The Second E-money Directive: Fast forwarding change and industry expansion
The Second Electronic Money Directive must be transposed into UK law by 30 April 2011. HM Treasury has issued a Consultation Paper that proposes the implementation of the Directive through new Electronic Money Regulations (the “EMRs”). The FSA in turn has issued CP 10/25 consulting on consequential adjustments to the FSA’s Handbook.
The EMRs represent a significant regime change and reflect the political will at both European and UK level to attract new and innovative participants to the e-money industry, not least to provide competition to traditional bank payment systems.
Existing e-money firms will also have a lot to do before 1 May 2011: the FSA’s Electronic Money Handbook will effectively be deleted and firms will have to look to the new EMRs for their prudential and authorisation regime. Firms will need to carry out a gap analysis against the new EMRs and consider changes to their customer T&Cs and operational systems.
Lawyers Jonathan Rogers, David Roberts
