E-money—passporting, outsourcing and use of distributors and agents
E-money—passporting, outsourcing and use of distributors and agents

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

  • E-money—passporting, outsourcing and use of distributors and agents
  • Cross-border business
  • Passporting rights under 2EMD
  • The need to notify before using a passport
  • Branch passports and/or use of EEA agents or distributors
  • Making changes to information provided
  • Notification process
  • Incoming EEA authorised EMIs
  • Supervision of authorised EMIs using the passport
  • EMI Outsourcing requirements
  • more

Cross-border business

Regulated firms will be familiar with the concept of passport, but it may be a new concept for those coming from outside the financial services industry. Passporting draws on European jurisprudence relating to the freedom to either provide services on a cross-border basis or the freedom to establish a branch in other European Economic Area (EEA) States. Authorised e-money institutions (EMIs) are able to issue, distribute or redeem e-money, or provide payment services, in other EEA States. To do so, they need to go through the passporting process. Likewise, EMIs authorised in another EEA state will need to notify their home state regulator if they wish to engage in the same activities in the UK. For provision of services or setting up a branch outside of the EEA, EMIs will need to consider the impact of relevant local laws. Materials relevant to passporting can be found on the Financial Conduct Authority’s (FCA) passporting webpage and in chapter 6 of the FCA document Payment Services and Electronic Money –Our Approach (FCA Approach Document).

Passporting rights under 2EMD

Passporting is the exercise by a business of its right to carry on activities and services regulated under EU legislation in another EEA State on the basis of authorisation or registration in its home EEA State. The activities may