The regulated activity of issuing electronic money
The regulated activity of issuing electronic money

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

  • The regulated activity of issuing electronic money
  • Definition
  • Electronic money
  • Part 4A permission for credit institutions, credit unions and municipal banks
  • Government departments, local authorities, the Post Office and the National Savings Bank
  • Persons deemed to have been granted authorisation
  • Issuing electronic money without authorisation: the criminal offence
  • False claims to be an electronic money issuer

Definition

Issuing electronic money is a regulated activity under article 9B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO).

The activity consists of issuing electronic money by:

  1. a credit institution, a credit union or a municipal bank, or

  1. a person who is deemed to have been granted authorisation under regulation 74 of the Electronic Money Regulations 2011, SI 2011/99 (the E-Money Regulations) or who falls within regulation 76(1).

The E-Money Regulations create a separate authorisation and registration regime for issuers of electronic money that are not credit institutions, credit unions or municipal banks, or those deemed to have been granted authorisation as noted above (SI 2011/99, regs 5 and 12). For further information about e-money generally, see E-money—overview.

Electronic money

'Electronic money' means electronically (including magnetically) stored monetary value as represented by a claim on the electronic money issuer which:

  1. is issued on receipt of funds for the purpose of making payment transactions

  2. is accepted by a person other than the electronic money issuer, and

  1. is not excluded by reg 3 of the E-Money Regulations.

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