Date: 23 November, 2023
Klarna Bank AB has secured regulatory approval to provide credit and payment products in the UK, ensuring its continued operations in the market. The recent authorization, granted by the Financial Conduct Authority (FCA), comes as the temporary approval Klarna received post-Brexit was set to expire in just five weeks, as stated in an official announcement. In response to this, Klarna established Klarna Financial Services UK, a UK-based entity, to facilitate the offering of all its consumer-facing products within the country.
Key Points:
- The approval granted does not extend to buy-now-pay-later loans, according to Klarna.
- The company asserts that this authorization establishes a solid regulatory foundation, ensuring the firm’s compliance and stability in the regulatory landscape.
- Klarna Bank AB secures regulatory approval from the Financial Conduct Authority (FCA) to offer credit and payment products in the UK.
- The authorization is crucial for the continuation of Klarna’s operations in the UK, replacing the temporary approval received post-Brexit, which was set to expire in five weeks.
- Klarna responds by establishing Klarna Financial Services UK, a dedicated UK-based entity for offering consumer-facing products in the country.
- Notably, the new authorization does not cover Klarna’s popular buy-now-pay-later loans.
- The FCA’s decision provides regulatory clarity, ensuring a smooth transition from the temporary post-Brexit approval.
- Klarna’s commitment to the UK market is emphasized through the establishment of Klarna Financial Services UK, showcasing dedication to providing a range of credit and payment products to consumers.
While Klarna’s new authorization allows it to maintain its presence in the UK market, it notably excludes the company’s popular buy-now-pay-later loans. The FCA’s decision provides regulatory clarity for Klarna’s operations in the UK, ensuring a seamless transition from the temporary approval obtained post-Brexit. The establishment of Klarna Financial Services UK underscores the company’s commitment to delivering a range of credit and payment products to consumers in the UK market.
References:
https://www.bloomberg.com/news/articles/2023-11-23/klarna-wins-regulatory-approval-to-offer-credit-payments-in-uk