ELM 8.3 Introduction

The holder of a small e-money issuer certificate (a small e-money issuer) is excluded from the regulated activity of issuing e-money.

A small e-money issuer is not an exemptperson within the meaning of the Act, that is a person who is carrying on a regulated activity but exempt from the need to be authorised. The small e-money issuer is not, as such, carrying on a regulated activity. This means, in particular, that:

1. (1)

   an authorised person can be a small money issuer (unless it is a full credit institution (see ELM 8.4.2 G); and

2. (2)

   a small e-money issuer does not benefit from the exclusion in article 16 of the Financial Promotion Order (Exempt persons).

AUTH App 3.4 gives guidance on the restrictions on financial promotion in section 21 of the Act (Restrictions on financial promotion) in relation to e-money.

A person who issues e-money on a limited scale may apply to the FSA for a small e-money issuer certificate. This chapter contains the provisions relating to the certificate in the following sections:

1. (1)

   ELM 8.4 gives guidance on the three conditions under which a certificate may be given;

2. (2)

   ELM 8.5 contains the direction on how to apply for a certificate and gives guidance on the application procedure;

3. (3)

   ELM 8.6 contains the direction on how to apply for a revocation of a certificate and gives guidance on how the FSA may revoke a certificate on its own initiative; and

4. (4)

   ELM 8.7 contains rules and guidance about the provision of information to the FSA, including the rules which require a small e-money issuer to give periodic reports and change reports to the FSA on Form ELM-SI (which is set out in ELM 8 Annex 2 R).

The legislative provisions in respect of a small e-money issuer certificate are primarily contained in articles 9C to 9G of the Regulated Activities Order. The rules and guidance in this chapter are based on those provisions.

Certain procedural provisions apply to an application for a small e-money issuer certificate as they apply to an application for a Part IV permission.

The application must give the address of a place in the United Kingdom for service on the applicant of any notice or other document which is required or authorised to be served on him under the Act.

The application must be made in the manner directed by the FSA (see ELM 8.5.1 D) and contain any information which the FSA reasonably requires. The FSA may require further information to enable it to determine the application.

The application for a small e-money issuer certificate must be determined by the FSA within six months from when it receives the completed application or, if the application is incomplete, within 12 months. The applicant may withdraw his application by written notice. The FSA must give the applicant written notice of the grant of the application or a warning notice if it proposes to refuse the application. Guidance on the decision making procedures is given in DEC 2 (Statutory notice procedure: warning notice and decision notice procedure).

An applicant who is aggrieved by the determination of the application may refer the matter to the Tribunal (see (The Tribunal)).

Article 9I of the Regulated Activities Order (False claims to be a certified person) provides that a person who is not a small e-money issuer is to be treated as guilty of an offence under section 24 of the Act (False claims to be authorised or exempt) if he describes himself (in whatever terms) as a small e-money issuer. It is also an offence for such a person to behave, or otherwise hold himself out, in a manner which indicates that he is a small e-money issuer.

ENF 15 (Prosecution of criminal offences) and DEC 4.6 (Decisions to apply to the civil courts and to prosecute criminal offences) contain guidance on the FSA's policy and procedures relating to the exercise of its powers to prosecute criminal offences, including offences under section 24 of the Act.

See also ELM 8.7.18 G to ELM 8.7.20 G (Criminal offences relating to the provision of information).

No claim under the compensation scheme may be made against a small e-money issuer since the scheme pays compensation only in respect of claims made in connection with regulated activities (section 213 of the Act (The compensation scheme)).

The FSA's public register maintained under section 347 of the Act (The record of authorised persons etc.) includes every small e-money issuer.