2002 No. 765
FINANCIAL SERVICES AND MARKETS
BANKS AND BANKING

The Electronic Money (Miscellaneous Amendments) Regulations 2002

Made
Laid before Parliament
Coming into force
Whereas the Treasury are a government department designated1 for the purposes of section 2(2) of the European Communities Act 19722 in relation to measures relating to credit and financial institutions and to the taking of deposits or other repayable funds from the public;

Now therefore the Treasury, in exercise of the powers conferred on them by—

  1. (i)

    section 2(2) of the European Communities Act 1972, and

  2. (ii)
    paragraph 13(1)(b)(iii) of Schedule 3 to, and sections 417(1)3 and 428(3) of, the Financial Services and Markets Act 20004,

hereby make the following Regulations:

Citation and commencement1.

These Regulations may be cited as the Electronic Money (Miscellaneous Amendments) Regulations 2002, and come into force on 27th April 2002.

Amendments to primary legislation

The Companies Act 19852.

(1)

In section 209 of the Companies Act 19855 (interests in shares to be disregarded for purposes of disclosure requirements), at the end of paragraph (b) of subsection (2) insert “which falls within article 1(1)(a) of the banking consolidation directive (within the meaning of that Schedule)”.

(2)

In section 262(1) of that Act6 (minor definitions), in the definition of “credit institution”, for “article 1” substitute “article 1(1)(a)”.

(3)

In section 699A(3) of that Act7 (credit and financial institutions to which the Bank Branches Directive (89/117/EEC) applies), in the definition of “credit institution”, for “article 1” substitute “article 1(1)(a)”.

The Companies (Northern Ireland) Order 19863.

(1)

In Article 217 of the Companies (Northern Ireland) Order 19868 (interests in shares to be disregarded for purposes of disclosure requirements), for sub-paragraph (b) of paragraph (2) substitute—

“(b)

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which falls within article 1(1)(a) of the banking consolidation directive (within the meaning of that Schedule);”.

(2)

In Articles 270(1) (minor definitions)9 and 648A(3) (credit and financial institutions to which the Bank Branches Directive (89/117/EEC) applies)10 of that Order, for the definition of “credit institution” substitute—

““credit institution” means a credit institution as defined in article 1(1)(a) of Directive 2001/12/EC of the European Parliament and of the Council of 20th March 2000 relating to the taking up and pursuit of the business of credit institutions, that is to say an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credit for its own account;”.

The Financial Services and Markets Act 20004.

In paragraph 20(4) of Schedule 11 to the Financial Services and Markets Act 200011 (offers of securities: Euro-securities), for “Article 1” substitute “Article 1(1)(a)”.

Amendments to secondary legislation

The Public Offers of Securities Regulations 19955.

In regulation 2(1) of the Public Offers of Securities Regulations 199512 (interpretation), in the definition of “credit institution”, for “Article 1” substitute “Article 1(1)(a)”.

The Cross-Border Credit Transfers Regulations 19996.

In regulation 2(1) of the Cross-Border Credit Transfers Regulations 199913 (interpretation), in the definition of “credit institution”, for “Article 1” substitute “Article 1(1)(a)”.

The Financial Markets and Insolvency (Settlement Finality) Regulations 19997.

In regulation 2(1) of the Financial Markets and Insolvency (Settlement Finality) Regulations 199914 (interpretation), in the definition of “credit institution”, for “Article 1” substitute “Article 1(1)(a)”.

The Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 20008.

In paragraph 1 of the Schedule to the Competition Act 1998 (Small Agreements and Conduct of Minor Significance) Regulations 200015 (applicable turnover), in the definition of “credit institution”, for “Article 1” substitute “Article 1(1)(a)”.

The Competition Act 1998 (Determination of Turnover for Penalties) Order 20009.

In paragraph 1(1) of the Schedule to the Competition Act 1998 (Determination of Turnover for Penalties) Order 200016 (applicable turnover), in the definition of “credit institution”, for “Article 1” substitute “Article 1(1)(a)”.

The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 200110.

(1)

The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 200117 are amended as follows.

(2)

In regulation 1(2) (interpretation), after the definition of “credit institution” insert—
““electronic money institution” means an electronic money institution as defined in Article 1 of directive 2000/46/EC of the European Parliament and of the Council of 18th September 2000 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions18;”.

(3)

In paragraph (3)(d) of regulation 2 (establishment of branch: contents of consent notice), at the beginning insert “except where the firm is an electronic money institution,”.

(4)

In paragraph (4)(a)(ii) of that regulation, after “credit institution” the first time it occurs insert “(other than an electronic money institution)”.

Tony McNulty
Nick Ainger
Two of the Lords Commissioners of Her Majesty’s Treasury
(This note is not part of the Regulations)

These Regulations make amendments to primary and secondary legislation in consequence of Directive 2000/46/EC of the European Parliament and of the Council of 18th September 2000 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions (OJ L275, 27.10.2000, p. 39); and Directive 2000/28/EC of the European Parliament and of the Council of 18th September 2000 amending Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions (OJ L275, 27.10.2000, p. 37).

The directives provide for electronic money institutions to be treated as credit institutions for some, but not all, purposes. These Regulations amend certain references to “credit institutions” in United Kingdom legislation to provide that they do not include electronic money institutions, but continue to include only undertakings whose business is to receive deposits or other repayable funds from the public and to grant credit for their own account.

The amendments made by regulation 3 to the Companies (Northern Ireland) Order 1986 incidentally update references in that Order to First Council Directive 77/780/EEC which was consolidated and revoked by Directive 2000/12/EC.

Further effect is given to Directives 2000/46/EC and 2000/28/EC by the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 (S.I. 2002/682).