to deal with customer complaints” and that the issues in connection to the investment was a “misunderstanding” as the monies were a loan, not an investment, which was typed on the Firms letter headed paper.

The Authority responded on 22 September 2023 advising that, at that time, the Firm appeared to be in breach of one of the requirements imposed by the FSN, and, that the explanations provided by the Firm in response to the issues that led the Authority imposing the FSN were not accepted.

The Firm was asked as a matter of urgency to confirm that it had adhered with the requirements imposed and also asked to explain any steps taken to reimburse customers. No response was received, and the matter was subsequently referred to Enforcement.

On 19 July 2024 Enforcement issued a Letter Before Action to the Firm which asked the Firm to respond to the concerns set out and also provided an opportunity to voluntarily cancel its registration by 2 August 2024.

The Firm responded on 2 August 2024 referencing its previous representations of 11 September 2023, but offering no new information. Enforcement replied on 6 August 2024 confirming that the Firm’s representations of 11 September 2023 had not been accepted, and, advised that Enforcement would therefore proceed with its recommendation to cancel the Firm’s registration.

As a result, the FCA concluded there is evidence that the cancellation of Samsky Pay’s registration is desirable in order to protect the interests of consumers.