Revolut has been caught in a fresh row with UK watchdogs after the fintech juggernaut failed to inform regulators of its chief executive shifting his residency to the United Arab Emirates.
Nik Storonsky, the boss of the London-headquartered digital bank, sparked waves of conversation after Companies House filings in October revealed the fintech chief had ditch his main residency in the UK in favour of the UAE.
But new reports have indicates officials at the Treasury, Financial Conduct Authority and Bank of England were only made aware of said changes once published in the media.
This caused regulators to press the firm for assurance the move would not affect the running of Revolut, which has been trying to obtain a fully-fledged banking licence in the UK over the last few years.
Storonsky, who co-founded Revolut in 2015, moved his residency under his family office, while Revolut’s company filings still show him as a resident in Britain.
The fintech said the move had no effect on its management and it was not required to inform regulators of the move.
A source familiar with the matter told the Financial Times it reflected Storonsky’s management of his family office from Dubai.
Revolt over Revolut
The latest tension between Revolut and regulators comes after reports the Governor of the Bank of England Andrew Bailey blocked a meeting – said to be ordained by the Chancellor – between the fintech and watchdog officials.
Rachel Reeves appeared at the launch of Revolut’s global headquarters last month, where she championed the firm’s £3bn investment into the UK.
Storonsky said at the new office launch that obtaining a fully-fledged banking licence in the UK was the firm’s “number one priority”.
The straight-talking fintech maverick has been critical of the UK’s regulatory landscape over the last few years, taking aim at the “extreme bureaucracy”.
City AM revealed earlier this year the group was set to miss its 12-month mobilisation stage – the period following licence approval to be fully-operative – in July, owing to the complexity and scale of the application.
Revolut has said it was “progressing through the final stages of mobilisation” and working “constructively with the PRA”.
The $75bn fintech – which will mark the largest mobilisation ever undertaken in the UK – has also said “getting this right is more important than rushing to meet a specific date”.
When questioned on a future London listing for Revolut last year, Storonky said it was “not rational” when compared to the deeper liquidity offered overseas.