Electronic money institutions: conduct of business requirements

Read more about how conduct of business requirements affect electronic money institutions

Conduct of business and the EMRs

Part 5 of the EMRs sets out conduct of business requirements that apply to the conduct of e-money business where it is carried out from an establishment maintained by:

  • an electronic money issuer or
  • its agent or
  • distributor in the UK.

They relate to:

  • issuing and redeeming e-money, and
  • the prohibition on the payment of interest or other benefits linked to the length of time that e-money is held

The COBs apply to all electronic money issuers.

Full details are set out in Chapter 8 of our Approach Document.

Conduct of business and the PSRs

The PSRs set out conduct of business requirements for all payment service providers, including electronic money issuers. This means:

  • requirements for information to be provided to payment service users, and
  • specific rules on the respective rights and obligations of payment service users and providers

See Chapter 8 in the Payment Services Approach Document for the requirements of the PSRs on issuing e-money and the payment services that they provide.

Conduct of business and other legislation

In addition to complying with the EMRs and PSRs, electronic money issuers have to comply with other relevant legislation. This includes:

  • Consumer Credit Act 1974 – see Parts I and II of Chapter 8 of the Payment Services Approach Document.
  • Distance Marketing Directive – see the Distance Marketing Regulations 2004.
  • cross-border payments and Single Euro Payments Area (SEPA) legislation
  • E-Commerce Directive (2000/31/EC)
  • Unfair Terms in Consumer Contracts Regulations 1999 – read more about unfair terms
  • Consumer Protection from Unfair Trading Regulations 2008 (CPRs) 

Electronic money issuers authorised under FSMA

Electronic money issuers that are credit institutions or are authorised under FSMA for a separate regulated activity will also have to comply with their obligations as outlined in the Handbook.

Credit institutions should also be aware of their obligations under: