UK fintech Revolut’s co-founders say they would not consider a flotation on the London Stock Exchange amid the country’s “extremely bureaucratic regulator” that they complain is holding them back from getting a banking licence.
Nik Storonsky and Vlad Yatsenko said they have no immediate plans to float the business but would choose New York over London when they do.
The pair cast considerable shade on Britain as a place to run a business, citing high taxes, red tape, and a skills shortage since Brexit.
Revolut, which is based in London and was last valued at US$33bn, said it was closing in on receiving a UK banking licence earlier this year as it reported an annual profit for the first time in long-delayed 2021 results, though auditor BDO warned that some information “may be materially misstated” as it was unable to satisfy itself of the “completeness and occurrence” of revenues.
The board, chaired by City veteran Martin Gilbert, has been under pressure to improve Revolut’s culture and governance as it seeks its UK banking licence, was later frustrated after management portrayed the critical audit report as a clean bill of health.
This week, the co-founders said that while US tech companies are supported by the government it is “completely the opposite in the UK”, they told the Times newspaper, and that hiring in recent years had proved problematic as “since Brexit there is less talent coming in”
Frustration was also expressed that a banking licence is still not been granted, with the Bank of England’s Prudential Regulation Authority “doing a lot to slow us down”, imposing months of unexplained delays and capital requirements that are higher than those imposed on banks.
Storonsky said Revolut was being asked to hold 7% capital requirements, compared to the 2% stipulated in banking legislation.
“We are not allowed to grow and compete internationally,” he told the newspaper.
Source: ProActiveInvestors
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