The following Financial Services guidance note Produced in partnership with DLA Piper UK LLP provides comprehensive and up to date legal information covering:
The first Electronic Money Directive was implemented in the UK in April 2002 (Directive 2000/46/EC) (EMD).
In October 2008, the European Commission reported that the legal framework set by the first Electronic Money Directive was holding back development of the e-money market. The main causes identified were:
uncertainty over the application of the framework to new business models
excessive prudential requirements, and
inconsistent application of the rules by European Member States
A recast Electronic Money Directive (2EMD) was adopted by the European Parliament and the Council on 16 September 2009 which repealed the original Electronic Money Directive. European Member States were required to transpose the new directive into national law by 30 April 2011. 2EMD applied the authorisation requirements of the Payment Services Directive (Directive 2007/64/EC) (PSD) by making the necessary changes to apply to electronic money. The Payment Services Directive was replaced by the revised Payment Services Directive (Directive (EU) 2015/2366) (PSD2) in January 2018. Consequently, a number of amendments where made to the EMRs by the Payment Services Regulations 2017, SI 2017/752 (PSRs 2017) (see Amendments to the EMRs.
Key requirements introduced by 2EMD include:
Scope of 2EMD and the definition of e-money: Under 2EMD ‘electronic money means electronically (including magnetically) stored monetary value as represented
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