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 2Electronic 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 Electronic Money Regulations implemented the Electronic Money Directive in the United Kingdom.2 The Electronic Money Regulations create a separate authorisation and registration regime for issuers of electronic money that are not full credit institutions, credit unions or municipal banks:
- 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 4A 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: