UK Statutory Instrument SI 2011 United Kingdom

Electronic Money Regulations 2011

These Regulations implement Directive 2009/110/EC of the European Parliament and of the Council of 16th September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions (“the Directive”) (OJ No L 275, 27.10.2000, p.39).

Read it on legislation.gov.uk (opens in a new tab)
Enforced by
FCA
Status
Amended (in force with amendments)
Penalty ceiling
Imprisonment 3 of 30 obligations carry an unlimited fine. 2 carry different penalties and 25 have no criminal penalty — flagged in the list below.

Does it bind you?

Business-side roles with duties under this instrument.

Financial Services Firm14 Any Person4 Applicant3 Director or Officer1

Plus 8 duties on the regulator, Crown ministers and public bodies — folded into the section list below.

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Financial Services Firm — also bound by 167 other Acts
Any Person — also bound by 2340 other Acts
Applicant — also bound by 307 other Acts
Director or Officer — also bound by 429 other Acts
Companies Act 2006 126 duties

What it requires

Regulations creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

Part 1

INTRODUCTORY PROVISIONS

0 of 6 sections shown
6 other sections in this Part — procedural and definitional
s.001 Citation and commencement (opens in a new tab)
s.002 Interpretation
s.003 Electronic money: further exclusions
s.003 Electronic money: exclusions (opens in a new tab)
s.notification of use of electronic communications e Notification of use of electronic communications exclusion
s.notification of use of limited network exclusion Notification of use of limited network exclusion
Part 2

REGISTRATION

5 of 15 sections shown
s.006 Conditions for authorisation (opens in a new tab) Regulated
  • Meet strict conditions to be authorised as an e-money institutionApplicant
s.011 Variation of authorisation on Authority's own initiative (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA may change your e-money authorisation on its own initiativeStatutory regulator
s.013 Conditions for registration (opens in a new tab) Regulated
  • Meet eligibility criteria to register as a small e-money institutionApplicant
s.016 Application for authorisation if requirements cease to be met (opens in a new tab) Regulated
  • Apply for full authorisation if registration requirements are no longer metFinancial Services Firm
s.017 Duty to notify changes (opens in a new tab) Regulated
  • Notify the FCA of changes to your e-money applicationApplicant
10 other sections in this Part — procedural and definitional
s.004 The register of certain electronic money issuers
s.005 Application to become an authorised electronic money institution or variation of an existing authorisation (opens in a new tab)
s.007 Imposition of requirements (opens in a new tab)
s.008 Variation etc at request of an authorised electronic money institution (opens in a new tab)
s.009 Determination of application for authorisation or variation of authorisation (opens in a new tab)
s.010 Cancellation of authorisation (opens in a new tab)
s.012 Application for registration as a small electronic money institution or variation of an existing registration (opens in a new tab)
s.014 Average outstanding electronic money (opens in a new tab)
s.015 Supplementary provisions (opens in a new tab)
s.018 Electronic money institutions acting without permission (opens in a new tab)
Part 3

PRUDENTIAL SUPERVISION ...

6 of 15 sections shown
s.019 Capital requirements (opens in a new tab) Regulated
  • Maintain minimum capital for electronic money institutionsFinancial Services Firm
s.020 Safeguarding requirements (opens in a new tab) Regulated
  • Safeguard funds received in exchange for electronic moneyFinancial Services Firm
s.022 Safeguarding option 2 (opens in a new tab) Regulated
  • Safeguard customer funds using an insurance policy or guaranteeFinancial Services Firm
s.025 Accounting and statutory audit (opens in a new tab) Regulated
  • Provide separate accounting information and auditor reports to the FCAFinancial Services Firm
s.026 Outsourcing (opens in a new tab) Prosecution
  • Notify the FCA of outsourcing and meet safety conditionsFinancial Services Firm

Unlimited fine

s.027 Record keeping (opens in a new tab) Regulated
  • Keep records of regulatory compliance for five yearsFinancial Services Firm
9 other sections in this Part — procedural and definitional
s.021 Safeguarding option 1 (opens in a new tab)
s.023 Power of the Authority to exclude assets (opens in a new tab)
s.024 Insolvency events (except electronic money institution special administration) (opens in a new tab)
s.028 Notice of intention (opens in a new tab)
s.029 Decision following notice of intention (opens in a new tab)
s.030 Supervision of firms exercising passport rights (opens in a new tab)
s.031 Carrying on of Consumer Credit Act business by an EEA authorised electronic money institution (opens in a new tab)
s.insolvency regulations Insolvency Regulations
s.notice of intention from an eea authorised payment Notice of intention from an EEA authorised payment institution
Part 4

ADDITIONAL ACTIVITIES AND USE OF DISTRIBUTORS AND AGENTS

4 of 7 sections shown
s.031 Record keeping Regulated
  • Keep records of electronic money compliance for five yearsFinancial Services Firm
s.034 Requirement for agents to be registered (opens in a new tab) Regulated
  • Register agents before providing payment servicesFinancial Services Firm
s.036 Reliance (opens in a new tab) Regulated
  • Take reasonable steps to ensure third parties comply with regulationsFinancial Services Firm
s.037 Duty to notify change in circumstance (opens in a new tab) Regulated
  • Notify the FCA of changes to your EMI status or safeguarding measuresFinancial Services Firm
3 other sections in this Part — procedural and definitional
s.032 Additional activities (opens in a new tab)
s.033 Use of distributors and agents (opens in a new tab)
s.035 Removal of agents from the register (opens in a new tab)
Part 5

ISSUANCE AND REDEEMABILITY OF ELECTRONIC MONEY

3 of 9 sections shown
s.039 Issuance and redeemability (opens in a new tab) Regulated
  • Issue and redeem electronic money at par value without delayFinancial Services Firm
s.040 Conditions of redemption (opens in a new tab) Regulated
  • State redemption conditions and fees in your e-money contractsFinancial Services Firm
s.045 Prohibition of interest (opens in a new tab) Regulated
  • Do not pay interest or time-based benefits on electronic moneyFinancial Services Firm
6 other sections in this Part — procedural and definitional
s.038 Application of Part 5 (opens in a new tab)
s.041 Fees for redemption (opens in a new tab)
s.042 Amount of redemption (opens in a new tab)
s.043 Requests for redemption (opens in a new tab)
s.044 Redemption rights of persons other than consumers (opens in a new tab)
s.046 Termination of a contract (opens in a new tab)
Part 6

THE AUTHORITY

6 of 17 sections shown
s.047 Functions of the Authority (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA must follow regulatory principles when managing e-money issuanceStatutory regulator
s.053 Proposal to take disciplinary measures (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA must issue warning and decision notices before taking disciplinary actionStatutory regulator
s.054 Injunctions (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA may apply for court injunctions or asset freezes against youStatutory regulator
s.056 Proposal to require restitution (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA must issue warning and decision notices for restitutionStatutory regulator
s.057 Restitution orders (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • Courts may order electronic money issuers to pay restitution for breachesTribunal / Court
s.058 Complaints (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA must provide a complaints process for e-money holdersStatutory regulator
11 other sections in this Part — procedural and definitional
s.048 Monitoring and enforcement (opens in a new tab)
s.049 Reporting requirements (opens in a new tab)
s.050 Public censure (opens in a new tab)
s.051 Financial penalties (opens in a new tab)
s.052 Suspending authorisation etc (opens in a new tab)
s.055 Power of Authority to require restitution (opens in a new tab)
s.059 Costs of supervision (opens in a new tab)
s.060 Guidance (opens in a new tab)
s.061 Authority's exemption from liability in damages (opens in a new tab)
s.062 Application and modification of primary and secondary legislation (opens in a new tab)
s.credit agreements Credit agreements
Part 7

GENERAL

6 of 19 sections shown
s.063 Prohibition on issuing electronic money by persons other than electronic money issuers (opens in a new tab) Imprisonment
  • Issue electronic money without authorisationAny Person
s.064 False claims to be an electronic money issuer (opens in a new tab) Prosecution
  • Claim to be an electronic money issuer when not authorisedAny Person

Unlimited fine

s.066 Misleading the authority (opens in a new tab) Prosecution
  • Provide false or misleading information to the FCAAny Person

Unlimited fine

s.068 Liability of officers of bodies corporate etc (opens in a new tab) Regulated
  • Be held personally liable for electronic money offencesDirector or Officer
s.071 Duty to co-operate and exchange information (opens in a new tab) Regulated
Other duties (1) — Crown / regulator
  • FCA and HMRC must cooperate and share information on e-money issuersStatutory regulator
s.072 Right to bring actions (opens in a new tab) Regulated
  • Private persons may sue for losses caused by regulatory breachesAny Person
13 other sections in this Part — procedural and definitional
s.065 Defences (opens in a new tab)
s.067 Restriction on penalties (opens in a new tab)
s.069 Prosecution (opens in a new tab)
s.070 Proceedings against unincorporated bodies (opens in a new tab)
s.073 Prohibition on contracting-out (opens in a new tab)
s.074 Persons with a Part 4 permission (opens in a new tab)
s.075 EEA firms (opens in a new tab)
s.076 Certified persons (opens in a new tab)
s.077 Existing fixed term contracts (opens in a new tab)
s.078 Amendments to the banking consolidation directive (opens in a new tab)
s.079 Amendments to primary and secondary legislation (opens in a new tab)
s.080 Application to Gibraltar (opens in a new tab)
s.transitional arrangements for existing electronic Transitional arrangements for existing electronic money institutions on the implementation of the second payment services directive
Schedules

Schedules

0 of 99 shown
99 other schedules
s.002 Capital Requirements (opens in a new tab)
s.004 Amendments to primary and secondary legislation (opens in a new tab)
s.sch001 A programme of operations, setting out, in particular, the type...
s.sch001 The identity of the auditors of the applicant, if any....
s.sch001 (1) The legal status of the applicant and, where the...
s.sch001 The address of the head office of the applicant.
s.sch001 For the purposes of paragraphs 4, 5 , 5A and...
s.sch001 In the case of an applicant which proposes to provide...
s.sch001 A business plan including a forecast budget calculation for the...
s.sch001 Evidence that the applicant holds initial capital for the purposes...
s.sch001 A description of the measures taken for safeguarding the electronic...
s.sch001 A description of the applicant's governance arrangements and internal control...
s.sch001 A description of the applicant's procedure for monitoring, handling and...
s.sch001 A description of the applicant's process for filing, monitoring, tracking...
s.sch001 A description of the applicant's business continuity arrangements, including a...
s.sch001 A description of the principles and definitions used by the...
s.sch001 A statement of the applicant's security policy, including—
s.sch001 A description of the internal control mechanisms which the applicant...
s.sch001 A description of the applicant's structural organisation, including, where applicable,...
s.sch001 In relation to each person holding, directly or indirectly, a...
s.sch001 (1) The identity of directors and persons who are or...
s.sch002 For the purposes of these Regulations “initial capital” comprises one...
s.sch002 The Authority may in temporary and exceptional circumstances direct that...
s.sch002 An electronic money institution must not include in its own...
s.sch002 An authorised electronic money institution that carries on activities other...
s.sch002 An authorised electronic money institution must calculate its own funds...
s.sch002 Where a small electronic money institution is required by regulation...
s.sch002 The Authority may direct in respect of an authorised electronic...
s.sch002 The Authority may direct in respect of a small electronic...
s.sch002 A direction made under paragraph 15 or 16 must be...
s.sch002 The Authority may make a reasonable charge for making an...
s.sch002 If an electronic money institution has not completed a full...
s.sch002 An applicant for authorisation as an electronic money institution must...
s.sch002 (1) “Method A” means the calculation method set out in...
s.sch002 (1) “Method B” means the calculation method set out in...
s.sch002 (1) “Method C” means the calculation method set out in...
s.sch002 (1) “Method D” means the calculation method set out in...
s.sch002 (1) Where— (a) an electronic money institution provides payment services...
s.sch002 Except where this Schedule provides for a different method of...
s.sch002 (1) Where the business activities of an applicant for registration...
s.sch002 For the purposes of these Regulations “own funds” means own...
s.sch002 The items specified in paragraph 4(a) to (d) must be—...
s.sch002 Own funds are not to include guarantees provided by the...
s.sch002 The deductions from own funds are— (a) own shares at...
s.sch002 Where shares in another credit institution, financial institution, insurance undertaking,...
s.sch002 For the purposes of calculating own funds—
s.sch002a Credit agreements
s.sch002a Power to prohibit the entry into credit agreements
s.sch002a Power to restrict the entry into credit agreements
s.sch002a Interpretation
s.sch002a Notice of prohibition or restriction
s.sch002a Application to revoke or vary prohibition or restriction
s.sch002a Notice to the home state competent authority
s.sch002za Application and modification of the Banking Act 2009
s.sch002za Section 93(4) of the Banking Act 2009 (interpretation: other expressions)...
s.sch002za Section 233 of the Banking Act 2009 (insolvency regulations) applies...
s.sch002za Section 234 of the Banking Act 2009 (regulations: details) applies...
s.sch002za Section 235 of the Banking Act 2009 (regulations: procedure) applies...
s.sch002za Section 236 of the Banking Act 2009 (review) applies as...
s.sch002za For the purposes of the modifications in this Schedule— “...
s.sch003 Disciplinary powers
s.sch003 The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001
s.sch003 The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
s.sch003 The Tribunal
s.sch003 Authority rules
s.sch003 Information gathering and investigations
s.sch003 Control over electronic money institutions
s.sch003 Incoming firms: interventions by the Authority
s.sch003 Auditors and actuaries
s.sch003 Restriction on disclosure of information
s.sch003 Insolvency
s.sch003 Warning notices and decision notices
s.sch003 Limitation on powers to require documents
s.sch004 Consumer Credit Act 1974
s.sch004 The Competition Act 1998 (Determination of Turnover for Penalties) Order 2000
s.sch004 The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001
s.sch004 The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
s.sch004 The Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003
s.sch004 The Conduct of Employment Agencies and Employment Business Regulations 2003
s.sch004 The Financial Services (Distance Marketing) Regulations 2004
s.sch004 The Credit Institutions (Reorganisation and Winding Up) Regulations 2004
s.sch004 The Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 2004
s.sch004 The Pension Protection Fund (Entry Rules) Regulations 2005
s.sch004 The Money Laundering Regulations 2007
s.sch004 The 2000 Act
s.sch004 Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008
s.sch004 The Payment Services Regulations 2009
s.sch004 The Terrorism Act 2000
s.sch004 The Proceeds of Crime Act 2002
s.sch004 The Companies Act 2006
s.sch004 The Counter-Terrorism Act 2008
s.sch004 The Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975
s.sch004 The Financial Markets and Insolvency (Settlement Finality) Regulations 1999
s.sch004 The Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 2000
s.sch005 Exercise of market access rights by Gibraltar-based firms
s.sch005 Exercise by authorised electronic money institutions of market access rights in Gibraltar
s.sch005 References to Gibraltar regulator
s.sch005 Modification of legislation
s.sch005 Firms which have taken action before 13th January 2018

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