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ELM 2.2 Purpose

ELM 2.2.1G

This chapter requires ELMIs to have a minimum amount of capital.

ELM 2.2.2G

In addition, threshold condition 4 says that the resources of the [firm] must, in the opinion of the [FSA], be adequate in relation to the regulated activities that he seeks to carry on, or carries on. Principle 4 also requires all firms 'to maintain adequate financial resources'.

ELM 2.2.3G

The purpose of the capital requirements in this chapter is to:

  1. (1)

    help an ELMI to maintain itself as a viable going concern, to overcome expected and unexpected difficulties and to sustain its infrastructure;

  2. (2)

    help an ELMI to secure, in conjunction with the asset-liability management requirements in ELM 3, its ability to redeem e-money whenever redemption may be required; and

  3. (3)

    help to maintain public confidence in an ELMI's ability to redeem e-money as and when required.

ELM 2.2.4G

This chapter implements article 4 of the E-Money Directive.