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Status: You are viewing the version of the handbook as on 2009-03-31.

ELM 1.1 Application

ELM 1.1.1R

ELM applies to every firm and every other person within a category listed in column (2) of the table in ELM 1.1.2 R and in accordance with column (3) of that table. ELM 1.1.3 R applies to an incoming EEA firm and an incoming Treaty firm instead of ELM 1.1.2 R.

ELM 1.1.2R

Application of different chapters of ELM (except for an incoming EEA firm or an incoming Treaty firm)

(1) Chapter

(2) Categories of person to which chapter applies

(3) Applicable rules and guidance

1 (Application, contents, purpose and general)

Every firm that wishes to issue e-money

ELM 1.3

An e-money firm

The whole chapter

A small e-money issuer and an applicant for a small e-money issuer certificate

The whole chapter except ELM 1.5

2 (Initial and continuing own funds requirements)

An ELMI that is not a lead regulated firm

The whole chapter

3 (Management of the e-money float)

An ELMI that is not a lead regulated firm

The whole chapter

4 (Limitations on activities)

An ELMI

The whole chapter

An e-money firm that is not an ELMI

The whole chapter except ELM 4.3

5 (Systems and controls; Rules for making calculations)(Note 1)2

An ELMI

The whole chapter

An e-money firm that is not an ELMI

ELM 5.1, ELM 5.2 and ELM 5.4

6 (Redemption, information requirements and purse limits)

An e-money firm

The whole chapter

7 (Consolidated financial supervision)

An ELMI that is a member of a group and is not a lead regulated firm

The whole chapter

8 (Small e-money issuers)

An applicant for a small e-money issuer certificate and a small e-money issuer

The whole chapter

2Note 1 = ELM 5.1.2 R and ELM 5.1.3 R contain further application statements with respect to ELM 5.4A.

Incoming EEA firms and incoming Treaty firms

ELM 1.1.3R
  1. (1)

    ELM 1 applies to an e-money firm that is:

    1. (a)

      an incoming EEA firm; or

    2. (b)

      an incoming Treaty firm;

    if it has not established a branch in the United Kingdom. Otherwise ELM does not apply to such firms.

  2. (2)

    ELM 1 and ELM 6 apply to an e-money firm that is:

    1. (a)

      an incoming EEA firm; or

    2. (b)

      an incoming Treaty firm;

    if it has established a branch in the United Kingdom. Otherwise ELM does not apply to such firms.

Firms established outside the EEA

ELM 1.1.4G

The definition of ELMI covers firms that are established outside the EEA. Thus all those parts of ELM that apply to ELMIs apply to such firms. However if the ELMI is a lead regulated firm, chapters 2, 3 and 7 of ELM do not apply.

Distance marketing activities1

ELM 1.1.5G
  1. (1)

    1ELM 1.4A sets out certain minimum requirements under the Distance Marketing Directive in respect of a customer's cancellation rights. These rules are supplemented by the requirements in COBS 15.23 (The right to cancel), COBS 15.3(Notice of exercise) and COBS 15.43 (Effects of cancellation) which all apply to e-money firms.

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  2. (2)

    As set out in , COBS 153 applies to e-money firms as if references to 'accepting deposits and 'deposits' were references to 'issuing e-money' and 'e-money' respectively.3'

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