Revolut has successfully reached an agreement with its primary backer, SoftBank, regarding changes to the latter’s shareholding, removing a significant hurdle in the fintech’s quest for a UK banking licence.
The Bank of England’s Prudential Regulation Authority (PRA) required Revolut to consolidate its six classes of shares into one and simplify its ownership structure in order to obtain this licence. While other investors have consented to convert their shares into a single class, SoftBank had been hesitant, demanding double the amount of stock Revolut was offering in exchange for relinquishing its preferential rights.
According to the Financial Times, the dispute has now been resolved after months of negotiation. The agreement does not involve any new share issuance to SoftBank and is not expected to have any financial repercussions for Revolut.
Revolut has been pursuing a UK banking licence for two-and-a-half years, a prolonged process attributed in part to the Financial Conduct Authority’s concerns regarding auditing, compliance, and corporate culture.
Recently, reports emerged that the Financial Conduct Authority is investigating whether Revolut permitted funds to be transferred from accounts flagged as suspicious by the National Crime Agency. Additionally, it was revealed that the company is set to delay the filing of its annual accounts for the second consecutive year. The 2021 accounts were finally submitted this March, but auditor BDO expressed concerns about verifying £477 million of revenue and could not confirm its “completeness or occurrence” due to issues with Revolut’s internal IT systems.