PART II SPECIFIED ACTIVITIES

F1CHAPTER IIA ELECTRONIC MONEY

Annotations:
Amendments (Textual)
F1

Pt. 2 Ch. 2A inserted (11.4.2002 for specified purposes, 27.4.2002 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 (S.I. 2002/682), arts. 1(2), 4 (with arts. 9, 10)

Exclusions

Persons certified as small issuers etc.9C

1

There is excluded from article 9B the issuing of electronic money by a person to whom F2the FCA has given a certificate under this article (provided the certificate has not been revoked).

2

An application for a certificate may be made by—

a

a body corporate, or

b

a partnership,

(other than a credit institution as defined in F5Article 4(1)(1) of the capital requirements regulation) which has its head office in the United Kingdom.

3

F4The FCA must, on the application of such a person (“A”), give A a certificate if it appears to F3the FCA that paragraph (4), (5) or (6) applies.

4

This paragraph applies if—

a

A does not issue electronic money except on terms that the electronic device on which the monetary value is stored is subject to a maximum storage amount of not more than 150 euro; and

b

A’s total liabilities with respect to the issuing of electronic money do not (or will not) usually exceed 5 million euro and do not (or will not) ever exceed 6 million euro.

5

This paragraph applies if—

a

the condition in paragraph (4)(a) is met;

b

A’s total liabilities with respect to the issuing of electronic money do not (or will not) exceed 10 million euro; and

c

electronic money issued by A is accepted as a means of payment only by—

i

subsidiaries of A which perform operational or other ancillary functions related to electronic money issued or distributed by A; or

ii

other members of the same group as A (other than subsidiaries of A).

6

This paragraph applies if—

a

the conditions in paragraphs (4)(a) and (5)(b) are met; and

b

electronic money issued by A is accepted as a means of payment, in the course of business, by not more than one hundred persons where—

i

those persons accept such electronic money only at locations within the same premises or limited local area; or

ii

those persons have a close financial or business relationship with A, such as a common marketing or distribution scheme.

7

For the purposes of paragraph (6)(b)(i), locations are to be treated as situated within the same premises or limited local area if they are situated within—

a

a shopping centre, airport, railway station, bus station, or campus of a university, polytechnic, college, school or similar educational establishment; or

b

an area which does not exceed four square kilometres;

but sub-paragraphs (a) and (b) are illustrative only and are not to be treated as limiting the scope of paragraph (6)(b)(i).

8

For the purposes of paragraph (6)(b)(ii), persons are not to be treated as having a close financial or business relationship with A merely because they participate in arrangements for the acceptance of electronic money issued by A.

9

In this article, references to amounts in euro include references to equivalent amounts in sterling.

10

A person to whom a certificate has been given under this article (and whose certificate has not been revoked) is referred to in this Chapter as a “certified person”.