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

ELM 6.6 Charges for redemption

ELM 6.6.1R

A firm may not charge a person any fee, expenses or other charge for or in connection with the exercise of a redemption right, except that a firm may charge a fee for the redemption of e-money if the following conditions are satisfied:

  1. (1)

    the e-money scheme rules give the firm the right to charge that fee;

  2. (2)

    the person exercising the redemption right is informed of the amount of the fee after the person makes the request for redemption and before completion of the redemption;

  3. (3)

    that person is given the opportunity, after he has received the information as described in (2), of withdrawing the request before the e-money is redeemed;

  4. (4)

    the fee is in accordance with the firm's usual tariff of fees for such redemptions; and

  5. (5)

    the fee is no greater than necessary to recover the costs to the firm of carrying out that redemption.

ELM 6.6.2R

Any fee permitted by ELM 6.6.1 R must never exceed the amount of e-money offered for redemption.