ELM 5.2 Purpose
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'. This includes the means by which a firm manages the incidence of risk in connection with its business.
Threshold condition 5 says that a firm must satisfy the FSA that he is a fit and proper person having regard to all the circumstances.
The purpose of this chapter is to amplify the requirements of Principle 3 for firms in specific areas and thus make it more likely that firms will have adequate systems and controls. It also increases certainty by providing guidance on some of the specific ways in which the rules in SYSC 3 apply in relation to issuing e-money. This chapter also helps to establish a firm's compliance with threshold conditions 4 and 5.
This chapter implements article 7 of the E-Money Directive and (for ELMIs) article 6(1) of the Banking Consolidation Directive.