ELM 6.8 Information

A firm must not issue e-money to any person unless that person has been supplied with the information in ELM 6.8.2 R and, where appropriate, ELM 6.8.2A R.1

A firm must make available to actual and prospective holders of e-money issued by the firm or that may be issued by it in the future:

1. (1)

   information about the redemption right, including the information specified in ELM 6.8.4 R; and

2. (2)

   the information specified in ELM 6.8.5 R.

12COBS 5.12 (The distance marketing disclosure rules)apply to a firm issuing e-money.

The information in ELM 6.8.2 R must be in a durable medium and in a readily comprehensible form.1

The information referred to in ELM 6.8.2 R (1) is:

1. (1)

   the amount of any fee of the type referred to in ELM 6.6.1 R, or, if there is no such fee, that fact;

2. (2)

   details of how the redemption right is to be exercised;

3. (3)

   the amount of any limit of the type set out in ELM 6.4.1 R, or, if there is no such limit, that fact; and

4. (4)

   the length of any period of validity of the type set out in ELM 6.4.2 R, or, if there is no such period of validity, that fact.

The information referred to in ELM 6.8.2 R (2) is:

1. (1)

   an explanation of the liability of a holder of e-money issued by the firm, and of the liability of the firm, for loss arising from, and the risks to such a holder arising from:

   1. (a)

      the use, by a person other than such a holder, of the e-money electronic device used by the holder;

   2. (b)

      fraud by another in relation to such a holder's e-money;

   3. (c)

      access to or use of such a holder's e-money by another;

   4. (d)

      loss, malfunction, theft or damage to or of any e-money electronic device used by such a holder;

2. (2)

   any other significant risks arising from the acquisition, use or holding of the e-money;

3. (3)

   the fact that the compensation scheme does not cover claims made in connection with issuing e-money;

4. (4)

   details about any scheme that compensates holders of e-money issued by the firm in cases where the firm is unable to satisfy claims against it in relation to e-money or the fact that there is no such scheme;

5. (5)

   details about:

   1. (a)

      the Financial Ombudsman Service and its application to the e-money scheme in question;

   2. (b)

      any other complaints and redress procedures available to the holder; and

   3. (c)

      how the holder may initiate those procedures; and

6. (6)

   a geographical address at which the firm may be contacted.

A firm carrying on an electronic commerce activity from an establishment in the United Kingdom with or for a person in the United Kingdom or another EEA state, in relation to e-money, must also comply with the e-commerce rules COBS 5.2.2