FEES TP 6 Transitional arrangements in relation to the introduction of the Electronic Money Regulations

26.1

Introduction

6.1.1

[FCA]

G

FEES TP 6 deals with transitional arrangements relating to the introduction of the Electronic Money Regulations in 2011.

6.2

Application fees

6.2.1

[FCA]

G

Under regulation 74 of the Electronic Money Regulations a person who before 30th April 2011 issued electronic money in accordance with a Part 4A permission may notify the FCA that it wishes to be authorised as an authorised electronic money institution or to be registered as a small electronic money institution. This covers the category of firm called an ELMI. That category is abolished by the Electronic Money Regulations.

6.2.2

[FCA]

G

No fee under FEES 3 is payable for that notification.

6.2.3

[FCA]

G

Before it was amended by the Electronic Money Regulations, article 9C of the Regulated Activities Order allowed a small electronic money issuer to obtain a certificate from the FCA that allowed it to issue electronic money without being authorised. Regulation 76 of the Electronic Money Regulations applies to such an issuer. Such an issuer can apply under the Electronic Money Regulations to become an authorised electronic money institution or to be registered as a small electronic money institution. If it does, a fee is payable under FEES 3 in the same way as it is for any other new application.

16.3

Periodic fees

6.3.1

[FCA]

G

A person subject to the transitional arrangements in regulation 74 of the Electronic Money Regulations will be deemed to be an authorised electronic money institution during the transitional period applicable to it. It will also retain its Part 4A permission in relation to electronic money.

6.3.2

[FCA]

G

A person subject to those transitional arrangements will be liable for the periodic fees payable by an authorised electronic money institution.

6.3.3

[FCA]

R

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 74 of the Electronic Money Regulations.

(2)

The fees are calculated as if the person had been an authorised electronic money institution from the beginning of the FCA's financial year 2011/12.

(3)

The fees for the FCA's financial year 2011/12 are based on information supplied by the person before the periodic fee becomes payable.

(4)

If the person has notified the FCA that it wishes to be registered as a small electronic money institution and it is registered as a small electronic money institution under regulation 74 during a financial year of the FCA then, for the purpose of the periodic fees for that financial year, it is treated as remaining as an authorised electronic money institution. Therefore no periodic fee is payable for that financial year in its capacity as a small electronic money institution.

6.3.4

[FCA]

R

If the transitional period under the Electronic Money Regulations comes to an end during a financial year of the FCA without the person being included by the FCA in the register as an authorised electronic money institution or as a small electronic money institution, periodic fees due at the start of that financial year must be paid immediately after the end of that transitional period.

6.3.5

[FCA]

R

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 76 of the Electronic Money Regulations.

(2)

Such an issuer is treated as a small electronic money institution. However the periodic fee is the same as the periodic fee for fee block G4 not fee block G11.

(3)

If the person has notified the FCA that it wishes to be registered as a small electronic money institution and it is so registered during a financial year of the FCA, then while the transitional period under regulation 76 is still current in any part of that financial year, for the purpose of the periodic fees for that financial year, it is treated as remaining as a small electronic money institution.

(4)

If the person has notified the FCA that it wishes to be authorised as an authorised electronic money institution and it is so authorised during a financial year of the FCA, then while the transitional period under regulation 76 is still current in any part of that financial year then, for the purpose of the periodic fees for that financial year:

(a)

it is treated in the same way as a newly authorised authorised electronic money institution; but

(b)

any periodic fee paid or payable for that financial year under (2) is taken into account so that no additional periodic fee is paid under (2).

6.3.6

[FCA]

G

The transitional arrangements in regulation 75 of the Electronic Money Regulations deal with a person other than a credit institution that issued electronic money in the United Kingdom under an EEA passport. It may continue until 30th October 2011 to carry on that activity.

6.3.7

[FCA]

R

(1)

This rule deals with periodic fees payable under FEES 4.3 by a person subject to the transitional regime in regulation 75 of the Electronic Money Regulations.

(2)

During the transitional period under the Electronic Money Regulations the person is treated as an EEA authorised electronic money institution. It is treated as having held this status from the beginning of the FCA's financial year 2011/12.

(3)

The fees for the financial year 2011/12 are based on information supplied by the person before the periodic fee becomes payable.

6.3.8

[FCA]

G

If the person becomes an EEA authorised electronic money institution during the transitional period under the Electronic Money Regulations it is treated as remaining as an EEA authorised electronic money institution during the FCA's financial year 2011/12. Therefore no additional periodic fee is payable.

6.3.9

[FCA]

R

If the transitional status of a person under the Electronic Money Regulations comes to an end before it gets its final status as an electronic money issuer under those regulations, any periodic fees that are due at the time its transitional status ends must be paid immediately thereafter.

6.4

FOS general levy

6.4.1

[FCA]

R

FEES TP 6.3 applies to the general levy described in FEES 5.3 in the same way as it does to periodic fees under FEES 4.3.

6.5

CFEB levy

6.5.1

[FCA]

R

FEES TP 6.3, except FEES TP 6.3.5, applies to the CFEB levy in the same way as it does to periodic fees under FEES 4.3.