Q1. What is the purpose of these questions and answers ('Q&As') and who should be reading them?
1The purpose of these Q&As is to help persons to consider whether they fall within the scope of the Electronic Money Directive which repealed and replaced an earlier Electronic Money Directive (2000/46/EC). The Electronic Money Directive is given effect in the United Kingdom by the Electronic Money Regulations. The Q&As are intended to help these persons consider whether they need to be authorised or registered for the purposes of electronic money issuance in the United Kingdom.
- the conditions for authorisation as an authorised electronic money institution are set out at regulation 6 of the Electronic Money Regulations;
- small electronic money institutions have less stringent capital requirements than authorised electronic money institutions; however, they need to be registered in accordance with regulation 13 of the Electronic Money Regulations;
- full credit institutions, credit unions and municipal banks are exempt from requiring authorisation and registration under the Electronic Money Regulations but must have a Part IV permission for issuing electronic money and are subject to some of the conduct of business requirements in the Electronic Money Regulations.
A reference in this chapter to:
- individual regulations is a reference to the Electronic Money Regulations unless otherwise stated; and
- 'municipal bank' means a company which, immediately before 1st December 2001, fell within the definition in section 103 of the Banking Act 1987.
The Q&As that follow are set out in the following sections: