- FCA issued a First Supervisory Notice to Sendsii Ltd on 23 January 2026, prohibiting all regulated financial activities effective immediately.
- HMRC suspended Sendsii’s registration on 9 October 2025, causing the firm to breach Payment Services Regulations 2017 authorisation conditions.
- The restriction prevents Sendsii from operating as a payment services provider, affecting any transaction processing and fund transfer services currently offered.
FCA Escalates Enforcement Against Sendsii Ltd
The Financial Conduct Authority has escalated enforcement action against Sendsii Ltd, a payment services provider, by issuing a First Supervisory Notice on 23 January 2026. The notice imposes an outright prohibition on the firm from conducting any regulated activity under FCA jurisdiction. This represents a decisive regulatory intervention following a cascading chain of compliance failures that began upstream with HM Revenue and Customs.
The enforcement trigger originated with HMRC’s suspension of Sendsii’s registration on 9 October 2025. Under the Payment Services Regulations 2017 (PSR 2017), payment services providers must maintain active registration with tax authorities as a foundational requirement for FCA authorisation. When HMRC revoked that status, Sendsii automatically fell into non-compliance with the regulatory framework governing its licence. The FCA’s supervisory notice formalises this breach and closes any operational loopholes.
What “No Regulated Activity” Means in Practice
The FCA’s language is deliberately absolute. Sendsii cannot accept new payments, process existing transactions, hold customer funds, or issue payment instruments. Any residual servicing obligations must be wound down within the scope of the notice. This is not a temporary suspension or conditional restriction requiring remedial steps—it is a functional death sentence for the firm’s regulated operations.
Payment services firms typically operate under one of several authorisation types under PSR 2017: as a payment institution, electronic money institution, or authorised payment system operator. Sendsii’s loss of HMRC registration invalidated whichever designation it held. The FCA’s response protects consumers and the payments ecosystem by preventing a non-compliant entity from continuing to hold customer assets or process value transfers.
“The suspension means that Sendsii Ltd no longer met the conditions required for its FCA authorisation under the Payment Services Regulations 2017.”
Consumer Protection and Operational Implications
For customers, the FCA notice creates immediate jeopardy around fund recovery. Sendsii must identify all outstanding customer claims and comply with the FCA’s protocols for handling client money. If the firm enters formal insolvency, the Financial Services Compensation Scheme (FSCS) may offer partial recovery up to £85,000 per eligible claimant, depending on the firm’s authorisation category and the nature of funds held.
Regulatory precedent suggests the FCA will now monitor whether Sendsii attempts to operate in unregulated spaces or disguise activities as non-financial services. The notice likely includes ongoing reporting requirements and may precede director disqualification proceedings or referral to law enforcement if fraud or deliberate concealment is uncovered.
This enforcement action underscores how quickly PSR 2017 compliance can unravel when tax authority registration lapses. For fintech operators, maintaining HMRC alignment is not a peripheral compliance task—it is the linchpin of FCA authorisation. Investors in payment services must now factor reputational and operational risk tied to upstream tax registry status as a material due diligence point.
