The process for onboarding Guarantors is open, transparent and accountable. On request, unsuccessful applicants are advised of the rationale for the decision and have a route to appeal. The board, through its Nomination Committee, is responsible for managing the process which is administered by Pay.UK’s Corporate Governance team.
Subject to the Articles, and in accordance with the Companies Act 2006, Guarantors will be able to exercise rights afforded to a member of a company limited by guarantee. These include:
Withdrawal of membership
By the Guarantor
Guarantors may withdraw from guarantorship of the company by giving three months’ notice to the company in writing. Guarantorship is only transferable in accordance with Pay.UK’s Articles (namely transfers intra-group to a legal entity who satisfies the eligibility criteria and to which the board has consented).
By the Company
Pay.UK’s Articles specify certain circumstances in which a Guarantor’s membership can be terminated. The board may initiate a withdrawal of membership from a Guarantor if, for example, a Guarantor acts in a manner which is contrary to the interests of Pay.UK and its regulatory imperatives or if, in the reasonable opinion of Pay.UK, the Guarantor is not acting in a way that is conducive to the robustness and resilience of the payments ecosystem.
Once an application is received by the Stakeholder Engagement team, due diligence is undertaken by Pay.UK before the name of a potential Guarantor can be put forward to the Nomination Committee and then to the board for consideration. This is currently undertaken by the Corporate Governance team.
A series of fundamental checks are undertaken as part of the due diligence process. These include: