The Ministry of Finance has submitted a bill implementing the E-Money Directive.
The bill will amend the FMSA and make a significant change to the prudential rules for electronic money institutions. The European Commission believes that the prudential requirements for e-money institutions are currently too strict. Accordingly, the prudential rules have been brought into line with the rules for payment institutions. Under the Directive, a credit institution may only carry on a banking business. The definition of credit institution in the FMSA is therefore replaced by "bank". The conditions under which an e-money institution can obtain dispensation are also amended. This should facilitate the entry of newcomers to the electronic money market. The provisions on starting capital and shareholders' equity have also been adjusted and the bill allows e-money institutions to develop other business activities in addition to e-money services.
The definition of electronic money and the scope of the Directive have been clarified in the bill. Both money on a plastic card and electronic money stored on a central server can fall within the scope of the definition. The aim is not to include (internet) bank accounts in the definition of electronic money. Funds issued by an e-money institution are not regarded as deposits and not covered by the deposit guarantee system.
The Directive should have been implemented by 30 April 2011, but the Ministry of Finance will give retroactive effect to the bill. Existing issuers of e-money may base their business operations on the old provisions until 30 October 2011.
Amendment of Decree on Conduct of Business Supervision of Financial Undertakings FMSA
A number of the E-Money Directive's provisions will be temporarily implemented in this Decree. These provisions relate to the obligation of e-money institutions to repay the money at the request of the holder of the e-money. The e-money institutions may not apply a threshold amount. Whether an institution may charge costs depend on the moment that the holder requests repayment.
The amendment of the Decree took effect on 30 June. In anticipation of the definitive implementation of the Directive, the supervisors will, where possible, interpret the Dutch legislation on e-money in conformity with the Directive.