Search Legislation

The Electronic Money Regulations 2011

Changes to legislation:

The Electronic Money Regulations 2011 is up to date with all changes known to be in force on or before 28 May 2022. There are changes that may be brought into force at a future date. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.

  1. Introductory Text

  2. PART 1 INTRODUCTORY PROVISIONS

    1. 1.Citation and commencement

    2. 2.Interpretation

    3. 3.Electronic money: exclusions

    4. 3A.Notification of use of limited network exclusion

    5. 3B.Notification of use of electronic communications exclusion

  3. PART 2 REGISTRATION

    1. The register

      1. 4.The register of certain electronic money issuers

    2. Authorisation

      1. 5.Application to become an authorised electronic money institution or variation of an existing authorisation

      2. 6.Conditions for authorisation

      3. 7.Imposition of requirements

      4. 8.Variation etc at request of an authorised electronic money institution

      5. 9.Determination of application for authorisation or variation of authorisation

      6. 10.Cancellation of authorisation

      7. 11.Variation of authorisation on Authority's own initiative

    3. Registration as a small electronic money institution

      1. 12.Application for registration as a small electronic money institution or variation of an existing registration

      2. 13.Conditions for registration

      3. 14.Average outstanding electronic money

      4. 15.Supplementary provisions

      5. 16. Application for authorisation if requirements cease to be met

    4. Common provisions

      1. 17.Duty to notify changes

      2. 18.Electronic money institutions acting without permission

  4. PART 3 PRUDENTIAL SUPERVISION ...

    1. Capital requirements

      1. 19.Capital requirements

    2. Safeguarding

      1. 20.Safeguarding requirements

      2. 21.Safeguarding option 1

      3. 22.Safeguarding option 2

      4. 23.Power of the Authority to exclude assets

      5. 24.Insolvency events (except electronic money institution special administration)

      6. 24A.Insolvency Regulations

      7. 25.Accounting and statutory audit

      8. 26.Outsourcing

      9. 27.Record keeping

    3. Exercise of passport rights

      1. 28.Notice of intention

      2. 29.Decision following notice of intention

      3. 29A.Notice of intention from an EEA authorised payment institution

      4. 30.Supervision of firms exercising passport rights

      5. 31.Carrying on of Consumer Credit Act business by an EEA authorised electronic money institution

  5. PART 4 ADDITIONAL ACTIVITIES AND USE OF DISTRIBUTORS AND AGENTS

    1. 31A.Record keeping

    2. 32.Additional activities

    3. 33.Use of distributors and agents

    4. 34.Requirement for agents to be registered

    5. 35.Removal of agents from the register

    6. 36.Reliance

    7. 37.Duty to notify change in circumstance

  6. PART 5 ISSUANCE AND REDEEMABILITY OF ELECTRONIC MONEY

    1. 38.Application of Part 5

    2. 39.Issuance and redeemability

    3. 40.Conditions of redemption

    4. 41.Fees for redemption

    5. 42.Amount of redemption

    6. 43.Requests for redemption

    7. 44.Redemption rights of persons other than consumers

    8. 45.Prohibition of interest

    9. 46.Termination of a contract

  7. PART 6 THE AUTHORITY

    1. The functions of the Authority

      1. 47.Functions of the Authority

    2. Supervision and enforcement

      1. 48.Monitoring and enforcement

      2. 49.Reporting requirements

      3. 50.Public censure

      4. 51.Financial penalties

      5. 52.Suspending authorisation etc

      6. 53.Proposal to take disciplinary measures

      7. 54.Injunctions

      8. 55.Power of Authority to require restitution

      9. 56.Proposal to require restitution

      10. 57.Restitution orders

      11. 58.Complaints

    3. Miscellaneous

      1. 59.Costs of supervision

      2. 59A.Credit agreements

      3. 60.Guidance

      4. 61.Authority's exemption from liability in damages

      5. 62.Application and modification of primary and secondary legislation

  8. PART 7 GENERAL

    1. Offences

      1. 63.Prohibition on issuing electronic money by persons other than electronic money issuers

      2. 64.False claims to be an electronic money issuer

      3. 65.Defences

      4. 66.Misleading the authority

      5. 67.Restriction on penalties

      6. 68.Liability of officers of bodies corporate etc

      7. 69.Prosecution

      8. 70.Proceedings against unincorporated bodies

    2. Duties of the Authority and the Commissioners to co-operate

      1. 71.Duty to co-operate and exchange information

    3. Actions for breach of requirements

      1. 72.Right to bring actions

      2. 73.Prohibition on contracting-out

    4. Transitional provisions

      1. 74.Persons with a Part 4 permission

      2. 75.EEA firms

      3. 76.Certified persons

      4. 77.Existing fixed term contracts

      5. 78.Amendments to the banking consolidation directive

      6. 78A.Transitional arrangements for existing electronic money institutions on the implementation of the second payment services directive

    5. Amendments to legislation

      1. 79.Amendments to primary and secondary legislation

    6. Gibraltar

      1. 80.Application to Gibraltar

  9. Signature

    1. SCHEDULE 1

      Information to be included in or with an application for authorisation

      1. 1.A programme of operations, setting out, in particular, the type...

      2. 2.A business plan including a forecast budget calculation for the...

      3. 3.Evidence that the applicant holds initial capital for the purposes...

      4. 4.A description of the measures taken for safeguarding the electronic...

      5. 5.A description of the applicant's governance arrangements and internal control...

      6. 5A.A description of the applicant's procedure for monitoring, handling and...

      7. 5B.A description of the applicant's process for filing, monitoring, tracking...

      8. 5C.A description of the applicant's business continuity arrangements, including a...

      9. 5D.A description of the principles and definitions used by the...

      10. 5E.A statement of the applicant's security policy, including—

      11. 6.A description of the internal control mechanisms which the applicant...

      12. 7.A description of the applicant's structural organisation, including, where applicable,...

      13. 8.In relation to each person holding, directly or indirectly, a...

      14. 9.(1) The identity of directors and persons who are or...

      15. 10.The identity of the auditors of the applicant, if any....

      16. 11.(1) The legal status of the applicant and, where the...

      17. 12.The address of the head office of the applicant.

      18. 13.For the purposes of paragraphs 4, 5 , 5A and...

      19. 14.In the case of an applicant which proposes to provide...

    2. SCHEDULE 2

      Capital Requirements

      1. PART 1 Initial capital

        1. 1.For the purposes of these Regulations “initial capital” comprises one...

        2. 2.An applicant for authorisation as an electronic money institution must...

        3. 3.(1) Where the business activities of an applicant for registration...

      2. PART 2 Own funds

        1. Qualifying items

          1. 4.For the purposes of these Regulations “own funds” means own...

          2. 5.The items specified in paragraph 4(a) to (d) must be—...

          3. 6.Own funds are not to include guarantees provided by the...

        2. ...

          1. 7.The deductions from own funds are— (a) own shares at...

          2. 8.Where shares in another credit institution, financial institution, insurance undertaking,...

        3. Limits on qualifying items

          1. 9.For the purposes of calculating own funds—

          2. 10.The Authority may in temporary and exceptional circumstances direct that...

          3. 11.An electronic money institution must not include in its own...

          4. 12.An authorised electronic money institution that carries on activities other...

        4. Own funds requirement

          1. 13.An authorised electronic money institution must calculate its own funds...

          2. 14.Where a small electronic money institution is required by regulation...

        5. Adjustment by the Authority

          1. 15.The Authority may direct in respect of an authorised electronic...

          2. 16.The Authority may direct in respect of a small electronic...

          3. 17.A direction made under paragraph 15 or 16 must be...

          4. 18.The Authority may make a reasonable charge for making an...

        6. Provision for start-up electronic money institutions

          1. 19.If an electronic money institution has not completed a full...

        7. Method A

          1. 20.(1) “Method A” means the calculation method set out in...

        8. Method B

          1. 21.(1) “Method B” means the calculation method set out in...

        9. Method C

          1. 22.(1) “Method C” means the calculation method set out in...

          2. 23.(1) “Method D” means the calculation method set out in...

          3. 24.(1) Where— (a) an electronic money institution provides payment services...

        10. Application of accounting standards

          1. 25.Except where this Schedule provides for a different method of...

    3. SCHEDULE 2ZA

      Application and modification of the Banking Act 2009

      1. 1.Section 93(4) of the Banking Act 2009 (interpretation: other expressions)...

      2. 2.Section 233 of the Banking Act 2009 (insolvency regulations) applies...

      3. 3.Section 234 of the Banking Act 2009 (regulations: details) applies...

      4. 4.Section 235 of the Banking Act 2009 (regulations: procedure) applies...

      5. 5.Section 236 of the Banking Act 2009 (review) applies as...

      6. 6.For the purposes of the modifications in this Schedule— “...

    4. SCHEDULE 2A

      Credit agreements

      1. PART 1 Prohibitions and restrictions

        1. 1.Power to prohibit the entry into credit agreements

        2. 2.Power to restrict the entry into credit agreements

      2. PART 2 Procedure and appeals

        1. 3.Interpretation

        2. 4.Notice of prohibition or restriction

        3. 5.Application to revoke or vary prohibition or restriction

        4. 6.Notice to the home state competent authority

    5. SCHEDULE 3

      Application and modification of legislation

      1. PART 1 Application and modification of the 2000 Act

        1. 1.Disciplinary powers

        2. 2.The Tribunal

        3. 2A.Authority rules

        4. 3.Information gathering and investigations

        5. 4.Control over electronic money institutions

        6. 4A.Incoming firms: interventions by the Authority

        7. 5.Auditors and actuaries

        8. 6.Restriction on disclosure of information

        9. 7.Insolvency

        10. 8.Warning notices and decision notices

        11. 9.Limitation on powers to require documents

      2. PART 2 Application and modification of secondary legislation

        1. 10.The Financial Services and Markets Act 2000 (Service of Notices) Regulations 2001

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

    6. SCHEDULE 4

      Amendments to primary and secondary legislation

      1. PART 1 Amendments to primary legislation

        1. 1.Consumer Credit Act 1974

        2. 2.The 2000 Act

        3. 3.The Terrorism Act 2000

        4. 4.The Proceeds of Crime Act 2002

        5. 5.The Companies Act 2006

        6. 6.The Counter-Terrorism Act 2008

      2. PART 2 Amendments to secondary legislation

        1. 7.The Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975

        2. 8.The Financial Markets and Insolvency (Settlement Finality) Regulations 1999

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

        4. 10.The Competition Act 1998 (Determination of Turnover for Penalties) Order 2000

        5. 11.The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001

        6. 12.The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

        7. 13.The Enterprise Act 2002 (Merger Fees and Determination of Turnover) Order 2003

        8. 14.The Conduct of Employment Agencies and Employment Business Regulations 2003

        9. 15.The Financial Services (Distance Marketing) Regulations 2004

        10. 16.The Credit Institutions (Reorganisation and Winding Up) Regulations 2004

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

        12. 18.The Pension Protection Fund (Entry Rules) Regulations 2005

        13. 19.The Money Laundering Regulations 2007

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

        15. 21.The Payment Services Regulations 2009

    7. SCHEDULE 5

      Gibraltar

      1. 1.Exercise of market access rights by Gibraltar-based firms

      2. 2.Exercise by authorised electronic money institutions of market access rights in Gibraltar

      3. 2A.References to Gibraltar regulator

      4. 3.Modification of legislation

      5. 4.Firms which have taken action before 13th January 2018

  10. Explanatory Note

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Memorandum

Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

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.
Close

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.

Close

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