The regulation of electronic money institutions—essentials
Produced in partnership with DLA Piper
The regulation of electronic money institutions—essentials

The following Financial Services practice note produced in partnership with DLA Piper provides comprehensive and up to date legal information covering:

  • The regulation of electronic money institutions—essentials
  • Background to the second Electronic Money Directive
  • Key requirements under 2EMD
  • HM Treasury 2EMD implementing consultation and responses
  • Other legislation applicable to EMIs
  • Amendments to the EMRs
  • The Financial Services Authority (FSA) consultation and final rules
  • Supervisory approach and guidance
  • Authorisation and registration as EMI
  • Application of FCA Handbook requirements
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

BREXIT: The UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on payment services regulation, see Practice Note: Impact of Brexit: Payment services and electronic money directives—quick guide.

Background to the second Electronic Money Directive

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:

  1. uncertainty over the application of the framework to new business models

  2. excessive prudential requirements, and

  3. 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Electronic Money Directive (2EMD) was adopted by the European Parliament and the Council on 16 September 2009 which repealed the original Electronic Money Directive.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

Popular documents