SCHEDULE 2Amendments of subordinate legislation

PART 1Amendments of Electronic Money Regulations 2011

7.

(1)

Regulation 21 (safeguarding option 1) is amended as follows.

(2)

In paragraph (7)—

(a)

in the definition of “authorised credit institution”, for the words from “or otherwise authorised” to “other than” substitute “ or an approved foreign credit institution (see paragraph (8)), but does not include ”;

(b)

in the definition of “authorised custodian”, omit the words from “or authorised” to the end.

(3)

After paragraph (7) insert—

“(8)

In paragraph (7), “approved foreign credit institution” means—

(a)

the central bank of a State that is a member of the Organisation for Economic Co-operation and Development (“an OECD state”),

(b)

a credit institution that is supervised by the central bank or other banking regulator of an OECD state,

(c)

any credit institution that—

(i)

is subject to regulation by the banking regulator of a State that is not an OECD state,

(ii)

is required by the law of the country or territory in which it is established to provide audited accounts,

(iii)

has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time),

(iv)

has a surplus of revenue over expenditure for the last two financial years, and

(v)

has an annual report which is not materially qualified.”