UK ministers ask to meet Revolut amid reports it may be refused licence

theguardian.com:

Senior government ministers have asked to meet the bosses of Britain’s most valuable fintech firm, Revolut, amid reports that the company’s banking licence application may be refused by UK City regulators.

The Guardian understands that the stated intention of the meeting is to discuss the government’s growth agenda, but it comes amid a series of complaints from businesses including Revolut over regulatory hurdles that their bosses claim could drive firms abroad.

The move follows reports overnight that City regulators inside the Bank of England intend to reject the fintech firm’s application for a UK banking licence after Revolut’s auditor, BDO, raised concerns over its balance sheet.

BDO said in the company’s delayed 2021 annual report released in February that its auditors were unable to get a complete picture of some of Revolut’s revenue and as a result it, or other financial balances, could be “materially misstated”.

The meeting – which is likely to involve Treasury and business ministers – will take place in the next week or two, with Revolut expected to be represented by its chief executive, Nik Storonsky, and its chair, the Aberdeen Asset Management co-founder Martin Gilbert.

The government, Revolut and the Bank of England declined to comment.

Revolut is waiting for UK approval of its banking licence, more than two years after it lodged its application. Regulators have hada number of reputational issues to consider, with the fintech firm facing criticism for the late filing of accounts, EU regulatory breaches and its corporate culture.

While regulators could deny Revolut a licence, they could also choose to offer a restricted licence that would limit deposits or lending for about 12 months, in order to give the firm time