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The Electronic Money Regulations 2011

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Regulation 5(1)

SCHEDULE 1U.K.Information to be included in or with an application for authorisation

1.  A programme of operations, setting out, in particular, the type of electronic money issuance and payment services which are envisaged.U.K.

2.  A business plan including a forecast budget calculation for the first three financial years which demonstrates that the applicant is able to employ appropriate and proportionate systems, resources and procedures to operate soundly.U.K.

3.  Evidence that the applicant holds initial capital for the purposes of regulation 6(3).U.K.

4.  A description of the measures taken for safeguarding the electronic money holders' and payment service users' funds in accordance with regulation 20.U.K.

5.  A description of the applicant's governance arrangements and internal control mechanisms including administrative risk management and accounting procedures, which demonstrates that such arrangements, mechanisms and procedures are proportionate, appropriate, sound and adequate.U.K.

[F15A.  A description of the applicant's procedure for monitoring, handling and following up security incidents and security-related customer complaints, including where appropriate an incidents reporting mechanism which takes account of the notification obligations under regulation 99 of the Payment Services Regulations 2017.]U.K.

Textual Amendments

F1Sch. 1 paras. 5A-5E inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(a) (with reg. 3)

[F15B.  A description of the applicant's process for filing, monitoring, tracking and restricting access to sensitive payment data.]U.K.

Textual Amendments

F1Sch. 1 paras. 5A-5E inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(a) (with reg. 3)

[F15C.  A description of the applicant's business continuity arrangements, including a clear identification of the critical operations, effective contingency plans, and a procedure for regular testing and reviewing of the adequacy and efficiency of such plans.]U.K.

Textual Amendments

F1Sch. 1 paras. 5A-5E inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(a) (with reg. 3)

[F15D.  A description of the principles and definitions used by the applicant in collecting statistical data on performance, transactions and fraud.]U.K.

Textual Amendments

F1Sch. 1 paras. 5A-5E inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(a) (with reg. 3)

[F15E.  A statement of the applicant's security policy, including—U.K.

(a)a detailed risk assessment in relation to the payment services to be provided, including risks of fraud and illegal use of sensitive and personal data, and

(b)a description of—

(i)the applicant's security control and mitigation measures to provide adequate protection to users against the risks identified,

(ii)how such measures ensure a high level of technical security and data protection, including such security and protection for the software and IT systems used by the applicant and any undertakings to which the applicant outsources any part of its operations, and

(iii)where appropriate, the applicant's measures to comply with regulation 98(1) of the Payment Services Regulations 2017, F2...]

Textual Amendments

F1Sch. 1 paras. 5A-5E inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(a) (with reg. 3)

6.  A description of the internal control mechanisms which the applicant has established in order to comply with [F3the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017] and [F4Regulation 2015/847/EU of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds] M1.U.K.

Textual Amendments

Marginal Citations

M1OJ No L 345, 8.12.2006, p.1.

7.  A description of the applicant's structural organisation, including, where applicable, a description of the intended use of agents and branches and [F5the off-site and on-site checks that the applicant undertakes to perform on them at least annually,] a description of outsourcing arrangements, and of its participation in a national and international payment system.U.K.

Textual Amendments

F5Words in Sch. 1 para. 7 inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(b) (with reg. 3)

8.  In relation to each person holding, directly or indirectly, a qualifying holding in the applicant—U.K.

(a)the size and nature of their qualifying holding; and

(b)evidence of their suitability taking into account the need to ensure the sound and prudent management of an electronic money institution.

9.—(1) The identity of directors and persons who are or will be responsible for the management of the applicant and, where relevant, persons who are or will be responsible for the management of the electronic money issuance and payment services activities of the applicant.U.K.

(2) Evidence that the persons described in sub-paragraph (1) are of good repute and that they possess appropriate knowledge and experience to issue electronic money and perform payment services.

10.  The identity of the auditors of the applicant, if any.U.K.

11.—(1) The legal status of the applicant and, where the applicant is a limited company, its articles.U.K.

(2) In this paragraph “articles” has the meaning given in section 18 of the Companies Act 2006 (articles of association).

12.  The address of the head office of the applicant.U.K.

13.  For the purposes of paragraphs 4, 5 [F6, 5A] and 7, a description of—U.K.

(a)the audit arrangements of the applicant; and

(b)the organisational arrangements that the applicant has set up,

with a view to the applicant taking all reasonable steps to protect the interests of its electronic money holders and payment service users and to ensuring continuity and reliability in the performance of the issuance of electronic money and payment services activities.

Textual Amendments

F6Words in Sch. 1 para. 13 inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(c) (with reg. 3)

[F714.  In the case of an applicant which proposes to provide payment initiation services or account information services, the professional indemnity insurance or comparable guarantee which it holds in relation to such services.]U.K.

Textual Amendments

F7Sch. 1 para. 14 inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(29)(d) (with reg. 3)

Regulations 6, 13 and 19

SCHEDULE 2U.K.Capital Requirements

PART 1U.K.Initial capital

1.  For the purposes of these Regulations “initial capital” comprises [F8one or more of the items specified in Article 26(1)(a) to (e) of the capital requirements regulation].U.K.

Textual Amendments

F8Words in Sch. 2 para. 1 substituted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(a) (with reg. 3)

2.  An applicant for authorisation as an electronic money institution must hold an amount of initial capital of at least 350,000 euro.U.K.

3.—(1) Where the business activities of an applicant for registration as a small electronic money institution generate average outstanding electronic money of 500,000 euro or more it must hold an amount of initial capital at least equal to 2% of the average outstanding electronic money of the institution.U.K.

(2) Where the applicant has not completed a sufficiently long period of business to calculate the amount of average outstanding electronic money for the purposes of sub-paragraph (1), the applicant must make an estimate on the basis of projected outstanding electronic money as evidenced by its business plan, subject to any adjustments to that plan which are, or have been, required by the Authority.

PART 2U.K.Own funds

Qualifying itemsU.K.

4.  For the purposes of these Regulations “own funds” means [F9own funds as defined in Article 4(1)(18) of the capital requirements regulation, and are to be calculated in accordance with paragraphs 9 to 12.] U.K.

Textual Amendments

F9Words in Sch. 2 para. 4 substituted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(b) (with reg. 3)

F105.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments

F10Sch. 2 paras. 5-8 and heading omitted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by virtue of The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(c) (with reg. 3)

F106.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Textual Amendments

F10Sch. 2 paras. 5-8 and heading omitted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by virtue of The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(c) (with reg. 3)

F10...U.K.

F107.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

F108.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

Limits on qualifying itemsU.K.

[F119.  For the purposes of calculating own funds—U.K.

(a)the amount of Tier 2 capital must be equal to or less than one third of the amount of Tier 1 capital;

(b)at least 75% of the amount of Tier 1 capital must be in the form of Common Equity Tier 1 capital.]

Textual Amendments

F11Sch. 2 para. 9 substituted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(d) (with reg. 3)

10.  The Authority may in temporary and exceptional circumstances direct that an electronic money institution may exceed one or more of the limits described in paragraph 9(1).U.K.

11.  An electronic money institution must not include in its own funds calculation—U.K.

(a)any item used in an equivalent calculation of own funds by an electronic money institution, authorised payment institution, credit institution, investment firm, asset management company or insurance undertaking in the same group; or

(b)in the case of an electronic money institution which carries on activities other than electronic money issuance or the provision of payment services, any item included in an own funds calculation required by or under any other enactment.

12.  An authorised electronic money institution that carries on activities other than the issuance of electronic money and the provision of payment services related to the issuance of electronic money must not use—U.K.

(a)in its calculation of own funds in accordance with Method A, B or C, any qualifying item included in its calculation of own funds in accordance with Method D;

(b)in its calculation of own funds in accordance with Method D, any qualifying item included in its calculation of own funds in accordance with Method A, B or C.

Own funds requirementU.K.

13.  An authorised electronic money institution must calculate its own funds requirement—U.K.

(a)in accordance with such of Method A, Method B or Method C as the Authority may direct in respect of any activities carried on by the authorised electronic money institution consisting of payment services [F12specified in paragraph 1(a) to (f) of Schedule 1 of the Payment Services Regulations 2017] that are not related to the issuance of electronic money; and

(b)in accordance with Method D in respect of any activities carried on by the authorised electronic money institution that consist of the issuance of electronic money and payment services that are related to the issuance of electronic money.

Textual Amendments

F12Words in Sch. 2 para. 13(a) inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(e) (with reg. 3)

14.  Where a small electronic money institution is required by regulation 19(2) to maintain own funds, it must calculate its own funds requirement as an amount equal to 2% of the average outstanding electronic money of the institution.U.K.

Adjustment by the AuthorityU.K.

15.  The Authority may direct in respect of an authorised electronic money institution that—U.K.

(a)an amount of own funds resulting from a calculation made in accordance with paragraph 13(a) is to be up to 20% higher or up to 20% lower;

(b)an amount of own funds resulting from a calculation made in accordance with paragraph 13(b) is to be up to 20% higher or up to 20% lower; or

(c)the sum of the amounts of own funds resulting from calculations made in accordance with paragraph 13(a) and (b) is to be up to 20% higher or up to 20% lower.

16.  The Authority may direct in respect of a small electronic money institution that an amount of own funds resulting from a calculation made in accordance with paragraph 14 is to be up to 20% higher or up to 20% lower.U.K.

17.  A direction made under paragraph 15 or 16 must be on the basis of an evaluation of the relevant electronic money institution including, if available, and where the Authority considers it appropriate, any risk-management processes, risk loss database or internal control mechanisms of the electronic money institution.U.K.

18.  The Authority may make a reasonable charge for making an evaluation required under paragraph 17.U.K.

Provision for start-up electronic money institutionsU.K.

19.  If an electronic money institution has not completed a full financial year's business, references to a figure for the preceding financial year are to be read as the equivalent figure projected in the business plan provided in the electronic money institution's application for authorisation or registration, subject to any adjustment to that plan required by the Authority.U.K.

Method AU.K.

20.—(1) “Method A” means the calculation method set out in this paragraph.U.K.

(2) The own funds requirement is 10% of the authorised electronic money institution's fixed overheads for the preceding financial year.

(3) If a material change has occurred in an authorised electronic money institution's business since the preceding financial year, the Authority may direct that the own funds requirement is to be a higher or lower amount than that calculated in accordance with sub-paragraph (2).

Method BU.K.

21.—(1) “Method B” means the calculation method set out in this paragraph.U.K.

(2) The own funds requirement is the sum of the following elements multiplied by the scaling factor—

(a)4% of the first 5,000,000 euro of payment volume;

(b)2.5% of the next 5,000,000 euro of payment volume;

(c)1% of the next 90,000,000 euro of payment volume;

(d)0.5% of the next 150,000,000 euro of payment volume; and

(e)0.25% of any remaining payment volume.

(3) “Payment volume” means the total amount of payment transactions that are not related to the issuance of electronic money executed by the authorised electronic money institution in the preceding financial year divided by the number of months in that year.

(4) The “scaling factor” is—

(a)0.5 for an authorised electronic money institution providing a payment service specified in paragraph 1(f) of Schedule 1 to the Payment Services Regulations [F132017];

F14(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)1 for an authorised electronic money institution providing any other payment service [F15specified in paragraph 1(a) to (e) of Schedule 1 to those Regulations].

Textual Amendments

F13Word in Sch. 2 para. 21(4)(a) substituted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(f)(i) (with reg. 3)

F14Sch. 2 para. 21(4)(b) omitted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by virtue of The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(f)(ii) (with reg. 3)

F15Words in Sch. 2 para. 21(4)(c) inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(30)(f)(iii) (with reg. 3)

Method CU.K.

22.—(1) “Method C” means the calculation method set out in this paragraph.U.K.

(2) The own funds requirement is the relevant indicator multiplied by—

(a)the multiplication factor; and

(b)the scaling factor;

subject to the proviso in sub-paragraph (7).

(3) The “relevant indicator” is the sum of the following elements—

(a)interest income;

(b)interest expenses;

(c)gross commissions and fees received; and

(d)gross other operating income.

(4) For the purpose of calculating the relevant indicator—

(a)each element must be included in the sum with its positive or negative sign;

(b)income from extraordinary or irregular items may not be used;

(c)expenditure on the outsourcing of services rendered by third parties may reduce the relevant indicator if the expenditure is incurred from a payment service provider;

(d)the relevant indicator is calculated on the basis of the twelve-monthly observation at the end of the previous financial year;

(e)the relevant indicator must be calculated over the previous financial year; and

(f)audited figures must be used unless they are not available in which case business estimates may be used.

(5) The “multiplication factor” is the sum of—

(a)10% of the first 2,500,000 euro of the relevant indicator;

(b)8% of the next 2,500,000 euro of the relevant indicator;

(c)6% of the next 20,000,000 euro of the relevant indicator;

(d)3% of the next 25,000,000 euro of the relevant indicator; and

(e)1.5% of any remaining amount of the relevant indicator.

(6) “Scaling factor” has the meaning given in paragraph 21(4).

(7) The proviso is that the own funds requirement must not be less than 80% of the average of the previous three financial years for the relevant indicator.

23.—(1) “Method D” means the calculation method set out in this paragraph.U.K.

(2) The own funds requirement in respect of the activity of issuing electronic money and providing payment services that are related to the issuance of electronic money is an amount equal to 2% of the average outstanding electronic money of the authorised electronic money institution.

24.—(1) Where—U.K.

(a)an electronic money institution provides payment services that are not related to the issuance of electronic money or carries out any of the activities referred to in regulation 32(1)(b) to (d) and (2); and

(b)the amount of outstanding electronic money is unknown in advance,

the institution may calculate its own funds requirement on the basis of a representative portion assumed to be used for the issuance of electronic money and payment services related to the issuance of electronic money, provided that such representative portion can be reasonably estimated on the basis of historical data and to the satisfaction of the Authority.

(2) Where an electronic money institution has not completed a sufficiently long period of business to compile historical data adequate to make the calculation under sub-paragraph (1), it must make an estimate on the basis of projected outstanding electronic money as evidenced by its business plan, subject to any adjustments to that plan which are, or have been, required by the Authority.

Application of accounting standardsU.K.

25.  Except where this Schedule provides for a different method of recognition, measurement or valuation, whenever a provision in this Schedule refers to an asset, liability, equity or income statement item, an electronic money institution must, for the purpose of that provision, recognise the asset, liability, equity or income statement item and measure its value in accordance with whichever of the following are applicable for the purpose of the institution's external financial reporting—U.K.

(a)Financial Reporting Standards and Statements of Standard Accounting Practice issued or adopted by [F16the Financial Reporting Council Limited];

(b)Statements of Recommended Practice, issued by industry or sectoral bodies recognised for this purpose by [F16the Financial Reporting Council Limited];

(c)International Financial Reporting Standards and International Accounting Standards issued or adopted by the International Accounting Standards Board;

(d)International Standards on Auditing (United Kingdom and Ireland) issued by the [F17Financial Reporting Council Limited or a predecessor body]; and

(e)the Companies Act 2006.

Textual Amendments

F17Words in Sch. 2 para. 25(d) substituted (1.8.2012) by The Payment Services Regulations 2012 (S.I. 2012/1791), regs. 1(2)(a), 4

Regulation 24A

[F18SCHEDULE 2ZAU.K.Application and modification of the Banking Act 2009

Textual Amendments

1.  Section 93(4) of the Banking Act 2009 (interpretation: other expressions) applies as if—U.K.

(a)the reference to a bank were to an authorised electronic money institution or small electronic money institution;

(b)the reference to an agreement in paragraph (a) were to a contract for electronic money issuance or payment services; and

(c)in the closing words, from “for the purposes” to “the bank” were omitted.

2.  Section 233 of the Banking Act 2009 (insolvency regulations) applies as if—U.K.

(a)references to investment bank insolvency regulations were to electronic money institution insolvency regulations;

(b)references to investment banks were to authorised electronic money institutions and small electronic money institutions;

(c)references to client assets were to relevant funds;

(d)in subsection (3)(c), the reference to clients were to electronic money holders and payment service users; and

(e)in subsection (4)—

(i)references to assets included references to money; and

(ii)in paragraph (b), for “those which an institution undertook to hold for clients” there were substituted “relevant funds”.

3.  Section 234 of the Banking Act 2009 (regulations: details) applies as if—U.K.

(a)references to investment bank insolvency regulations were to electronic money institution insolvency regulations;

(b)references to an investment bank were to an authorised electronic money institution or a small electronic money institution;

(c)in subsection (2)(a), the reference to a trustee of client assets were to a trustee in respect of relevant funds;

(d)in subsection (6)—

(i)references to assets included references to money;

(ii)for sub-paragraphs (a) and (b) there were substituted—

“(a)establishing a mechanism for determining which assets are held in an asset pool;

(b)establishing a mechanism for determining that assets are to be, or not to be, treated as part of an asset pool;

(ba)establishing a mechanism for determining whether an asset pool is sufficient to satisfy all the claims of the electronic money holders or payment service users in question;

(bb)for steps to be taken by the administrator, if it is determined that an asset pool is not sufficient to satisfy all the claims of the electronic money holders or payment service users in question;

(bc)about the constitution of an asset pool;”

(iii)in paragraphs (c) and (f), the references to client assets were to an asset pool; and

(iv)in paragraph (e), “financial” were omitted; and

(e)in subsection (7)(a), the reference to client assets were to relevant funds.

4.  Section 235 of the Banking Act 2009 (regulations: procedure) applies as if—U.K.

(a)references to investment bank insolvency regulations were to electronic money institution insolvency regulations; and

(b)subsections (4), (5) and (6) were omitted.

5.  Section 236 of the Banking Act 2009 (review) applies as if the reference to investment bank insolvency regulations were to electronic money institution insolvency regulations.U.K.

6.  For the purposes of the modifications in this Schedule—U.K.

“relevant funds” has the meaning given to it in—

(a)

regulation 20(1), in the case of funds of a kind mentioned in that provision, or

(b)

regulation 23(1) of the Payment Services Regulations 2017, as applied and modified by regulation 20(6), in the case of funds of a kind mentioned in regulation 20(6); and

“asset pool” has the same meaning as in—

(a)

regulation 24(4), in relation to relevant funds under regulation 20(1), or

(b)

regulation 23(18) of the Payment Services Regulations 2017, in relation to relevant funds under regulation 23(1) of those Regulations, each as applied and modified by regulation 20(6).]

Regulation 59A

F19SCHEDULE 2AU.K.Credit agreements

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19Sch. 2A omitted (31.12.2020) by virtue of The Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1201), reg. 1(3), Sch. 2 para. 20 (with reg. 4, Sch. 3 Pt. 1 and saving for effects of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632, reg. 144(3) (with savings in S.I. 2019/680, reg. 11 (as amended by S.I. 2019/1212, regs. 1(3), 22(3)) (with further transitional provisions in Sch. 3 Pt. 1A as inserted by S.I. 2019/405, regs. 1, 10 and as amended by S.I. 2019/1010, regs. 1(3), 7; S.I. 2019/1212, regs. 1(2), 7 and S.I. 2020/56, regs. 1, 8); 2020 c. 1, Sch. 5 para. 1(1)

Regulation 62

SCHEDULE 3U.K.Application and modification of legislation

PART 1U.K.Application and modification of the 2000 Act

Disciplinary powersU.K.

[F201.  Sections 66 (disciplinary powers) to 70 (statements of policy: procedure) of the 2000 Act apply with the following modifications—

(a)in section 66 omit subsections (3)(aa) to (ac), (3A) to (3D), (5A), (8) and (9); and

(b)for section 66A substitute—

“66A.—(1) For the purpose of action by the FCA, a person is guilty of misconduct if, while a relevant person, the person has been knowingly concerned in

[F21(a)]a contravention of the Electronic Money Regulations 2011 by an electronic money issuer which is an electronic money institution, credit institution, credit union or municipal bank [F22, or

(b)a contravention of a requirement imposed by or under section 312R of the 2000 Act by an electronic money institution.]

[F23(2)  “Relevant person” means—

(a)in relation to subsection (1)(a), any person responsible for the management of the electronic money issuer or, where relevant, any person responsible for the management of electronic money issuance by the electronic money issuer, or

(b)in relation to subsection (1)(b), any person responsible for the management of the electronic money institution or, where relevant, any person responsible for the management of electronic money issuance by the electronic money institution.”]; and

(c)in section 67—

(i)omit subsections (2A), (2B), (5A), (5B), (8) and (9);

(ii)in subsection (1) omit the words from “; and if it proposes” to the end;

(iii)in subsection (4) omit the words from “and if it decides” to the end; and

(iv)in subsection (7) omit the words “and if the regulator decides” to the end.]

Textual Amendments

The TribunalU.K.

2.  M2Part 9 of the 2000 Act (hearings and appeals) applies in respect of references to the Upper Tribunal made under these Regulations as it applies in respect of references to the Upper Tribunal made under that Act, with the following modifications—

(a)in section 133 M3 (proceedings before Tribunal: general provision)—

(i)omit subsection (1)(b) and (c);

(ii)in subsection (2) in the definition of “relevant decision” omit “, (b) or (c)”;

[F24(iia)for subsection (7A) substitute—

“(7A) A reference is a “disciplinary reference” for the purposes of this section if it is in respect of any of the following decisions—

(a)a decision to publish a statement under regulation 50 of the Electronic Money Regulations 2011;

(b)a decision to impose a penalty under regulation 51 of those Regulations;

(c)a decision to suspend or impose a restriction on authorisation under regulation 52 of those Regulations;

(d)a decision to take action under section 66 of the 2000 Act as applied by those Regulations;

(e)a decision to take action under section 345 of the 2000 Act as applied by those Regulations.”;]

(b)in section 133A (decision and supervisory notices, etc)—

(i)in subsection (1) omit “, as a result of section 388(2),”; and

F25(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in section 133B (offences)—

(i)omit subsection (1)(b) and (c); and

(ii)in subsection (4)(a) for “the statutory maximum” substitute “ level 5 on the standard scale ”.

Textual Amendments

F25Sch. 3 para. 2(b)(ii) omitted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 18(4)(a)

Marginal Citations

M2Sections 132 and 137 were repealed by S.I. 2010/22.

M3Substituted, together with sections 133A and 133B, by S.I. 2010/22.

[F26Authority rulesU.K.

2A.—(1) Section 137A of the 2000 Act applies for the purposes of these Regulations as if—

(a)references to authorised persons were references to authorised electronic money institutions [F27and small electronic money institutions];

(b)in subsection (1)—

(i)the reference in paragraph (a) to the carrying on of regulated activities were to the issuance of electronic money, and

(ii)the reference in paragraph (b) to the carrying on of activities which are not regulated activities were to the carrying on of activities in connection with the issuance of electronic money;

F28(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F29(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F30(1A) Section 137B of the 2000 Act (FCA general rules: clients’ money, right to rescind etc) applies as if—

(a)references to authorised persons were references to authorised electronic money institutions and small electronic money institutions;

(b)after subsection (1) there were inserted—

“(1A) Rules relating to the safeguarding of relevant assets held by an authorised electronic money institution, a small electronic money institution or a relevant credit union (“a relevant institution”) may—

(a)make any provision in relation to those relevant assets which might be made under subsection (1) in relation to clients’ money;

(b)treat two or more relevant assets as being part of a single asset pool, and make provision for the distribution of assets in that pool;

(c)authorise the retention by a relevant institution of income or capital gains accruing in relation to relevant assets;

(d)make provision as to the distribution of such income or capital gains which are not to be retained by the relevant institution.”;

(c)in subsection (2) the references to “clients’ money” and “money” were read as including a reference to relevant assets;

(d)after subsection (3), there were inserted—

“(3A) “Relevant assets” means assets held by a relevant institution to satisfy its obligations to safeguard funds received—

(a)in exchange for electronic money that has been issued, or

(b)where no electronic money has been issued—

(i)from, or for the benefit of, a payment service user for the execution of a payment transaction, or

(ii)from a payment service provider for the execution of a payment transaction on behalf of a payment service user,

including proceeds derived from the realisation of such assets.

(3B) Assets which may be “relevant assets” include—

(a)money;

(b)insurance policies, including rights arising under those policies;

(c)guarantees, including rights arising under those guarantees;

(d)other investments, whether or not specified by the Treasury under section 22 of the 2000 Act.

(3C) A “relevant credit union” means a credit union which issues electronic money.

(3D) In paragraph (1A)(b), “asset pool” means a collection of assets collectively owned by those persons whose funds the relevant institution is required to safeguard, and in which the relevant institution may also have an interest.”.

(1B) Section 137P (control of information rules) of the 2000 Act applies as if—

(a)references to authorised persons were references to authorised electronic money institutions and small electronic money institutions;

(b)the reference to “Either regulator” were read as a reference to the FCA.]

(2) Sections 137T (general supplementary powers) and 141A (power to make consequential amendments of references to rules) and Chapter 2 of Part 9A (rules: modification, waiver, contravention and procedural provisions) of the 2000 Act apply in relation to rules made pursuant to [F31sub-paragraphs (1), (1A) or (1B)] as they do in relation to other rules made by the FCA under [F32sections 137A, 137B and 137P] of the 2000 Act, subject to [F33sub-paragraphs (2A) and (3)].

[F34(2A) Section 138C (evidential provisions) applies as if in that section—

(a)in subsection (1) “by other provisions of this Act” were read as “by or under the Electronic Money Regulations 2011”;

(b)references to “either regulator”, “a regulator”, “that regulator” or to “the regulator making the rule” were read as references to the FCA.]

[F35(3) Section 138D (actions for damages) applies as if in that section—

(a)subsection (1) were omitted;

(b)in subsection (2), the reference to “an authorised person” were a reference to “an authorised payment institution, a small payment institution, a registered account information service provider or an electronic money institution”;

(c)subsection (6) were omitted and “private person” has the meaning given in regulation 72(3) of these Regulations (right to bring actions).]]

Textual Amendments

F26Sch. 3 para. 2A inserted (13.8.2017 for specified purposes, 13.10.2017 for specified purposes, 13.1.2018 in so far as not already in force) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(2)(c)(iii)(3)(f)(i)(6), Sch. 8 para. 5(31)(a) (with reg. 3)

Information gathering and investigationsU.K.

3.  M4Part 11 of the 2000 Act (information gathering and investigations) applies with the following modifications—

(a)in section 165 ([F36Regulator’s] power to require information: authorised persons etc)—

(i)for references to “an authorised person” substitute “ a person mentioned in paragraph (a), (b), F37... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”;

(ii)in subsection (4) for “this Act” substitute “ the Electronic Money Regulations 2011 ”; and

(iii)in subsection (7) omit paragraphs [F38(b), (c) and (d)];

[F39(b)in section 166 (reports by skilled persons)—

(i)in subsection (2), for paragraph (a) substitute—

“(a)a person mentioned in paragraph (a), (b), F40... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 (“A”)”;

(ii)omit subsections (10) and (11);]

[F41(ba)in section 166A (appointment of skilled person to collect and update information), for each reference to an “authorised person” substitute “person mentioned in paragraph (a), (b), F42... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011;]

(c)in section 167 M5 (appointment of persons to carry out general investigations)—

(i)in subsection (1)—

F43(aa). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(bb)in paragraph (a) for “a recognised investment exchange or an authorised person or of an appointed representative” substitute “ a person mentioned in paragraph (a), (b), F44... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”;

(cc)in paragraph (c) for “a recognised investment exchange or an authorised person” substitute “ a person mentioned in paragraph (a), (b), F45... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”;

(ii)in subsection (4)—

(aa)for “in relation to a former authorised person (or appointed representative)” substitute “ in relation to a person who was formerly a person mentioned in paragraph (a), (b), F46... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”;

(bb)in paragraph (a) for “he was an authorised person (or appointed representative)” substitute “ it was a person mentioned in paragraph (a), (b), F47... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”; and

(cc)for paragraph (b) substitute—

“(b)the ownership or control of a person who was formerly a person mentioned in paragraph (a), (b), F48... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 at any time when it was such a person.”;

(iii)in subsection (5) for “regulated activities” substitute “ the activity of issuing electronic money ”; F49...

[F50(iiia)for subsection (5A) substitute—

“(5A) “Investigating authority” means the FCA.”; and]

(iv)omit subsection (6) M6;

(d)M7in section 168 (appointment of persons to carry out investigations in particular cases)—

(i)in subsection (1)—

[F51(aa)before paragraph (b) insert—

“(ab)a person may have contravened any requirement of or imposed under the Electronic Money Regulations 2011[F52or section 312R];

F53( ac). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F53(ad). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .”;]

(bb)in paragraph (b) for “, [F54191F],” to the end substitute “ or 191F or under regulation 63, 64 or 66 of the Electronic Money Regulations 2011. ”;

(ii)for subsection (2) substitute—

“(2) Subsection (3) also applies if it appears to an investigating authority that there are circumstances suggesting that a person may be guilty of an offence under, or has contravened a requirement of, [F55the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017].”;

(iii)omit subsections (4) and (5); and

[F56(iv)for subsection (6), substitute—

“(6) “Investigating authority” means the FCA.”;]

(e)in section 169 (investigations etc in support of overseas regulator)—

(i)in subsection (8) for “Part XXIII” substitute “ sections 348, 349F57... and 352, as applied with modifications by the Electronic Money Regulations 2011 ”; and

(ii)in subsection (13) for “has the same meaning as in section 195” substitute “ means a competent authority designated in accordance with Article 3 of the electronic money directive ”;

(f)in section 170 (investigations: general)—

(i)in subsection (1) omit “or (5)”;

(ii)in subsection (3)(a) omit “or (4)”; and

(iii)for subsection (10) substitute—

“(10) “Investigating authority”, in relation to an investigator, means [F58the FCA].”;

(g)in section 171 M8 (powers of persons appointed under section 167), omit subsections (3A) and (7);

(h)in subsection (4) of section 172 (additional power of persons appointed as a result of section 168(1) or (4)), omit “or (4)”;

(i)in section 174 (admissibility of statements made to investigators)—

(i)in subsection (2) omit “or in proceedings in relation to action to be taken against that person under section 123”;

(ii)in subsection (3)(a) for “398” substitute “ regulation 66 of the Electronic Money Regulations 2011 ”; and

(iii)in subsection (4) omit “or (5)”;

(j)in subsection (8) of section 175 (information and documents: supplemental provisions) omit “or (5)”;

(k)in section 176 M9(entry of premises under warrant)—

(i)in subsection (1)—

(aa)omit “the Secretary of State,”; and

(bb)for “the first, second or third” substitute “ the first or second ”;

(ii)in subsection (3)(a) for “an authorised person or an appointed representative” substitute “ a person mentioned in paragraph (a), (b), F59... (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011 ”;

(iii)omit subsection (4);

(iv)in subsection (10) omit “or (5)”;

(v)in subsection (11)(a) omit “87C, 87J,”; and

(l)in subsection (5)(a) of section 177 (offences)—

(i)for “six months” substitute “ three months ”; and

(ii)for “the statutory maximum” substitute “ level 5 on the standard scale ”.

Textual Amendments

Marginal Citations

M4Part 11 was amended by section 18 of, and paragraphs 15, 16 and 17 of Schedule 2 to, the Financial Services Act 2010.

M5Amended by S.I. 2007/126.

M6Subsection (6) was inserted by S.I. 2007/126.

M7Amended by S.I. 2007/126.

M8Amended by S.I.2007/126.

M9Amended by S.I. 2005/1433.

Control over electronic money institutionsU.K.

4.  Part 12 M10 of the 2000 Act (control over authorised persons) applies with the following modifications—

(a)for references to “UK authorised person” substitute “ electronic money institution ”;

[F60(aa)in section 178 for subsection (2A) substitute—

“(2A) In this Part, “the appropriate regulator” means the FCA.”;

(ab)in section 187(2)(b) omit “section 187A(3)(b) or”;

(ac)omit section 187A;]

(b)in section 188 (assessment: consultation with EC competent authorities)—

(i)in subsections (1) and (2) after “home state regulator” insert “ or home state competent authority ”; and

(ii)in subsection (3) after “host state regulator” insert “ or host state competent authority ”;

[F61(ba)in section 191A omit subsection (4A);]

[F62(c)in section 191B (restriction notices)—

(i)omit subsection (2A);

(ii)after subsection (2B) insert—

“(2C) In a restriction notice, the FCA must direct that voting power to which the notice relates is, until further notice, not to be exercisable.”;

(iii)for subsection (3)(b) substitute—

“(b)voting power that has been exercised as a result of the acquisition is void;”;]

[F63(ca)in section 191C omit subsection (2A);

(cb)in section 191D omit subsection (1A);]

(d)after section 191E (requirements for notices under section 191D) insert—

“191EA.    Direction by [F64the FCA]

[F64The FCA] may direct that this Part does not apply in respect of an electronic money institution which carries on business activities other than the issuance of electronic money and payment services.”;

(e)in section 191F (offences) in subsections (8)(a) and (9)(a), for “the statutory maximum” substitute in each case “ level 5 on the standard scale ”;

(f)in section 191G (interpretation), in subsection (1), omit the definition of “UK authorised person”; and

(g)omit section 192 (power to change definitions of control etc.).

Textual Amendments

Modifications etc. (not altering text)

Marginal Citations

M10Sections 178 to 191G were substituted by S.I. 2009/534.

Incoming firms: interventions by the AuthorityU.K.

F654A.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Auditors and actuariesU.K.

5.  Part 22 (auditors and actuaries) applies with the following modifications—

(a)for references to “authorised person” substitute “ electronic money institution ”; F66...

[F67(aa)for references to “appropriate regulator” or “regulator” substitute “FCA”;

(ab)omit all references to “recognised investment exchange”;

[F68(ac)in section 340 (appointment)—

(i)for references to the “regulator making the rules” substitute “FCA”;

(ii)for references to “an authorised person” substitute “an electronic money institution or a person required by regulation 3B of the Electronic Money Regulations 2011 to provide an audit opinion to the FCA”;

(iii)omit subsections (3A), (5A) and (8)(b);

(iv)in subsection (5), omit “(3A) or”;]

(ad)in section 344 omit subsection (4);

(ae)in section 345—

(i)in subsection (2)(a) omit “or any particular class of authorised person;”;

(ii)omit subsection (2)(b);

(iii)in subsection (3)(a), for “FCA-authorised person” substitute “electronic money institution”;

(iv)omit subsection (3)(b), (c) and (d);

(v)omit subsection (4);

(af)omit section 345A;

(ag)in section 345B—

(i)in paragraph (1) omit “or the PRA proposes to act under section 345A(3)”;

(ii)in paragraphs (4) and (7) omit “or the PRA decides to act under section 345A(3)”;

(ah)in section 345C omit “or 345A(4)(b)”;

(ai)in section 345D omit subsections (2) and (9);]

(b)in subsection (1)(a) of section 346 (provision of false or misleading information)—

(i)for “six months” substitute “ three months ”; and

(ii)for “the statutory maximum” substitute “ level 5 on the standard scale ”.

Textual Amendments

Restriction on disclosure of informationU.K.

6.  Sections 348 (restrictions on disclosure of confidential information by [F69FCA, PRA] etc), 349 (exceptions from section 348)F70... and 352M11 (offences) of the 2000 Act apply with the following modifications—

(a)in section 348—

[F71(i)in subsection (2)(b) for the words from “, the PRA” to the end substitute “under the Electronic Money Regulations 2011; and]

(ii)in subsection (3)(a) for “this Act” substitute “ the Electronic Money Regulations 2011 ”;

(iii)in subsection (5)—

(aa)for “this Part”, substitute “ the Electronic Money Regulations 2011 ”;

(bb)omit paragraphs [F72(aa) and (c)];

(cc)in paragraph (e) for “a person mentioned in paragraphs (a) to (c)” substitute “[F73the FCA]”;

[F74(dd)in paragraph (ea) for “a person mentioned in those paragraphs” substitute “the FCA”;

(ee)in paragraph (f) for “a person mentioned in those paragraphs” substitute “the FCA]

[F75(iv)in subsection (6) for paragraphs (a) and (b) substitute “any body or person appointed under regulation 48 of the Electronic Money Regulations 2011”; and]

[F76(b)in section 349—

(i)in subsection (2)(c) omit “or the PRA”;

(ii)omit [F77subsection (3A)].]

Textual Amendments

Marginal Citations

M11Section 352 was amended by section 208 of, and Schedule 26 to, the Criminal Justice Act 2003 (c.44).

InsolvencyU.K.

[F787.  The sections of the 2000 Act mentioned in the first column of the Table apply with any modifications shown in the third column.

SectionSubjectModifications
Generally (for the sections mentioned below)

To be read as if—

(a) references to an authorised person or recognised investment exchange were to an electronic money institution;

(b) references to the appropriate regulator, or to the regulator or a regulator, were to the FCA;

(c) references to creditors included users or holders.

Section 356Powers of FCA to participate in proceedings: company voluntary arrangementsTo be read as if subsections (4) and (5) were omitted.
Section 357Powers of FCA to participate in proceedings: individual voluntary arrangementsTo be read as if subsections (7) and (8) were omitted.
Section 358Powers of FCA to participate in proceedings: trust deeds for creditors in Scotland

To be read as if subsection (6A) were omitted.

Section 359Administration order

To be read as if—

(a) subsection (1)(b) were omitted;

(b) subsection (1)(c) were substituted with—

“(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsection (1A) were omitted;

(d) in subsection (3)(a), the reference to an agreement were to a contract for electronic money issuance or payment services;

(e) subsection (3)(b) and (c) were omitted;

(f) in subsection (4) the definitions of “agreement, “authorised deposit taker”, “authorised reclaim fund” and “relevant deposit” were omitted;

(g) subsection (5) were omitted.

Section 361Administrators duty to report to FCA

To be read as if—

(a) in subsection (2)(a) the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011;

(b) subsection (2)(b) were omitted;

(c) subsection (2A) were omitted;

(d) in subsection (3)(b) the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011.

Section 362Powers of FCA to participate in proceedings

To be read as if—

(a) subsection (1)(b) were omitted;

(b) subsection (1)(c) were substituted with—

“(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsections (7) and (8) were omitted.

Section 362AAdministrator appointed by company or directorsTo be read as if subsection (2B) were omitted.
Section 363Receivership: powers of FCA to participate in proceedings

To be read as if—

(a) subsection (1)(b) were omitted;

(b) subsection (1)(c) were substituted with—

“(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsection (6) were omitted.

Section 364Receiver’s duty to report to FCA

To be read as if—

(a) in subsection (b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”;

(b) in the words after subsection (b), the words from “and,” to the end were omitted.

Section 365Voluntary winding up: powers of FCA to participate in proceedings

To be read as if subsection (8) were omitted.

Section 367Winding-up petitions

To be read as if—

(a) subsection (1)(b) were omitted;

(b) subsection (1)(c) were substituted with—

“(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsection (1A) were omitted;

(d) in subsection (4) for “an agreement” there were substituted “a contract for electronic money issuance or payment services”;

(e) subsection (5) were omitted.

Section 370Liquidator’s duty to report to FCA

To be read as if —

(a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”;

(b) in the words after subsection (1)(b), the words from “and,” to the end were omitted;

(c) in subsection (2)(b), the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011.

Section 371Winding up: powers of FCA to participate in proceedings

To be read as if —

(a) subsection (1)(b) were omitted;

(b) subsection (1)(c) were substituted with—

“(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsections (6) and (7) were omitted.

Section 372Bankruptcy: Petitions

To be read as if —

(a) subsection (1A) were omitted;

(b) in subsections (3) and (4), the reference to agreement, in both places it occurs, were to a contract for electronic money issuance or payment services;

(c) in subsections (2) and (6) the reference to subsection (1A), in each place it occurs, were omitted;

(d) in subsection (7)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(e) subsection (8) were omitted.

Section 373Bankruptcy: insolvency practitioner’s duty to report to FCA

To be read as if —

(a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”;

(b) in the words after subsection (1)(b), the words from “and,” to the end were omitted;

(c) in subsection (1A)(b), the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011.

Section 374Bankruptcy: powers of FCA to participate in proceedings

To be read as if —

(a) in subsection (5)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(b) in subsection (6)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”;

(c) subsections (7) and (8) were omitted.

Section 375Provisions against debt avoidance: right of FCA to apply for an order

To be read as if—

(a) in subsection (1)(a), for the words from “carrying” to the end there were substituted “issuing electronic money (whether or not in contravention of regulation 63(1) of the Electronic Money Regulations 2011);”;

(b) in subsection (1)(b), the reference to a regulated activity carried on were to electronic money issuance services being provided;

(c) subsection (1A) were omitted;

(d) in subsection (2), “or subsection (1A)(b) (as the case may be)” were omitted].

Textual Amendments

Warning notices and decision noticesU.K.

8.  Part 26 of the 2000 Act (notices) applies with the following modifications—

[F79(za)in section 387 (warning notices), omit subsections (1A) and (3A);]

(a)in section 388 (decision notices), [F80omit subsections (1A) and (2)];

(b)in section 390 M12 (final notices)—

(i)omit subsections (6) and (10); and

(ii)in subsection (8) omit “or (6)(c)”;

(c)in section 391 (publication)—

[F81(iza)for subsection (1ZB) substitute—

“(1ZB) A warning notice falls within this subsection if it is given under—

(a)section 67;

(b)section 345B;

(c)regulation 10 of the Electronic Money Regulations 2011 (including regulation 10 as applied by regulation 15 of those Regulations);

(d)regulation 29 of those Regulations;

(e)regulation 35 of those Regulations;

(f)regulation 53 of those Regulations; or

(g)regulation 56 of those Regulations.”;

(izb)omit subsection (6A);]

(i)in subsection (10) for “has the same meaning as in section 395” substitute “ means a notice given under regulation 11(6), (9) or (10)(b) (including as applied by regulation 15) of [F82, or paragraph 4 of Schedule 4A to,] the Electronic Money Regulations 2011 ”; and

(ii)omit subsection (11).

(d)for section 392 M13 (application of sections 393 and 394) substitute—

Sections 393 and 394 apply to—

(a)a warning notice given in accordance with regulations 10(4) (including as applied by regulation 15), 29(2) (in relation to the cancellation of a registration), 35(2), 53(1) or 56(1) of the Electronic Money Regulations 2011;

(b)a decision notice given in accordance with regulations 10(5)(a) (including as applied by regulation 15), 29(3)(a) (in relation to the cancellation of a registration), 35(3)(a), 53(3) or 56(3) of the Electronic Money Regulations 2011.”; and

(e)in section 395 [F83(the FCA’s and PRA’s procedures)] in subsection (13) for “in accordance with” to the end substitute “ under regulation 11(6), (9) or (10)(b) (including as applied by regulation 15) of [F84, or paragraph 4 of Schedule 2A to,] the Electronic Money Regulations 2011. ”.

Textual Amendments

F82Words in Sch. 3 para. 8(c)(i) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 18(4)(c)(i)

F84Words in Sch. 3 para. 8(e) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), arts. 1(3)(4), 18(4)(c)(ii)

Marginal Citations

M12Amended by S.I. 2010/22.

M13Section 392 was amended by sections 24 and 29 of, and Schedule 2 to, the Financial Services Act 2010.

Limitation on powers to require documentsU.K.

9.  Section 413 of the 2000 Act (protected items) applies for the purposes of these Regulations as it applies for the purposes of that Act.

PART 2U.K.Application and modification of secondary legislation

The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001U.K.

10.  The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001 M14 apply to any notice, direction or document of any kind given by or to the Authority under these Regulations as they apply to any notice, direction or document of any kind under the 2000 Act.

Marginal Citations

M14S.I. 2001/1420; a relevant amending instrument is S.I 2005/274.

The Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001U.K.

11.  The Financial Services and Markets Act 2000 (Disclosure of Confidential Information Regulations 2001 M15 apply with the following modifications—

(a)in regulation 2—

(i)in the definition of “ [F85relevant provisions] ” for “and [F86Article 13 of the insurance distribution directive]” substitute “ , [F86Article 13 of the insurance distribution directive] and Article 3 of the electronic money directive insofar as it applies Article 22 of the payment services directive ”;

(ii)after the definition of “ [F87disciplinary proceedings authority] ” insert—

““electronic money directive” means 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;

[F88“electronic money information” means confidential information received by the Authority in the course of discharging its functions as the competent authority under the electronic money directive”]; and

(iii)in paragraph (a) of the definition of “ [F89third country regulatory authority] ” after “of the Act” insert “ or any function conferred under national legislation in implementation of the electronic money directive ”;

(b)in regulation 5(4)(a) and (6)(d) and (e) for “an authorised person, former authorised person or former regulated person” substitute in each case “ an electronic money institution or former electronic money institution ”;

(c)in regulation 8 after paragraph (b) insert—

[F90“(g)]electronic money F91... information.”;

(d)for regulation 9(4) substitute—

“(4) Paragraph (1) does not permit disclosure to the persons specified in the first column in Part 6 of Schedule 1 unless the disclosure is of electronic money F92... information.”;

(e)in regulation 11 after paragraph (d) insert—

“(e)electronic money F93... information.”;

(f)in the second column in Part 1 of Schedule 1, in the list of functions beside—

(i)“An official receiver appointed under section 399 of the Insolvency Act 1986, or an official receiver for Northern Ireland appointed under article 355 of the Insolvency (Northern Ireland) Order 1989”, after paragraph (ii) insert—

“or

(iii)

electronic money issuers or former electronic money issuers”;

(ii)“The [F94Department for the Economy] in Northern Ireland”, after paragraph (c)(ii) insert—

“or

(iii)

electronic money issuers or former electronic money issuers”;

(iii)“The Pensions Regulator”, after paragraph (ii) insert—

“or

(iii)

electronic money issuers or former electronic money issuers”;

(iv)“The Charity Commissioners for England and Wales”, after paragraph (ii) insert—

“or

(iii)

electronic money issuers or former electronic money issuers”; and

(g)in Schedule 1, after Part 5 insert—

“PART 6U.K.
PersonFunctions
The Commissioners for Her Majesty's Revenue and CustomsTheir functions under the Money Laundering Regulations 2007”

Textual Amendments

Marginal Citations

M15S.I. 2001/2188; relevant amending instruments are S.I. 2003/1473, 2005/3071, 2006/3413 and 2010/2628.

Regulation 79

SCHEDULE 4U.K.Amendments to primary and secondary legislation

PART 1U.K.Amendments to primary legislation

Consumer Credit Act 1974U.K.

1.  In section 25(1C) M16 of the Consumer Credit Act 1974 M17 (licensee to be a fit person), after “credit institutions” insert “ (as that Annex was last amended by Directive 2009/111/EC) ”.

Marginal Citations

M16Section 25(1C) was inserted by S.I. 2001/3649 and amended by S.I. 2006/3221 and 2007/126.

The 2000 ActU.K.

2.—(1) The 2000 Act is amended as follows.

(2) In Part 14 (disciplinary measures), in section 206A(2)(suspending permission to carry on regulated activities etc) in the definition of “relevant requirement” omit the word “or” before paragraph (b) and after that paragraph insert—

“(c)by the Payment Services Regulations 2009; or

(d)by the Electronic Money Regulations 2011. ”.

(3) In Part 16 (the ombudsman scheme)—

(a)in section 226(2)(b) M18 (compulsory jurisdiction), after “authorised person,” insert “ or an electronic money issuer within the meaning of the Electronic Money Regulations 2011 ”; and

(b)in section 234(1) M19 (industry funding), after “class of authorised person” insert “ , any electronic money issuer within the meaning of the Electronic Money Regulations 2011 ”.

(4) In Part 28 (miscellaneous)—

(a)in section 404(2)(consumer redress schemes) M20, as substituted by section 14 of the Financial Services Act 2010, omit the word “or” before paragraph (b) and at the end of that paragraph insert—

“or

(c)electronic money issuers.”;

(b)in section 404E (meaning of “consumers”)—

(i)in subsection (2) omit the word “or” before paragraph (f) and at the end of that paragraph insert—

“or

(g)electronic money issuers in issuing electronic money.”; and

(ii)in subsection (6), after the definition of “engage in any investment activity” insert—

““electronic money” has the same meaning as in the Electronic Money Regulations 2011 and any reference to issuing electronic money must be read accordingly;”.

(5) In section 404F (other definitions etc)—

(i)after subsection (6) insert—

“(6A) References in sections 404 and 404E to an “electronic money issuer” are references to a person mentioned in paragraph (a), (b), (c), (d), (h) or (i) of the definition of “electronic money issuer” in regulation 2(1) of the Electronic Money Regulations 2011.”; and

(ii)in subsection (8), in paragraph (a) omit the word “or” before paragraph (b) and at the end of that paragraph insert—

“or

(c)the variation under regulation 8 or 11 of the Electronic Money Regulations 2011 of an authorisation under those regulations.”.

(6) In paragraph 12 of Schedule 1A (further provision about the consumer financial education body) M21—

(a)in the cross heading preceding paragraph 12 for “or payment service providers” substitute— “ , payment service providers or electronic money issuers ”;

(b)in sub-paragraph (1)(a) after “authorised persons” insert “ , electronic money issuers ”;

(c)in sub-paragraph (1)(b) after “authorised person” insert “ , electronic money issuer ”; and

(d)after sub-paragraph (4) insert—

“(4A) “Electronic money issuer” means a person who is an electronic money issuer for the purposes of the Electronic Money Regulations 2011 as a result of falling within any of paragraphs (a) to (e) and (h) to (j) of the definition in regulation 2(1).”.

(7) In paragraph 8(6) of Schedule 11A (transferable securities) M22 for “4(1)(a)” substitute “ 4(1) ”.

(8) In paragraph 13(4) of Schedule 17 (the ombudsman scheme) M23, after “an authorised person,” insert “ an electronic money issuer within the meaning of the Electronic Money Regulations 2011 ”.

Marginal Citations

M18Section 226(2)(b) was amended by S.I. 2009/209.

M19Section 234(1) was amended by S.I. 2009/209.

M20Section 404, together with sections 404A to 404G, was substituted by section 14 of the Financial Services Act 2010 (c.28).

M21Schedule 1A was inserted by Schedule 1 to the Financial Services Act 2010.

M22Schedule 11A was inserted by S.I. 2005/1433.

M23Paragraph 13(4) of Schedule 17 was amended by S.I. 2009/209.

The Terrorism Act 2000U.K.

3.  In the Terrorism Act 2000 M24—

(a)in Part 1 of Schedule 3A (regulated sector) M25 —

(i)in paragraph 1(1)(b), for “and 14” substitute “ , 14 and 15 ”;

(ii)in paragraph 1(2)(a), for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(iii)in paragraph 3(1), at the end of the definition of “Banking Consolidation Directive” insert “ as last amended by Directive 2009/111/EC ”;

(b)in paragraph 6(1) of Schedule 6 (financial information)—

(i)in sub-paragraph (g), after “credit institutions” insert “ as last amended by Directive 2009/111/EC ”;

(ii)omit the word “and” at the end of sub-paragraph (h) and after that sub-paragraph insert—

“(ha)an electronic money institution within the meaning of Directive 2009/110/EC of the European Parliament and of the Council of 16th September 2009 relating to the taking up, pursuit and prudential supervision of the business of electronic money institutions, and”; and

(iii)in sub-paragraph (h), for “and 14” substitute “ , 14 and 15 ”.

Marginal Citations

M25Schedule 3A was inserted by the Anti-terrorism, Crime and Security Act 2001 (c.24), section 3, Schedule 2, paragraphs 5 and 6.

The Proceeds of Crime Act 2002U.K.

4.  In Part 1 of Schedule 9 to the Proceeds of Crime Act 2002 M26 (regulated sector) —

(a)in paragraph 1(1)(b), for “and 14” substitute “ , 14 and 15 ”;

(b)in paragraph 1(2)(a), for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(c)in paragraph 3(1), at the end of the definition of “the Banking Consolidation Directive” insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M262002 c.29. Part 1 of Schedule 9 was substituted by S.I. 2007/3287.

The Companies Act 2006U.K.

5.  In the Companies Act 2006 M27—

(a)in section 1173(1) (minor definitions: general), in the definition of “credit institution”—

(i)for “Article 4.1(a)” substitute “ Article 4.1 ”; and

(ii)at the end insert “ as last amended by Directive 2009/111/EC ”; and

(b)in section 1210(3) (meaning of “statutory auditor” etc.), in paragraph (a) of the definition of “bank”—

(i)for “Article 4.1(a)” substitute “ Article 4.1 ”; and

(ii)at the end insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

The Counter-Terrorism Act 2008U.K.

6.  In Part 2 of Schedule 7 to the Counter-Terrorism Act 2008 M28 (terrorist financing and money laundering) —

(a)in paragraph 5(1)(a), for “Article 4(1)(a)” substitute “ Article 4(1) ”;

(b)in paragraph 5(2)(a), for “and 14” substitute “ , 14 and 15 ”; and

(c)in paragraph 7, at the end of the definition of “the banking consolidation directive” insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

PART 2U.K.Amendments to secondary legislation

The Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975U.K.

7.  The Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 M29 is amended as follows—

(a)in article 2(1), after the definition of “director” insert—

““electronic money institution” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;”;

(b)in article 3(g), in the table, at the end insert—

“17A director or manager responsible for the management of the electronic money or payment services business of an electronic money institution.The Financial Services Authority.
18A controller of an electronic money institution.The Financial Services Authority.”;

(c)omit the word “or” before sub-paragraph (xii) of article 4(d) and after that sub-paragraph insert—

“(xiii)to refuse an application for registration as an authorised electronic money institution or a small electronic money institution under the Electronic Money Regulations 2011, or

(xiv)to vary or cancel such registration (or to refuse to vary or cancel such registration) or to impose a requirement under regulation 7 of those Regulations,”.

Marginal Citations

M29S.I. 1975/1023; amended by S.I. 1986/2268; S.I. 2001/3816 and 2007/2149.

The Financial Markets and Insolvency (Settlement Finality) Regulations 1999U.K.

8.  In regulation 2(1) of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 M30 in the definition of “credit institution”—

(a)for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(b)after “business of credit institutions” insert “ (as last amended by Directive 2009/111/EC) ”.

Marginal Citations

M30S.I. 1999/2979; a relevant amending instrument is S.I.2006/3221.

The Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 2000U.K.

9.  In paragraph 1 of the Schedule to the Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 2000 M31—

(a)in the definition of “credit institution”—

(i)for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(ii)at the end insert “ as last amended by Directive 2009/111/EC ”; and

(b)in the definition of “financial institution” at the end insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M31S.I. 2000/262; relevant amending instruments are S.I. 2006/3221 and 2000/2952.

The Competition Act 1998 (Determination of Turnover for Penalties) Order 2000U.K.

10.  In paragraph 1(1) of the Schedule to the Competition Act 1998 (Determination of Turnover for Penalties) Order 2000 M32—

(a)in the definition of “credit institution”—

(i)for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(ii)at the end insert “ as last amended by Directive 2009/111/EC ”; and

(b)in the definition of “financial institution” at the end insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M32S.I. 2000/309; relevant amending instruments are S.I. 2006/3221 and 2000/952.

The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001U.K.

11.  The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001 M33 are amended as follows—

(a)in regulation 1(2) omit the definition of “electronic money institution”;

(b)in regulation 2(3)(d) omit “except where the firm is an electronic money institution,”; and

(c)in regulation 2(4)(a)(ii) omit “(other than an electronic money institution)”.

Marginal Citations

M33S.I.2001/2511; a relevant amending instrument is S.I. 2002/765.

The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001U.K.

12.  The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M34 is amended as follows—

(a)in article 3(1)—

(i)in the definition of “credit institution” after “banking consolidation directive” insert “ (as last amended by Directive 2009/111/EC) ”;

(ii)for the definition of “electronic money” substitute—

““electronic money” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;”;

(b)in article 9AB—

(i)in paragraph (1), for “or a small payment institution” substitute “ , a small payment institution, an electronic money institution or an EEA authorised electronic money institution ”; and

(ii)in paragraph (2), at the end insert—

“and “electronic money institution” and “EEA authorised electronic money institution” have the meanings given in the Electronic Money Regulations 2011.”

(c)in article 9B after “money” insert—

“by—

(a)

a credit institution, a credit union or a municipal bank; or

(b)

a person who is deemed to have been granted authorisation under regulation 74 of the Electronic Money Regulations 2011 or who falls within regulation 76(1) of those Regulations,”;

(d)after 9B insert—

“9BA.  Articles 9C to 9I and 9K apply only in the case of a person falling within regulation 76(1) of the Electronic Money Regulations 2011.”;

(e)omit article 9L.

Marginal Citations

M34S.I. 2001/544; relevant amending instruments are S.I. 2002/682, 2002/1776 and 2009/209.

The Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003U.K.

13.  In paragraph 1 of the Schedule to the Enterprise Act 2002 (Merger Fees and Determination of Turnover ) Order 2003 M35—

(a)at the end of the definition of “credit institution” insert “ as last amended by Directive 2009/111/EC ”; and

(b)at the end of the definition of “financial institution” insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M35S.I. 2003/1370; a relevant amending instrument is S.I. 2006/3221.

The Conduct of Employment Agencies and Employment Business Regulations 2003U.K.

14.  In regulation 25(1) of the Conduct of Employment Agencies and Employment Business Regulations 2003 M36, in the definition of “credit institution”—

(a)for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(b)after “business of credit institutions” insert “ (as last amended by Directive 2009/111/EC) ”.

Marginal Citations

M36S.I. 2003/3319; a relevant amending instrument is S.I. 2006/3221.

The Financial Services (Distance Marketing) Regulations 2004U.K.

15.  In regulation 17(2)(c) of the Financial Services (Distance Marketing) Regulations 2004 M37 after “electronic money by” insert “ an electronic money institution within the meaning of the Electronic Money Regulations 2011 or ”.

Marginal Citations

The Credit Institutions (Reorganisation and Winding Up) Regulations 2004U.K.

16.  In regulation 2(1) of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 M38, at the end of the definition of “banking consolidation directive” insert “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M38S.I. 2004/1045; a relevant amending instrument is S.I. 2006/3221.

The Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 2004U.K.

17.  In article 2(1) of the Building Societies Act 1986 (Modification of the Lending Limit and Funding Limit Calculations) Order 2004 M39, in the definition of “credit institution”—

(a)omit “the first sub-paragraph of”; and

(b)for “as amended” substitute “ as last amended by Directive 2009/111/EC ”.

Marginal Citations

M39S.I. 2004/3200; a relevant amending instrument is S.I. 2006/3221.

The Pension Protection Fund (Entry Rules) Regulations 2005U.K.

18.  In regulation 1 of the Pension Protection Fund (Entry Rules) Regulations 2005 M40, at the end insert—

“(6) Until 30th April 2011, amendments made to Directive 2006/48/EC of the European Parliament and of the Council by Directive 2009/110/EC of the European Parliament and of the Council shall be disregarded for the purposes of the definition of “EEA credit institution” in paragraph (3).”.

Marginal Citations

M40S.I. 2005/590; relevant amending instruments are S.I. 2009/451 and 2010/2628.

The Money Laundering Regulations 2007U.K.

19.  The Money Laundering Regulations 2007 are amended as follows—

(a)in regulation 2(1) for the definition of “the electronic money directive” substitute the following definitions—

““the electronic money directive” means 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;”

““electronic money institution” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;”;

(b)in regulation 3—

(i)in paragraph (2)(a) for “Article 4(1)(a)” substitute “ Article 4(1) ”; and

(ii)in paragraph (3)(a) for “and 14” substitute “ , 14 and 15 ”;

(c)in regulation 13(7)(d)—

(i)in the opening words for “Article 1(3)(b)” substitute “ Article 2(2) ”;

(ii)in paragraph (i) for “150 euro” substitute “ 250 euro or, in the case of electronic money used to carry out payment transactions within the United Kingdom, 500 euro ”; and

(iii)in paragraph (ii) for “by the bearer” to the end substitute—

“by the electronic money holder (within the meaning of Article 11 of the electronic money directive).”;

(d)in regulation 17(5) M41 after “those Regulations” insert—

“; and

(c)

any electronic money institution or EEA authorised electronic money institution (within the meaning of the Electronic Money Regulations 2011) which provides payment services mainly falling within paragraph 1(f) of Schedule 1 to the Payment Services Regulations 2009”;

(e)in regulation 20 after paragraph (5) insert—

“(5A) A relevant person who is an issuer of electronic money must appoint an individual to monitor and manage compliance with, and the internal communication of, the policies and procedures relating to the matters referred to in paragraph (1)(a) to (e), and in particular to—

(a)identify any situations of higher risk of money laundering or terrorist financing;

(b)maintain a record of its policies and procedures, risk assessment and risk management including the application of such policies and procedures;

(c)apply measures to ensure that such policies and procedures are taken into account in all relevant functions including in the development of new products, dealing with new customers and in changes to business activities; and

(d)provide information to senior management about the operation and effectiveness of such policies and procedures at least annually.”;

(f)in regulation 23(1)(a) after paragraph (iii) insert—

“(iv)electronic money institutions;”;

(g)in regulation 49A(1) M42, after “Payment Services Regulations 2009” insert “ or the Electronic Money Regulations 2011 ”; and

(h)in Schedule 1—

(i)in the heading, for “and 14” substitute “ , 14 and 15 ”; and

(ii)at the end insert—

“15. Issuing electronic money.”.

Marginal Citations

M41Regulation 17(5) was substituted by S.I. 2009/209.

M42Regulation 49A was inserted by S.I. 2009/209.

Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008U.K.

20.  In the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 M43, in regulations 32 and 47, in the definitions of “e-money issuer” (in the modifications to the Companies Act 2006), after “a person” insert “ who is registered as an authorised electronic money institution or a small electronic money institution within the meaning of the Electronic Money Regulations 2011 or ”.

Marginal Citations

The Payment Services Regulations 2009U.K.

21.  The Payment Services Regulations 2009 M44 are amended as follows—

(a)in regulation 2(1)—

(i)in the definition of “the banking consolidation directive”, at the end insert “ as last amended by Directive 2009/111/EC ”;

(ii)in the definition of “credit institution”, for “Article 4(1)(a)” substitute “ Article 4(1) ”;

(iii)for the definition of “the electronic money directive” substitute—

““the electronic money directive” means 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;”;

(iv)in the definition of “electronic money institution”, for “Article 1(3)(a)” substitute “ Article 2(1) ”; and

(v)in the definition of “funds”, for “Article 1(3)(b)” substitute “ Article 2(2) ”;

(b)in regulation 13(4)(e), after “these Regulations” insert “ or the Electronic Money Regulations 2011 ”;

(c)in regulation 53(3), for “Article 1(3)(b)” substitute “ Article 2(2) ”; and

(d)in regulation 110(1) M45, for sub-paragraph (e) substitute—

“(e)an electronic money institution which for the purposes of the Electronic Money Regulations 2011 is—

(i)registered in the United Kingdom as an authorised electronic money institution or a small electronic money institution; or

(ii)an EEA authorised electronic money institution exercising passport rights in the United Kingdom or treated as such by virtue of regulation 75 of those Regulations;”.

Marginal Citations

M45Regulation 110 was amended by S.I. 2009/2475.

Regulation 80

[F95SCHEDULE 5U.K.Gibraltar

Textual Amendments

Exercise of [F96market access rights] by Gibraltar-based firmsU.K.

1.—(1) These Regulations apply as set out in sub-paragraphs (2) and (3) in relation to a firm which—

(a)has its head office in Gibraltar; and

(b)is authorised in Gibraltar to issue electronic money and provide payment services in accordance with [F97Gibraltar legislation which implemented] the electronic money directive.

[F98(1A) Such a firm is referred to in the following provisions of this Schedule as a Gibraltar-based firm.]

[F99(2) A Gibraltar-based firm is to be treated as having an entitlement, corresponding to the passport right deriving from the electronic money directive that such a firm had immediately before IP completion day, to establish a branch or provide services in the United Kingdom.

(2A) Despite their amendment or revocation by the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018, the provisions of these Regulations listed in sub-paragraph (2B), as they had effect immediately before IP completion day, continue to apply for the purposes of this paragraph.

(2B) The provisions referred to in sub-paragraph (2A) are as follows—

(a)in regulation 2 (interpretation), in paragraph (1), paragraph (c) of the definition of “electronic money issuer”;

(b)in regulation 4 (the register of electronic money issuers), in paragraph (2), the reference to paragraph (c) of the definition of electronic money issuer;

(d)in regulation 21 (safeguarding option 1), paragraph (7);

(e)in regulation 22 (safeguarding option 2), paragraph (3);

(f)regulation 25 (accounting and statutory audit);

(g)regulations 29A and 30 (passporting);

(h)in regulation 34 (requirement for agents to be registered), paragraph (3)(a)(iii);

(i)regulation 59A and Schedule 2A (credit agreements);

(j)regulation 63 (prohibition on issuing electronic money by persons other than electronic money issuers);

(k)in regulation 71 (duty to co-operate and exchange information), paragraph (1);

(l)in Schedule 3 (application and modification of legislation), paragraphs 2A and 3.

(3) In those provisions as applying for the purposes of this paragraph—

(a)references to an “EEA authorised electronic money institution” are to be read as references to the firm;

(b)references to the home state competent authority are to be read as references to the Gibraltar Financial Services Commission;

(c)references to a “passport right” are to be read as references to the entitlement mentioned in sub-paragraph (2);

(d)references to the authorisation of any person as a credit institution, custodian or insurer in accordance with a directive are to be read as a reference to authorisation in accordance with Gibraltar legislation which implemented the directive;

(e)references to a person's rights or entitlements are to be read as references to the rights or entitlements the person would have, if the person's rights or entitlements were being determined immediately before IP completion day.]

Textual Amendments

Exercise by authorised electronic money institutions of [F100market access rights] in GibraltarU.K.

2.—(1) For the purposes of these Regulations, an authorised electronic money institution is to be treated as having an entitlement, corresponding to [F101the passport right that such a firm had immediately before IP completion day,] to establish a branch or provide services in Gibraltar.

[F102(1A) Despite their amendment or revocation by the Electronic Money, Payment Services and Payment Systems (Amendment and Transitional Provisions) (EU Exit) Regulations 2018, the provisions of these Regulations listed in sub-paragraph (1B), as they had effect immediately before IP completion day, continue to apply for the purposes of this paragraph.

(1B) The provisions referred to in sub-paragraph (1A) are as follows—

(a)regulations 28 to 30 (passporting);

(b)in regulation 33 (use of distributors and agents), paragraph (3);

(c)in regulation 34 (requirement for agents to be registered), paragraphs (2), (3), (5A), (10A), (10B) and (12A);

(d)in regulation 37 (duty to notify change in circumstance), paragraph (1)(a);

(c)regulation 71 (duty to co-operate).]

[F103(2) In relation to an authorised electronic money institution which establishes a branch or provides services in Gibraltar, those provisions are to be read as if—

(a)references to an “EEA branch” were references to such a branch;

(b)references to an “EEA State” were references to Gibraltar;

(c)references to the host state competent authority were references to the Gibraltar Financial Services Commission; and

(e)references to a “passport right” were references to the entitlement mentioned in sub-paragraph (1).]

Textual Amendments

[F104References to Gibraltar regulatorU.K.

2A.—(1) The Treasury may by regulations made by statutory instrument make such amendments of the references in paragraphs 1 and 2 to the Gibraltar Financial Services Commission, or any references previously substituted for those references, as appear to the Treasury to be appropriate in order to take account of any change in the law of Gibraltar.

(2) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.]

Textual Amendments

Modification of legislationU.K.

F1053.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Firms which have taken action before 13th January 2018U.K.

4.  Where an authorised electronic money institution or the Authority has taken action before 13th January 2018 under regulation 28, 29 or 34 in respect of the provision of services, the use of an agent or the establishment of a branch in Gibraltar by that authorised electronic money institution, such action is to be treated as if it had been taken under such regulations as they apply by virtue of paragraph 2.]

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Impact Assessments

Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
  • The main options the government is considering, and which one is preferred;
  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.
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Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

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More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as made version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources