Former UK government minister Gavin Williamson has been approved to join the advisory board of fintech company Lanistar, receiving compensation in shares for his role. The Advisory Committee on Business Appointments (Acoba) cautioned Williamson against leveraging his government connections for the benefit of Lanistar.
Williamson expressed to Acoba that his contributions would include providing guidance, connections with financial institutions, and leadership. Acoba noted the risk that these connections could unfairly influence government activities, reminding him of the two-year lobbying ban that applies to former ministers.
The newly formed advisory board, which is yet to convene, will meet monthly with Lanistar’s executive committee and will consist of individuals from both within and outside the industry.
Established in 2019, Lanistar has not yet launched its services in the UK but does have operations in Brazil. Its initial offering aimed to provide a debit card that connects to multiple bank accounts through "polymorphic" technology and open banking. However, its current Brazilian offering is a standard debit card, with promise of a revolutionary new payment card product in the future.
In 2020, the FCA issued a warning to potential investors in Lanistar, indicating that the company was delivering services without the necessary authorization. This warning was issued shortly after Lanistar conducted a promotional campaign featuring social media influencers, as founder Gurhan Kiziloz aimed to create a fintech valued at over £10 billion.
Modulr Agreement
Initially claiming discussions with the FCA to obtain a full banking license, Lanistar was granted approval in 2021 to operate as an Electronic Money Directive (EMD) agent for payment firm Modulr. This role allowed Lanistar to provide digital accounts for sending and receiving payments. However, the company has not yet launched in the UK and has since severed its relationship with Modulr, stating that they left due to Modulr’s inability to offer the comprehensive banking services experienced with their Brazilian partner.
While Lanistar has not provided information regarding plans to replace the Modulr agreement or a timeline for launching in the UK, its website maintains that it intends to expand into the UK, EU, Argentina, and Colombia "very soon."
Recently, Modulr faced its own challenges with the FCA, agreeing to impose customer onboarding restrictions until it meets new regulatory standards.