Authorisation, registration, variation and cancellation of electronic money institutions
Authorisation, registration, variation and cancellation of electronic money institutions

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Authorisation, registration, variation and cancellation of electronic money institutions
  • Introduction to the authorisation process for electronic money institutions
  • Types of authorisation and registration
  • The Financial Services Register
  • EEA electronic money institutions
  • Small electronic money institutions—registration process
  • Authorised electronic money institutions
  • Conditions for authorisation
  • Making the application to the FCA
  • Timing of application
  • More...

Introduction to the authorisation process for electronic money institutions

The recast Directive 2007/64/EC, the Electronic Money Directive (2EMD) applied the authorisation requirements of the Directive 2007/64/EC, Payment Services Directive (PSD) by making the necessary changes to apply to electronic money. The 2EMD requirements relating to authorisation are implemented in the UK by the Electronic Money Regulations 2011, SI 2011/99 (EMRs). This Practice Note focuses on authorisation and registration trough the guise of the EMRs. The Payment Services Directive was replaced by the revised Directive (EU) 2015/2366, Payment Services Directive (PSD2) in January 2018. Consequently, a number of amendments were made to the EMRs by the Payment Services Regulations 2017, SI 2017/752 (PSRs 2017). This Practice Note reflects the amendments made to the EMRs by the PSRs 2017.

For more information about PSD2 and the PSRs 2017, see Practice Note Payment Services Directive 2 (PSD2)—essentials Payment Services Directive 2 (PSD2)—timeline and Payment services—overview

Types of authorisation and registration

Under the EMRs, a firm can either be an 'authorised electronic money institution' (authorised EMI) or registered as a 'small electronic money institution' (small EMI). The distinction between these is set out below.

Applicants eligible to be authorised or registered (Eligible Applicants) must be:

  1. a body corporate constituted under the laws of the UK and must have its head office and, where relevant, its registered office in the UK; or

  2. except for

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