The Electronic Money Regulations 2011

authorised electronic money institutions and their EEA branches;

small electronic money institutions;

agents of electronic money institutions required to be registered under regulation 34; and

the National Savings Bank where it issues electronic money.

is not included on the register; and

issues, or proposes to issue, electronic money,

keep the register in any form it thinks fit;

include on the register such information as the Authority considers appropriate, provided that the register identifies the electronic money issuance for which the institution is authorised or registered under this Part; and

exploit commercially the information contained in the register, or any part of that information.

publish the register online and make it available for public inspection;

update the register on a regular basis; and

contain a statement of the proposed variation;

contain a statement of the electronic money issuance and payment services business which the applicant proposes to carry on if the authorisation is varied; and

contain, or be accompanied by, such other information as the Authority may reasonably require.

a body corporate which has a branch that is located in the United Kingdom and whose head office is situated in a territory that is outside the EEA.

robust governance arrangements for its electronic money issuance and payment service business, including a clear organisational structure with well-defined, transparent and consistent lines of responsibility;

effective procedures to identify, manage, monitor and report any risks to which it might be exposed; and

adequate internal control mechanisms, including sound administrative, risk management and accounting procedures,

having regard to the need to ensure the sound and prudent conduct of the affairs of an authorised electronic money institution, any persons having a qualifying holding in the institution are fit and proper persons;

the directors and persons responsible for the management of its electronic money and payment services business are of good repute and possess appropriate knowledge and experience to issue electronic money and provide payment services;

it has a business plan (including for the first three years, a forecast budget calculation) under which appropriate and proportionate systems, resources and procedures will be employed by the institution to operate soundly;

it has taken adequate measures for the purpose of safeguarding electronic money holders' funds in accordance with regulation 20.

that those links are not likely to prevent the Authority's effective supervision of the applicant; and

if it appears to the Authority that CL is subject to the laws, regulations or administrative provisions of a territory which is not an EEA state (“the foreign provisions”), that neither the foreign provisions, nor any deficiency in their enforcement, would prevent the Authority's effective supervision of the applicant.

CL is a parent undertaking of the applicant;

CL is a subsidiary undertaking of the applicant;

CL is a parent undertaking of a subsidiary undertaking of the applicant;

CL is a subsidiary undertaking of a parent undertaking of the applicant;

CL owns or controls 20% or more of the voting rights or capital of the applicant; or

the applicant owns or controls 20% or more of the voting rights or capital of CL.

take a specified action;

refrain from taking a specified action.

an applicant intends to carry on business activities other than the issuance of electronic money and provision of payment services; and

that authorisation has been granted to carry out electronic money issuance; or

that the variation has been granted,

if it decides to refuse the application or to impose a requirement, give the applicant a decision notice; or

if it grants the application without imposing a requirement, give the applicant notice of its decision, stating the date on which the authorisation or variation takes effect.

the person does not issue electronic money within 12 months beginning with the date on which the authorisation took effect;

the person requests, or consents to, the cancellation of the authorisation;

the person ceases to engage in business activity for more than six months;

the person has obtained authorisation through false statements or any other irregular means;

the person no longer meets, or is unlikely to meet, any of the conditions set out in regulation 6(4) to (8) or the requirement in regulation 19(1) to maintain own funds;

the person has issued electronic money or provided payment services other than in accordance with the authorisation granted to it;

the person would constitute a threat to the stability of a payment system by continuing its electronic money or payment services business;

the cancellation is desirable in order to protect the interests of consumers; or

the person's issuance of electronic money or provision of payment services is otherwise unlawful.

if it decides to cancel the authorisation, give the person a decision notice; or

if it decides not to cancel the authorisation, give the person notice of its decision.

the person no longer meets, or is unlikely to continue to meet, any of the conditions set out in regulation 6(4) to (8) or the requirement in regulation 19(1) to maintain own funds;

the person has issued electronic money or provided a payment service other than in accordance with the authorisation granted to it;

the person would constitute a threat to the stability of a payment system by continuing to issue electronic money or provide payment services;

the variation is desirable in order to protect the interests of consumers; or

the person's issuance of electronic money or provision of payment services is otherwise unlawful.

immediately, if the notice given under paragraph (6) states that this is the case;

on such date as may be specified in the notice; or

if no date is specified in the notice, when the matter to which the notice relates is no longer open to review (see paragraph 13).

give details of the variation;

state the Authority's reasons for the variation and its determination as to when the variation takes effect;

inform the person that they may make representations to the Authority within such period as may be specified in the notice (whether or not the person has referred the matter to the Upper Tribunal);

inform the person of the date on which the variation takes effect; and

inform the person of their right to refer the matter to the Upper Tribunal and the procedure for such a reference.

to vary the authorisation in the way proposed; or

if the authorisation has been varied, not to rescind the variation,

not to vary the authorisation in the way proposed;

to vary the authorisation in a different way; or

to rescind a variation which has taken effect,

contain a statement of the proposed variation;

contain a statement of the electronic money issuance and payment services business which the applicant proposes to carry on if the registration is varied; and

contain, or be accompanied by, such other information as the Authority may reasonably require.

robust governance arrangements for its electronic money and payment services business, including a clear organisational structure with well-defined, transparent and consistent lines of responsibility; and

effective procedures to identify, manage, monitor and report any risks to which it might be exposed,

the directors and persons responsible for the management of its electronic money and payment services business are of good repute and possess appropriate knowledge and experience to issue electronic money and provide payment services;

it has a business plan (including for the first three years, a forecast budget calculation) under which appropriate and proportionate systems, resources and procedures will be employed by the institution to operate soundly; and

it has taken adequate measures for the purpose of safeguarding electronic money holders' funds in accordance with regulation 20.

an offence under Part 7 of the Proceeds of Crime Act 2002 (money laundering) M16 or under F10the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ;

an offence under section 15 (fund-raising), 16 (use and possession), 17 (funding arrangements), 18 (money laundering) or 63 (terrorist finance: jurisdiction) of the Terrorism Act 2000 M17;

an offence under the 2000 Act;

an offence under the Terrorist Asset-Freezing etc. Act 2010M18F11, the Al-Qaida and Taliban (Asset-Freezing) Regulations 2010 or F12the ISIL (Da’esh) and Al-Qaida (Asset-Freezing) Regulations 2011 (S.I. 2011/2742 as renamed by S.I. 2016/937) ;

an offence under these Regulations or the Payment Services Regulations 2009; or

any other financial crime.

are not related to the issuance of electronic money; and

are executed by the institution, including any of its agents who are in the United Kingdom.

there is, or is likely to be, a material change affecting any matter contained in that information; or

it becomes apparent to the applicant that the information is incomplete or contains a material inaccuracy,

350,000 euro; or

the amount of the own funds requirement calculated in accordance with paragraph 13 of Schedule 2 subject to any adjustment directed by the Authority under paragraph 15 of that Schedule,

only a proportion of the funds that have been received are to be used for the execution of a payment transaction (with the remainder being used for non-payment services); and

the precise portion attributable to the execution of the payment transaction is variable or unknown in advance,

are credited to the electronic money institution's payment account; or

are otherwise made available to the electronic money institution,

references to an “authorised payment institution” are to be treated as references to an authorised electronic money institution;

references to a “payment transaction” are to be treated as references to a payment transaction that is not related to the issuance of electronic money.

place them in a separate account that it holds with an authorised credit institution; or

invest the relevant funds in secure, liquid, low-risk assets (“relevant assets”) and place those assets in a separate account with an authorised custodian.

be designated in such a way as to show that it is an account which is held for the purpose of safeguarding relevant funds or relevant assets in accordance with this regulation; and

be used only for holding those funds or assets.

any relevant funds segregated in accordance with paragraph (1);

any relevant funds placed in an account in accordance with paragraph (2)(a); and

any relevant assets placed in an account in accordance with paragraph (2)(b).

assets are “liquid” if they are approved as such by the Authority.

the claims of electronic money holders are to be paid from the asset pool in priority to all other creditors; and

until all the claims of electronic money holders have been paid, no right of set-off or security right may be exercised in respect of the asset pool except to the extent that the right of set-off relates to fees and expenses in relation to operating an account held in accordance with regulation 21(2)(a) or (b) or 22(1)(b).

of which it has become aware in its capacity as an auditor of an electronic money institution or of a person with close links to an electronic money institution; and

which relate to the electronic money issued and payment services provided by that institution.

the auditor reasonably believes that the institution is not, may not be or may cease to be, a going concern;

the auditor is precluded from stating in the auditor's report that the annual accounts have been properly prepared in accordance with the Companies Act 2006;

the auditor is precluded from stating in the auditor's report, where applicable, that the annual accounts give a true and fair view of the matters referred to in section 495 of the Companies Act 2006 (auditor's report on company's annual accounts) including as that section is applied and modified by regulation 39 of the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 M22 (“the LLP Regulations”); or

the auditor is required to state in the auditor's report in relation to the person concerned any of the facts referred to in subsection (2), (3) or (5) of section 498 M23 of the Companies Act 2006 (duties of auditor) or, in the case of limited liability partnerships, subsection (2), (3) or (4) of section 498 as applied and modified by regulation 40 of the LLP Regulations.

a parent undertaking of A;

a subsidiary undertaking of A;

a parent undertaking of a subsidiary undertaking of A; or

a subsidiary undertaking of a parent undertaking of A.

the outsourcing does not result in any delegation by the senior management of the institution of responsibility for complying with the requirements imposed by or under these Regulations or the Payment Services Regulations 2009;

the relationship and obligations of the institution towards its electronic money holders under these Regulations or the Payment Services Regulations 2009 is not substantially altered;

compliance with the conditions which the institution must observe in order to become an authorised electronic money institution and remain so is not adversely affected; and

none of the conditions of the institution's authorisation requires removal or variation.

compliance by the institution with these Regulations or the Payment Services Regulations 2009 and any requirement of its authorisation under these Regulations;

the financial performance of the institution; or

the soundness or continuity of the institution's electronic money issuance or provision of payment services.

identifies the electronic money issuance, redemption, distribution or payment services which it seeks to carry on in exercise of those rights in that State;

gives the names of those responsible for the management of a proposed EEA branch, if any;

provides details of the organisational structure of a proposed EEA branch, if any; and

identifies the distributors, if any, whom the institution intends to engage to distribute or redeem electronic money in exercise of its passport rights in that State.

the name and address of the authorised electronic money institution; and

the information contained in the notice.

money laundering or terrorist financing within the meaning of the money laundering directive is taking place, has taken place, or has been attempted; or

the risk of such activities taking place would be increased,

if it decides not to register the branch, or to cancel its registration, give the authorised electronic money institution a decision notice; or

if it decides to register the branch, or not to cancel its registration, give the authorised electronic money institution notice of its decision.

notify the host state competent authority, whenever it intends to carry out an on-site inspection in the host state competent authority's territory; and

money laundering or terrorist financing within the meaning of F19the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 is taking place, has taken place, or has been attempted; or

the risk of such activities taking place would be increased,

the need to use its resources in the most efficient and economic way;

the responsibilities of those who manage the affairs of electronic money issuers;

the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

the desirability of facilitating innovation in connection with the issuance of electronic money and the provision of payment services;

the international character of financial services and markets and the desirability of maintaining the competitive position of the United Kingdom;

the need to minimise the adverse effects on competition that may arise from anything done in the discharge of those functions;

the desirability of facilitating competition in relation to the issuance of electronic money and the provision of payment services; and

the desirability of enhancing the understanding and knowledge of members of the public of financial matters (including the United Kingdom financial system).

persons on whom requirements are imposed by or under Part 2, 3 or 4 of these Regulations are complying with them;

there has been any contravention of regulation 63(1), 64(1) or 66(1) or (2).

an electronic money issuer who has contravened a requirement imposed on it by or under these Regulations; or

a person who has contravened regulation 63(1), 64(1) or 66(1) or (2).

suspend, for such period as it considers appropriate, the institution's authorisation or, as the case may be, registration; or

impose, for such period as it considers appropriate, such limitations or other restrictions in relation to the carrying on of electronic money issuance or payment services business by the institution as it considers appropriate.

withdraw a suspension or restriction; or

vary a suspension or restriction so as to reduce the period for which it has effect or otherwise to limit its effect.

paragraph (1)(a) and (b) of this regulation; and

regulations 50 and 51,

to publish a statement under regulation 50;

to impose a penalty under regulation 51; or

to suspend an institution's authorisation or registration or impose a restriction under regulation 52,

in respect of the imposition of penalties under regulation 51 as they apply in respect of the imposition of penalties under Part 14 of the 2000 Act (disciplinary measures); and

in respect of the imposition of a suspension or restriction under regulation 52 as they apply in respect of the imposition of a suspension or restriction under that Part of that Act.

that there is a reasonable likelihood that any person will contravene a requirement imposed by or under these Regulations; or

that any person has contravened such a requirement and that there is a reasonable likelihood that the contravention will continue or be repeated,

that any person has contravened a requirement imposed by or under these Regulations; and

that there are steps which could be taken for remedying the contravention,

contravened a requirement imposed by or under these Regulations; or

been knowingly concerned in the contravention of such a requirement,

profits have accrued to the person concerned as a result of the contravention; or

one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.

in a case within sub-paragraph (a) of paragraph (1), to the profits appearing to the Authority to have accrued;

in a case within sub-paragraph (b) of that paragraph, to the extent of the loss or other adverse effect;

in a case within both of those sub-paragraphs, to the profits appearing to the Authority to have accrued and to the extent of the loss or other adverse effect.

to whom the profits mentioned in paragraph (1)(a) are attributable; or

who has suffered the loss or adverse effect mentioned in paragraph (1)(b).

state the amount that the person concerned is to pay or distribute;

identify the person or persons to whom that amount is to be paid or among whom that amount is to be distributed; and

state the arrangements in accordance with which the payment or distribution is to be made.

profits have accrued to the electronic money issuer as a result of the contravention; or

one or more persons have suffered loss or been otherwise adversely affected as a result of the contravention.

in a case within sub-paragraph (a) of paragraph (1), to the profits appearing to the court to have accrued;

in a case within sub-paragraph (b) of that paragraph, to the extent of the loss or other adverse effect;

in a case within both those sub-paragraphs, to the profits appearing to the court to have accrued and to the extent of the loss or other adverse effect.

to whom the profits mentioned in paragraph (1)(a) are attributable; or

who has suffered the loss or adverse effect mentioned in paragraph (1)(b).

establishing whether any and, if so, what profits have accrued to them as mentioned in sub-paragraph (a) of that paragraph;

establishing whether any person or persons have suffered any loss or adverse effect as mentioned in sub-paragraph (b) of that paragraph; and

determining how any amounts are to be paid or distributed under paragraph (3).

section 1B(5)(a) of the 2000 Act (the FCA’s general duties) does not apply to the making of rules under paragraph 23 of Part 3 of Schedule 1ZA by virtue of this regulation;

rules made under paragraph 23 of Part 3 of Schedule 1ZA by virtue of this regulation are not to be treated as regulating provisions for the purposes of section 140A(1) of the 2000 Act (competition scrutiny);

paragraph 23(7) does not apply.

specify the time when any payment is required to be made to the Treasury, and

require the Authority to provide the Treasury at specified times with information relating to penalties that the Authority has imposed under regulation 51.

the operation of these Regulations;

any matters relating to the functions of the Authority under these Regulations;

any other matters about which it appears to the Authority to be desirable to give information or advice in connection with these Regulations.

publish its guidance;

offer copies of its published guidance for sale at a reasonable price;

if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.

an authorised electronic money institution;

a small electronic money institution;

an EEA authorised electronic money institution exercising its passport rights;

a credit institution authorised in the UK or exercising an EEA right in accordance with Part 2 of Schedule 3 to the 2000 Act (exercise of passport rights by EEA firms) M25;

the Post Office Limited;

the Bank of England, the European Central Bank or a national central bank of an EEA state other than the United Kingdom;

a government department or local authority;

a credit union;

a municipal bank; or

the National Savings Bank.

on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding level 5 on the standard scale, or both;

on conviction on indictment, to imprisonment for a term not exceeding two years, or to a fine, or both.

describe themselves (in whatever terms) as a person falling within any of those sub-paragraphs; or

behave, or otherwise hold themselves out, in a manner which indicates (or which is reasonably likely to be understood as indicating) that they are such a person.

provide any information to another person, knowing the information to be false or misleading in a material particular; or

recklessly provide to another person any information which is false or misleading in a material particular,

on summary conviction, to a fine not exceeding level 5 on the standard scale;

on conviction on indictment, to a fine.

to have been committed with the consent or connivance of an officer; or

to be attributable to any neglect on their part,

to have been committed with the consent or connivance of a partner; or

to be attributable to any neglect on their part,

to have been committed with the consent or connivance of an officer; or

to be attributable to any neglect of such officer,

by the Authority; or

by or with the consent of the Director of Public Prosecutions.

section 33 of the Criminal Justice Act 1925 M26 (procedure on charge of offence against corporation) and section 46 of, and Schedule 3 to, the Magistrates' Courts Act 1980 M27 (corporations) apply as they do in relation to a body corporate;

section 70 (of the Criminal Procedure (Scotland) Act 1995 M28 (proceedings against bodies corporate) applies as it does in relation to a body corporate;

section 18 of the Criminal Justice (Northern Ireland) Act 1945 M29 (procedure on charge) and Schedule 4 to the Magistrates' Courts (Northern Ireland) Order 1981 M30 (corporations) apply as they do in relation to a body corporate.

against a body corporate or unincorporated association at any place at which it has a place of business;

against an individual at any place where they are for the time being.

the competent authorities, designated under Article 3 of the electronic money directive, or referred to in Article 13 of that directive, of EEA states other than the United Kingdom;

the European Central Bank, the Bank of England and the national central banks of EEA states other than the United Kingdom; and

any other relevant competent authorities designated under European Union law or the law of the United Kingdom or any other EEA state which is applicable to electronic money issuers,

the bodies mentioned in paragraph (1)(a) and (c);

the European Central Bank, the Bank of England and the national central banks of EEA states other than the United Kingdom when acting in their capacity as monetary and oversight authorities;

where relevant, other public authorities responsible for the oversight of payment and settlement systems,

which is to be taken to have occurred by virtue of regulation 18;

of a requirement imposed by regulation 20, 21, 22 or 24; or

of a requirement imposed by or under Part 5,

will be exclusively for the benefit of the private person; and

cannot be obtained by way of an action brought otherwise than at the suit of the fiduciary or representative.

any individual, except where the individual suffers the loss in question in the course of issuing electronic money or providing payment services; and

any person who is not an individual, except where that person suffers the loss in question in the course of carrying on business of any kind,

has a Part 4 permission in respect of the activity of issuing electronic money;

before 30th April 2011 has carried on that activity in accordance with that permission; and

is not a person mentioned in any of paragraphs (c) to (j) of the definition in regulation 2(1) of electronic money issuer,

notify the Authority whether it wishes to become an authorised electronic money institution or to be registered as a small electronic money institution; and

provide the Authority with such information as it may reasonably require (“the required information”).

if the Authority decides to include the person on the register, the person's authorisation shall cease to be deemed to have been granted by virtue of paragraph (1) at the time of such inclusion;

if the Authority decides not to include the person on the register, the person's authorisation shall cease to be so deemed when the period for a reference to the Upper Tribunal has elapsed without a reference being made or, if the matter is referred, at such time as the Tribunal may direct.

notifies the Authority before 1st July 2011 that it does not wish to be an electronic money institution; or

fails to make by that date a notification in accordance with paragraph (2)(a),

give the person notice of its decision; and

update the register as soon as practicable.

it has not received the required information before 1st July 2011;

any of the conditions in regulation 6(3) to (8) or, as the case may be, regulation 13(3) to (10) (“the required conditions”) is not met in respect of that person; or

it appears to the Authority that the person is unlikely to issue electronic money within 12 months beginning with 1st July 2011.

if it decides not to include the person on the register, give the person a decision notice; or

if it decides to include the person on the register, give the person notice of its decision.

the duty to which the Authority is subject under regulation 4(1) to maintain a register shall not apply in respect of it; and

Parts 3 and 4 shall not apply to it.

in the case of a person falling within paragraph (3)(a), on 30th April 2011 or, if later, at the time of the person's inclusion on the register as an electronic money institution;

in the case of a person falling within paragraph (3)(b), at the time at which the person's authorisation ceases to be deemed to have been granted;

in the case of a person falling within paragraph (4), on 30th October 2011.

immediately before 30th April 2011 is an electronic money institution;

is an EEA firm qualifying for authorisation under Schedule 3 to the 2000 Act M36 in respect of the activity of issuing electronic money; and

before 30th April 2011 has carried on that activity,

has a certificate (which has not been revoked) given by the Authority under article 9C of the Financial Services and Markets 2000 (Regulated Activities) Order 2001 M38 (“the Order”); and

before 30th April 2011 has carried on the activity of issuing electronic money in accordance with that certificate,

provides for a termination date up to two years after the date on which the contract was entered into; and

does not provide that the means of storing electronic money can be recharged.

29th October 2011 in the case of a person falling within regulation 75(1);

29th April 2011 otherwise.