Treasury has now made the Electronic Money Regulations 2011. The Regulations:

  • are effective from 9 February 2011 for the purposes of making applications for authorisation, registration and similar matters, and effective from 30 April otherwise;
  • require FSA to maintain a register of authorised e-money institutions (ELMIs), small ELMIs and agents of ELMIs;
  • set capital requirements (the greater of €350,000 or own funds requirement calculated in accordance with the Regulations);
  • set safeguarding requirements;
  • contain passporting provisions;
  • set out additional activities that ELMIs are permitted to do;
  • set rules on issuance and redeemability of e-money;
  • give FSA various powers;
  • make it an offence for any person that is not an authorised/small ELMI, passported EEA ELMI or appropriately authorised credit institution (and a few others) to issue e-money in the UK; and
  • set transitional provisions for firms with current e-money permissions.  

FSA has not yet made its rules that will among other things delete the current ELM module from the Handbook. (Source: 2011 No 99)