BizAims

Use of e-money is adjusted by several documents, among which:Directive 2000/46/EC of 18 September 2000 of the European Parliament and of the Council on the taking up, pursuit of and prudential supervision of the business of electronic money institutions (OJ L 275 of 27 October 2000, p.39) and Directive 2000/28/EC of 18 September 2000 of the European Parliament and of the Council amending Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions (OJ L 275 of 27 October 2000, P.37).

The ElectronicMoney Directive mandates the establishment of a new prudential supervisory regime for issuers of e-money. The main objectives of the Directive are: (a) to create a regulatory framework to ensure the stability and soundness of e-money issuers, so as to increase business and consumer confidence in this new and developing means of payment; (b) to eliminate legal uncertainty created by the lack of harmonisation in this field; and (c) to facilitate access by e-money institutions from one EEA Member State into another.

There are benefits in implementing the Directive by regulating the issuing of e-money under FSMA. It achieves a basic consistency of treatment between the activity of issuing e-money and with other regulated activities under FSMA, which has the advantage of being a process that the financial services sector is already familiar with. It is, however, hard to quantify these benefits. 

E-money issuers will not only be subject to the specific rules made by the FSA to implement the requirements of the Directive, but will be subject to certain general requirements of persons authorised under FSMA. However, the costs of such requirements are not likely to be excessive. 

The FSA will be responsible for enforcing the regulation of the activity of issuing e-money. People against whom the FSA decides to take action have the right to refer the matter to the Financial Services and Markets Tribunal if they so wish.