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UK Statutory Instrument
2011
United Kingdom
Electronic Money Regulations 2011
At a glance
Enforced by
What's here
29 compliance obligations, 4 practical guides across 2 topics · 1 journey
Penalty landscape
3 of 29 obligations carry an unlimited fine. 2 carry different penalties and 24 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 9
- Director or Officer 7
- Applicant 3
- Trader 2
Plus 8 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Supporting — topic alignment
3 guidesMentioned in related content
1 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 2338 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 169 duties
- Merchant Shipping Act 1995 1995 144 duties
- Insolvency (England and Wales) Rules 2016 2016 101 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 95 duties
Directors and Officers also bound by 425 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 161 duties
- Companies Act 2006 2006 108 duties
- Insolvency Act 1986 1986 72 duties
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 2008 55 duties
- The Housing Administration (England and Wales) Rules 2018 2018 26 duties
Applicants also bound by 294 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 46 duties
- Human Medicines Regulations 2012 2012 30 duties
- The Land Registration Rules 2003 2003 25 duties
- Value Added Tax Regulations 1995 1995 18 duties
- Space Industry Regulations 2021 2021 14 duties
Traders also bound by 826 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 413 duties
- Companies Act 2006 2006 243 duties
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 2008 114 duties
- Insolvency (England and Wales) Rules 2016 2016 62 duties
- Building Societies Act 1986 1986 56 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part 1 — INTRODUCTORY PROVISIONS
Browse 6 other sections in this Part — procedural / definitional / commencement
Citation and commencement
Interpretation
Electronic money: further exclusions
Electronic money: exclusions
Notification of use of electronic communications exclusion
Notification of use of limited network exclusion
Part 2 — REGISTRATION
Conditions for authorisation
- Meet strict conditions to be authorised as an e-money institution Applicant
Variation of authorisation on Authority's own initiative
Other duties (1) — Crown / regulator
- FCA may change your e-money authorisation on its own initiative Statutory regulator
Conditions for registration
- Meet eligibility criteria to register as a small e-money institution Applicant
Application for authorisation if requirements cease to be met
- Apply for full authorisation if registration requirements are no longer met Director or Officer
Duty to notify changes
- Notify the FCA of changes to your e-money application Applicant
Browse 10 other sections in this Part — procedural / definitional / commencement
The register of certain electronic money issuers
Application to become an authorised electronic money institution or variation of an existing authorisation
Imposition of requirements
Variation etc at request of an authorised electronic money institution
Determination of application for authorisation or variation of authorisation
Cancellation of authorisation
Application for registration as a small electronic money institution or variation of an existing registration
Average outstanding electronic money
Supplementary provisions
Electronic money institutions acting without permission
Part 3 — PRUDENTIAL SUPERVISION ...
Capital requirements
- Maintain minimum capital for electronic money institutions Director or Officer
Safeguarding requirements
- Safeguard funds received in exchange for electronic money Director or Officer
Safeguarding option 2
- Safeguard customer funds using an insurance policy or guarantee Trader
Accounting and statutory audit
- Provide separate accounting information and auditor reports to the FCA Director or Officer
Outsourcing
Unlimited fine- Notify the FCA of outsourcing and meet safety conditions Director or Officer
Record keeping
- Keep records of regulatory compliance for five years Any Person
Browse 9 other sections in this Part — procedural / definitional / commencement
Safeguarding option 1
Power of the Authority to exclude assets
Insolvency events (except electronic money institution special administration)
Notice of intention
Decision following notice of intention
Supervision of firms exercising passport rights
Carrying on of Consumer Credit Act business by an EEA authorised electronic money institution
Insolvency Regulations
Notice of intention from an EEA authorised payment institution
Part 4 — ADDITIONAL ACTIVITIES AND USE OF DISTRIBUTORS AND AGENTS
Record keeping
- Keep records of electronic money compliance for five years Any Person
Requirement for agents to be registered
- Register agents before providing payment services Any Person
Duty to notify change in circumstance
- Notify the FCA of changes to your EMI status or safeguarding measures Director or Officer
Browse 4 other sections in this Part — procedural / definitional / commencement
Additional activities
Use of distributors and agents
Removal of agents from the register
Reliance
Part 5 — ISSUANCE AND REDEEMABILITY OF ELECTRONIC MONEY
Issuance and redeemability
- Issue and redeem electronic money at par value without delay Trader
Conditions of redemption
- State redemption conditions and fees in your e-money contracts Any Person
Prohibition of interest
- Do not pay interest or time-based benefits on electronic money Any Person
Browse 6 other sections in this Part — procedural / definitional / commencement
Application of Part 5
Fees for redemption
Amount of redemption
Requests for redemption
Redemption rights of persons other than consumers
Termination of a contract
Part 6 — THE AUTHORITY
Functions of the Authority
Other duties (1) — Crown / regulator
- FCA must follow regulatory principles when managing e-money issuance Statutory regulator
Proposal to take disciplinary measures
Other duties (1) — Crown / regulator
- FCA must issue warning and decision notices before taking disciplinary action Statutory regulator
Injunctions
Other duties (1) — Crown / regulator
- FCA may apply for court injunctions or asset freezes against you Statutory regulator
Proposal to require restitution
Other duties (1) — Crown / regulator
- FCA must issue warning and decision notices for restitution Statutory regulator
Restitution orders
Other duties (1) — Crown / regulator
- Courts may order electronic money issuers to pay restitution for breaches Tribunal / Court
Complaints
Other duties (1) — Crown / regulator
- FCA must provide a complaints process for e-money holders Statutory regulator
Browse 11 other sections in this Part — procedural / definitional / commencement
Monitoring and enforcement
Reporting requirements
Public censure
Financial penalties
Suspending authorisation etc
Power of Authority to require restitution
Costs of supervision
Guidance
Authority's exemption from liability in damages
Application and modification of primary and secondary legislation
Credit agreements
Part 7 — GENERAL
Prohibition on issuing electronic money by persons other than electronic money issuers
2 years imprisonment- Issue electronic money without authorisation Any Person
False claims to be an electronic money issuer
Unlimited fine- Claim to be an electronic money issuer when not authorised Any Person
Misleading the authority
Unlimited fine- Provide false or misleading information to the FCA Any Person
Liability of officers of bodies corporate etc
- Be held personally liable for electronic money offences Director or Officer
Duty to co-operate and exchange information
Other duties (1) — Crown / regulator
- FCA and HMRC must cooperate and share information on e-money issuers Statutory regulator
Right to bring actions
- Private persons may sue for losses caused by regulatory breaches Any Person
Browse 13 other sections in this Part — procedural / definitional / commencement
Defences
Restriction on penalties
Prosecution
Proceedings against unincorporated bodies
Prohibition on contracting-out
Persons with a Part 4 permission
EEA firms
Certified persons
Existing fixed term contracts
Amendments to the banking consolidation directive
Amendments to primary and secondary legislation
Application to Gibraltar
Transitional arrangements for existing electronic money institutions on the implementation of the second payment services directive
Schedules
Browse 99 other Schedules — structural / supplementary
Capital Requirements
Amendments to primary and secondary legislation
A programme of operations, setting out, in particular, the type...
The identity of the auditors of the applicant, if any....
(1) The legal status of the applicant and, where the...
The address of the head office of the applicant.
For the purposes of paragraphs 4, 5 , 5A and...
In the case of an applicant which proposes to provide...
A business plan including a forecast budget calculation for the...
Evidence that the applicant holds initial capital for the purposes...
A description of the measures taken for safeguarding the electronic...
A description of the applicant's governance arrangements and internal control...
A description of the applicant's procedure for monitoring, handling and...
A description of the applicant's process for filing, monitoring, tracking...
A description of the applicant's business continuity arrangements, including a...
A description of the principles and definitions used by the...
A statement of the applicant's security policy, including—
A description of the internal control mechanisms which the applicant...
A description of the applicant's structural organisation, including, where applicable,...
In relation to each person holding, directly or indirectly, a...
(1) The identity of directors and persons who are or...
For the purposes of these Regulations “initial capital” comprises one...
The Authority may in temporary and exceptional circumstances direct that...
An electronic money institution must not include in its own...
An authorised electronic money institution that carries on activities other...
An authorised electronic money institution must calculate its own funds...
Where a small electronic money institution is required by regulation...
The Authority may direct in respect of an authorised electronic...
The Authority may direct in respect of a small electronic...
A direction made under paragraph 15 or 16 must be...
The Authority may make a reasonable charge for making an...
If an electronic money institution has not completed a full...
An applicant for authorisation as an electronic money institution must...
(1) “Method A” means the calculation method set out in...
(1) “Method B” means the calculation method set out in...
(1) “Method C” means the calculation method set out in...
(1) “Method D” means the calculation method set out in...
(1) Where— (a) an electronic money institution provides payment services...
Except where this Schedule provides for a different method of...
(1) Where the business activities of an applicant for registration...
For the purposes of these Regulations “own funds” means own...
The items specified in paragraph 4(a) to (d) must be—...
Own funds are not to include guarantees provided by the...
The deductions from own funds are— (a) own shares at...
Where shares in another credit institution, financial institution, insurance undertaking,...
For the purposes of calculating own funds—
Credit agreements
Power to prohibit the entry into credit agreements
Power to restrict the entry into credit agreements
Interpretation
Notice of prohibition or restriction
Application to revoke or vary prohibition or restriction
Notice to the home state competent authority
Application and modification of the Banking Act 2009
Section 93(4) of the Banking Act 2009 (interpretation: other expressions)...
Section 233 of the Banking Act 2009 (insolvency regulations) applies...
Section 234 of the Banking Act 2009 (regulations: details) applies...
Section 235 of the Banking Act 2009 (regulations: procedure) applies...
Section 236 of the Banking Act 2009 (review) applies as...
For the purposes of the modifications in this Schedule— “...
Disciplinary powers
The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001
The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
The Tribunal
Authority rules
Information gathering and investigations
Control over electronic money institutions
Incoming firms: interventions by the Authority
Auditors and actuaries
Restriction on disclosure of information
Insolvency
Warning notices and decision notices
Limitation on powers to require documents
Consumer Credit Act 1974
The Competition Act 1998 (Determination of Turnover for Penalties) Order 2000
The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001
The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
The Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003
The Conduct of Employment Agencies and Employment Business Regulations 2003
The Financial Services (Distance Marketing) Regulations 2004
The Credit Institutions (Reorganisation and Winding Up) Regulations 2004
The Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 2004
The Pension Protection Fund (Entry Rules) Regulations 2005
The Money Laundering Regulations 2007
The 2000 Act
Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008
The Payment Services Regulations 2009
The Terrorism Act 2000
The Proceeds of Crime Act 2002
The Companies Act 2006
The Counter-Terrorism Act 2008
The Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975
The Financial Markets and Insolvency (Settlement Finality) Regulations 1999
The Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 2000
Exercise of market access rights by Gibraltar-based firms
Exercise by authorised electronic money institutions of market access rights in Gibraltar
References to Gibraltar regulator
Modification of legislation
Firms which have taken action before 13th January 2018
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Rules that apply to firms in SRO and fund operators in the TMPR | FCA (opens in a new tab) from FCA Detailed Guidance
- Financial services contracts regime | FCA (opens in a new tab) from FCA Detailed Guidance
- Scope and exclusions: changes under the PSRs and EMRs | FCA (opens in a new tab) from FCA Detailed Guidance
- Roles and responsibilities in payments regulation | FCA (opens in a new tab) from FCA Detailed Guidance
- Payment Services Regulations 2017 and Electronic Money Regulations 2011 | FCA (opens in a new tab) from FCA Detailed Guidance
- Electronic money and payment service providers: conduct of business requirements | FCA (opens in a new tab) from FCA Detailed Guidance
- Operational resilience: insights and observations for firms | FCA (opens in a new tab) from FCA Detailed Guidance
- Notify changes to individuals in a payment institution (PI) or e-money institution (EMI) | FCA (opens in a new tab) from FCA Detailed Guidance
- Notifications under Payment Services Regulations 2017 | FCA (opens in a new tab) from FCA Detailed Guidance
- Cryptoassets: How the gateway will operate | FCA (opens in a new tab) from FCA Detailed Guidance
- ... and 20 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Financial Conduct Authority
Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …
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Regulators
Learn more about the bodies that enforce this legislation.