S.I. No. 183/2011 - European Communities (Electronic Money) Regulations 2011

• (4) A person shall not, directly or indirectly, dispose of part of a qualifying holding in an electronic money institution without having previously notified the Bank in writing of the intended size of the holding if, as a result of the disposal—

• (a) the percentage of the capital of, or the voting rights in, the electronic money institution that the person holds would fall to or below a prescribed percentage, or

• (b) in the case of a person that is a company or other body corporate, the electronic money institution would cease to be the person’s subsidiary.

• (5) A notification under paragraph (1) or (2) shall include sufficient information to enable the Bank to consider the proposed acquisition according to the nature of the proposed acquirer and the proposed acquisition, and in particular shall include information on who the proposed acquirers are, the individuals to be responsible for their management, how the proposed acquisition is to be financed (including details of any proposed issue of financial instruments) and the structure of the resulting group.

• (6) The information to be provided in a notification under paragraph (1) or (2) is the same as that required by the form of notification published by the Bank on 25 May 2009 entitled “Acquiring Transaction Notification Form”, and includes any document in relation to the proposed acquisition or proposed acquirer concerned required by that form.

Electronic money institution to provide information in relation to certain acquisitions and disposals

• (2) If an electronic money institution becomes aware of a disposal of, or a reduction in the size of, a holding in it that results in the holding ceasing to be a qualifying holding or falling to or below a prescribed percentage, the institution shall inform the Bank in writing of the disposal or reduction without delay.

Period for assessment of proposed acquisition

• (2) For the purposes of paragraph (1), a notification is completed if it gives all the information (whether in the notification itself or as an attachment) required by Regulation 38 to be provided for the assessment of the proposed acquisition concerned.

• (3) Within 60 business days after the date of the written acknowledgement referred to in paragraph (1), the Bank shall carry out the assessment of the proposed acquisition concerned in accordance with Regulation 41.

• (4) In its acknowledgement of receipt of a notification referred to in paragraph (1), the Bank shall inform the proposed acquirer concerned of the date on which the assessment period will end.

• (5) During the assessment period in relation to a proposed acquisition, but no later than the 50th business day of that period, the Bank may request any further information necessary to complete the assessment of the acquisition. If the Bank makes such a request, it shall acknowledge the receipt of any information received in response to the request.

• (6) A request under paragraph (5) shall be made in writing and shall specify or describe the additional information needed.

• (7) Subject to paragraph (9), if the Bank makes a request under paragraph (5) the assessment period is to be taken to be interrupted for the shorter of—

• (a) the period between the date of the request and the date of the receipt of a response from the proposed acquirer concerned, and

(b)20 business days.

• (8) The Bank may request still further information for completion or clarification of information already supplied but such a further request does not interrupt the assessment period.

• (9) The Bank may, by notice in writing to a proposed acquirer, extend the interruption referred to in paragraph (7) in relation to a proposed acquisition to 30 business days if the proposed acquirer concerned—

• (a) is situated or regulated outside the Community, or

• (b) is not subject to supervision under a law of a Member State that transposes Council Directive 85/611/EEC of 20 December 1985⁹ on the coordination of laws, regulations and administrative provisions to undertakings for collective investment in transferable securities (UCITS), Council Directive 92/49/EEC of 18 June 1992¹⁰ on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (third non-life insurance Directive), Directive 2002/83/EC of 5 November 2002¹¹ concerning life assurance, 2004/39/EC of 21 April 2004¹² on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC, Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005¹³ on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC or 2006/48/EC.

Assessment of proposed acquisitions

• (2) In assessing a proposed acquisition, the Bank—

• (a) shall have regard to the likely influence of the proposed acquirer concerned on the electronic money institution concerned, and

• (b) shall appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition concerned against all of the following criteria:

• (i) the reputation of the proposed acquirer;

• (ii) the reputation and experience of the individuals who will direct the business of the institution as a result of the proposed acquisition;

• (iii) the financial soundness of the proposed acquirer, in particular in relation to the type of business pursued and envisaged in the institution;

• (iv) whether the institution will be able to comply and continue to comply with the prudential requirements of existing legislation;

• (v) whether the group of which it will become a part has a structure that makes it possible to exercise effective supervision, effectively exchange information among the competent authorities and determine the allocation of responsibilities among the competent authorities; and

• (vi) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or terrorist financing (within the meaning of Article 1 of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005¹⁴ on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing) is being or has been committed or attempted, or that the proposed acquisition could increase the risk of money laundering or terrorist financing.

• (3) The Bank shall not examine a proposed acquisition in terms of the economic needs of the market.

• (4) Where 2 or more proposals to acquire or increase qualifying holdings in the same electronic money institution have been notified to the Bank, the Bank shall treat the proposed acquirers concerned in a non-discriminatory manner.

Bank to cooperate with competent authorities of other Member States in certain cases

• (a) an insurance undertaking, reinsurance undertaking, credit institution, investment firm or UCITS management company, or the market operator of a regulated market, authorised by a competent authority of another Member State,

• (b) the parent undertaking of such an undertaking, institution, firm, company or market operator, or

• (c) a person that controls such an undertaking, institution, firm, company or market operator.

• (2) In paragraph (1)(a) “UCITS management company” and “market operator of a regulated market” respectively have the same meanings as in the European Communities (Markets in Financial Instruments) Regulations 2007.

• (3) In a case to which paragraph (1) applies, the Bank shall, without undue delay, provide any other competent authority concerned with any information that is essential or relevant for the assessment of a proposed acquisition. The Bank shall communicate to each such other competent authority all relevant information upon request and all essential information on its own initiative.

• (4) A decision by the Bank, in the case of a proposed acquisition in an electronic money institution authorised by the Bank, shall indicate any views or reservations expressed by the competent authority responsible for the proposed acquirer concerned.

Bank may fix period for completion of acquisition, etc

• (2) If the Bank has given notice in relation to a proposed acquisition that the Bank does not oppose the acquisition, the Bank may impose a condition or a requirement, or both, being a condition or a requirement that the Bank considers necessary for the proper and orderly regulation and supervision of electronic money institutions, and may at any time revoke or vary any condition or requirement so imposed.

Notice of Bank’s decision

• (2) Subject to any other law, the Bank shall publish an appropriate statement of the reasons for the decision if the proposed acquirer concerned so requests. The Bank may in its discretion publish such a statement even without any request by the proposed acquirer.

• (3) If the Bank does not give notice in writing within the assessment period in relation to the proposed acquisition that it opposes the acquisition, the acquisition is taken, for the purposes of any other law that requires the acquisition to be approved by the Bank, to have been so approved.

Bank may oppose certain acquisitions

• (a) there are reasonable grounds for doing so on the basis of the criteria in paragraph (1) or (2) of Regulation 41, or

• (b) the information provided by the proposed acquirer in its notification under Regulation 38 is incomplete, or the proposed acquirer has not provided information in response to a request under paragraph (5) or (8) of Regulation 40.

Decision to oppose proposed acquisition to be appealable

Circumstances in which proposed acquisition not to be completed

• (a) the proposed acquirer has notified the Bank of the acquisition in accordance with Regulation 38,

• (b) the Bank has acknowledged that notification in accordance with Regulation 40 (1), and

• (c) either—

• (i) the assessment period in relation to the acquisition has ended and the Bank has not notified the proposed acquirer that it opposes the acquisition, or

• (ii) the Bank has notified the proposed acquirer that it does not oppose the acquisition.

• (2) If a proposed acquirer purports to complete a proposed acquisition in contravention of paragraph (1)—

• (a) the purported acquisition is of no effect to pass title to any share or any other interest, and

• (b) any exercise of powers based on the purported acquisition of the holding concerned is void.

Effect of section 201 of Companies Act 1963

Electronic money institutions to provide information about shareholdings, etc

Power of court to make certain orders

• (2) On making an application under paragraph (1), the Bank shall serve a copy of the application on the person to whom the application relates. On being served with the notice, that person becomes the respondent to the application.

• (3) On the hearing of an application under paragraph (1), the court may, on being satisfied that the Bank’s belief is substantiated, make all or any of the following orders:

• (a) an order directing the respondent to dispose of the holding or a specified part of it;

• (b) an order suspending the exercise of the voting rights attached to the relevant shares;

• (c) an order invalidating votes already exercised by holders of those shares.

Powers of Bank to waive the application of all or part of the obligations pursuant to this Chapter

PART 3 ISSUANCE AND REDEEMABILITY OF ELECTRONIC MONEY

Issuance and redeemability

• (a) on receipt of funds, issue without delay electronic money at par value, and

• (b) at the request of the electronic money holder, redeem—

• (i) at any time, and

• (ii) at par value,

the monetary value of the electronic money held.

Conditions of redemption

• (a) that the contract between the electronic money issuer and the electronic money holder clearly and prominently states the conditions of redemption, including any fees relating to redemption, and

• (b) that the electronic money holder is informed of those conditions before being bound by any contract or offer.

Fees for redemption

• (a) redemption is requested before the termination of the contract,

• (b) the contract provides for a termination date and the electronic money holder terminates the contract before that date, or

• (c) redemption is requested more than one year after the date of termination of the contract.

• (2) Any such fees for redemption must be proportionate and commensurate with the costs actually incurred by the electronic money issuer.

Amount of redemption

• (2) Where an electronic money holder makes a request for redemption on, or up to one year after, the date of the termination of the contract, the electronic money issuer must redeem—

• (a) the total monetary value of the electronic money held, or

• (b) if the electronic money issuer carries out any business activities which fall within Regulation 28(1)(e) and it is not known in advance what proportion of funds received by it is to be used for electronic money, all the funds requested by the electronic money holder.

Redemption rights of persons other than consumers

Prohibition of interest

• (a) interest in respect of the length of time during which the electronic money holder holds electronic money, or

• (b) any other benefit related to the length of time during which an electronic money holder holds electronic money.

PART 4 POWERS AND DUTIES OF THE BANK

Chapter 1 Supervisory powers and duties

Bank as competent authority

Supervision

• (a) may require an electronic money issuer to provide such information as it requires to monitor the institution’s compliance with these Regulations,

• (b) may carry out on-site inspections at—

• (i) the premises of an electronic money issuer,

• (ii) any distributor, agent or branch issuing electronic money or providing payment services under the responsibility of an electronic money issuer,

• (iii) the premises of any entity to which an electronic money issuer’s activities are outsourced, and

• (iv) any premises at which the issuance of electronic money or payment services are, or are suspected of being, conducted,

and

• (c) may issue recommendations and guidelines.

• (2) The Bank may take steps to ensure that an electronic money institution maintains sufficient capital for the issuance of electronic money or the provision of payment services, in particular where the activities not related to the issuance of electronic money of an electronic money institution impair or are likely to impair the financial soundness of the electronic money institution.

Bank’s power to give directions

• (a) an electronic money institution,

• (b) another person registered to issue electronic money in the State, or

• (c) any other person involved in or connected with the issuance of electronic money in the State.

• (2) A direction under paragraph (1)—

• (a) takes effect on the date, or on the occurrence of the event, specified in the direction for the purpose, and

• (b) ceases to have effect on the earlier of—

• (i) the date, or the occurrence of the event, specified in the direction for the purpose, or

• (ii) the expiration of the period of 12 months immediately following the day on which it took effect.

• (3) If a direction under this Regulation has not been complied with or is unlikely to be complied with, the Bank may apply to the court in a summary manner for such order as the court thinks appropriate by way of enforcement of the direction.

• (4) The Bank may direct—

• (a) a credit institution or any institution exempted under section 7 of the Central Bank Act 1971 (No. 24 of 1971), or

• (b) any other financial institution,

that holds an account of any description of the electronic money institution (including holdings of investment instruments of the electronic money institution to which the direction has been given), to cease making payments from, or entering into other transactions in respect of, the account without the prior authorisation of the Bank.

Exchange of information

• (2) The Bank may exchange information with—

• (a) the competent authorities of other Member States responsible for the authorisation and supervision of electronic money institutions,

• (b) the European Central Bank and the central banks of other Member States, in their capacity as monetary and oversight authorities, and, where appropriate, other public authorities responsible for overseeing payment and settlement systems, and

• (c) relevant authorities of other Member States designated under laws giving effect to the Electronic Money Directive and other acts of the European Communities applicable to electronic money issuers (for example, acts applicable to the protection of individuals with regard to the processing of personal data and to money laundering and terrorist financing).

Chapter 2 Powers of authorised officers

Interpretation (Chapter 2)

Power to appoint authorised officers

• (a) authorise a person as an authorised officer, and

• (b) revoke such an authorisation.

• (2) The appointment of an authorised officer may be for a specified period or indefinite.

• (3) The Bank shall furnish an authorised officer with a certificate of his or her appointment as an authorised officer.

• (4) The appointment of a person as an authorised officer ceases—

• (a) if the Bank revokes the appointment, at the time of revocation,

• (b) if the person dies, at the time of his or her death,

• (c) if the appointment is for a specified period, at the end of that period, or

• (d) if the person is, when appointed, an officer of the Bank, and the person ceases to be such an officer, when he or she so ceases.

Powers of authorised officers

• (a) enter any premises (other than a private dwelling) at which the officer has reasonable grounds to believe that the business of an electronic money issuer is, or has been, carried on, or on which there are relevant records,

• (b) search and inspect such premises and any relevant records on the premises,

• (c) secure for later inspection such premises or any part of such premises in which relevant records are kept or in which the officer has reasonable grounds for believing relevant records are kept,

• (d) require a person who carries on the business of an electronic money issuer and any person employed in connection with such a business to produce to the officer relevant records, and if any such record is in a non-legible form, to reproduce it in a legible form or to give the officer such information as the officer reasonably requires in relation to entries in the relevant records,

• (e) inspect and take copies of relevant records inspected or produced to the officer (including, in the case of information in a non-legible form, a copy of all or part of the information in a permanent legible form),

• (f) remove and retain any of the relevant records inspected or produced under this Act for such period as may be reasonable to allow their further examination,

• (g) require a person to give to the officer information (including information by way of a written report) that the officer reasonably requires in relation to activities covered by this Chapter and to produce to the officer any relevant records that the person has or has access to,

• (h) require a person by whom or on whose behalf data equipment is or has been used, or any person who has charge of, or is otherwise concerned with the operation of, the data equipment or any associated apparatus or material, to give the officer all reasonable assistance in relation the operation of that equipment, and

• (i) require a person to explain entries in any relevant records.

• (2) When exercising a power of an authorised officer, an authorised officer shall produce the certificate, together with some form of personal identification, if requested to do so by a person affected by the exercise of that power.

• (3) An authorised officer shall not enter a private dwelling (other than a part of the dwelling used as a place of work) except with the consent of the occupier.

• (4) If a person from whom production of a relevant record is required claims a lien over it, the production of it does not affect the lien.

• (5) An obligation to produce a relevant record or report or to provide information or assistance under this Regulation applies to—

• (a) a liquidator or receiver of, or a person who is or has been an officer or employee or agent of, a payment service provider, or

• (b) any other person who appears to the Bank or the authorised officer to have a relevant record or report in his or her possession or under his or her control or the ability to provide information or assistance, as the case may be.

• (6) An authorised officer may, if the officer considers it necessary, be accompanied by a member of the Garda Síochána when exercising a power under this Chapter.

Warrants

• (a) is prevented from entering any premises, or

• (b) believes that there are relevant records in a private dwelling,

he or she may apply to a judge of the District Court for a warrant authorising the entry by the authorised officer into the premises or the dwelling.

• (2) If on an application under paragraph (1) a judge of the District Court is satisfied, on the information of the applicant authorised officer, that the applicant authorised officer—

• (a) has been prevented from entering the premises concerned, or

• (b) has reasonable grounds for believing that there are relevant records in the private dwelling concerned,

the judge may issue a warrant under his or her hand authorising the applicant authorised officer, accompanied, if the judge considers it appropriate, by a specified number of members of the Garda Síochána, to enter, if need be by force, at any time within 4 weeks from the date of issue of the warrant, the premises or private dwelling and there exercise the powers set out in Regulation 64.

Chapter 3 Out-of-Court complaint and redress procedures

Out-of-court redress

• (2) In the case of a cross-border dispute, the Financial Services Ombudsman shall cooperate actively with equivalent bodies in other European Economic Area Member States in resolving them.

Chapter 4 Appeals

Appealable decisions

• (a) a decision under Regulation 9—

• (i) refusing to grant an authorisation to operate as an electronic money institution, or

• (ii) granting such an authorisation subject to conditions or requirements;

• (b) a decision under Regulation 27 to withdraw such an authorisation;

• (c) a decision under Regulation 33(5) or 78(3) to give a direction under that section to a person registered as a small electronic money institution;

• (d) a decision under Regulation 36 to withdraw a waiver granted under Regulation 33(2);

• (e) a decision under Regulation 60 to give a direction to a person;

• (f) a decision under Regulation 77(3) to revoke an authorisation granted under Regulation 77(2).

PART 5 OFFENCES

Offence — operation as an electronic money institution without authorisation, etc.

Offence — false or misleading information in application, etc.

• (a) knowingly or recklessly makes a statement which is false or misleading in a material particular in an application for authorisation to operate as an electronic money institution,

• (b) knowingly or recklessly makes a statement which is false or misleading in a material particular to the Bank in relation to—

• (i) the obtaining of an authorisation to operate as an electronic money institution, or

• (ii) an approval, waiver or permission from the Bank concerning the operation of an electronic money institution,

or

• (c) knowingly or recklessly provides information which is false or misleading in a material particular to the Bank in purported compliance with a requirement of or under Chapter 8 of Part 2.

Offence — misappropriation of users’ funds

Offence — failure to keep appropriate records, etc.

• (2) It shall be a defence for a person prosecuted for an offence under paragraph (1) to prove that he or she had no intention to defeat the law.

• (3) A person who fraudulently disposes of, alters or makes an omission in any record or document referred to in paragraph (1), or who is privy to such disposal of, altering or making of an omission in any such record or document, commits an offence.

Offences — obstruction of authorised officer, etc.

• (2) A person who, without reasonable excuse, refuses or fails to comply with a request or requirement of an authorised officer made in accordance with these Regulations commits an offence.

• (3) A person commits an offence if the person knowingly or recklessly gives an authorised officer information which is false or misleading in a material particular.

Offence — provision of false or misleading information under these Regulations

• (a) knowingly or recklessly provides an answer or explanation, makes a statement or produces information to the Bank that is false or misleading in a material particular, or

• (b) knowingly omits or withholds material information from the Bank.

Penalties

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 6 months or both, or

• (b) on conviction on indictment, to a fine not exceeding €500,000 or imprisonment for a term not exceeding 3 years or both.

Prosecution of offences

• (2) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act 1851 (14 & 15 Vict. c. 93), summary proceedings for an offence under these Regulations to which that provision applies may be instituted—

• (a) within 12 months from the date on which the offence was committed, or

• (b) within 6 months from the date on which evidence sufficient, in the opinion of the person instituting the proceedings, to justify the proceedings comes to that person’s knowledge.

whichever is the later, provided that no such proceedings shall be commenced later than 2 years from the date on which the offence concerned was committed.

• (3) For the purposes of paragraph (2)(b), a certificate signed by or on behalf of the person initiating the proceedings as to the date on which evidence referred to in that paragraph came to his or her knowledge shall be evidence of that date and, in any legal proceedings, a document purporting to be a certificate under this paragraph and to be so signed shall be admitted as evidence without proof of the signature of the person purporting to sign the certificate, unless the contrary is shown.

Offences — directors and others of bodies corporate and unincorporated bodies

• (a) a director, manager, secretary or other officer of the body, or a person purporting to act in that capacity, or

• (b) a member of the committee of management or other controlling authority of the body, or a person purporting to act in that capacity,

that person is taken to have also committed the offence and may be proceeded against and punished accordingly.

PART 6 TRANSITIONAL

Electronic Money Issuers active before 30 April 2011

• (2) If a person referred to in paragraph (1) satisfies the Bank that the person complies with the requirements in Chapters 2, 3, 4 and 8 of Part 2, the Bank shall grant authorisation to the person and shall register the person. The Bank shall notify the person before granting the authorisation.

• (3) The Bank may revoke an authorisation granted under paragraph (2) as if the authorisation had been granted under Chapters 2, 3, 4 and 8 of Part 2.

Certain small electronic money issuers active before 30 April 2011

• (a) in accordance with the European Communities (Electronic Money) Regulations 2002 commenced before 30 April 2011 to carry on the activities of an electronic money institution in the State, and

• (b) qualified for a waiver under Regulation 19 of the Regulations referred to in paragraph (a),

may continue to issue electronic money within the State and not be subject to Part 2 until 30 April 2012.

• (2) If a person referred to in paragraph (1) notifies the Bank that the person intends to continue the issuance of electronic money and provide a payment service, and satisfies the Bank that it qualifies as a small electronic money institution, the Bank shall register the person as a small electronic money institution.

• (3) The Bank may direct that a person referred to in paragraph (2) shall not engage in one or more of the activities which fall within Regulation 28(1).

PART 7 AMENDMENT AND REVOCATION OF OTHER LEGISLATION

Amendment of Central Bank Act 1942

Amendment of European Communities (Licensing and Supervision of Credit Institutions) Regulations 1992

Amendment of Payment Services Regulations

Revocation of European Communities (Electronic Money) Regulations 2002

Regulations 79 to 81

Schedule AMENDMENT OF OTHER LEGISLATION

Regulation 79

PART 1 AMENDMENT OF CENTRAL BANK ACT 1942

Item	Provision amended	Amendment	Amendment	Amendment	Amendment
1	Section 33AK(10), paragraph (o) of the definition of “Supervisory Directives”	Delete “(No. 37 of 2007), and” and substitute “(No. 37 of 2007),”.	Delete “(No. 37 of 2007), and” and substitute “(No. 37 of 2007),”.	Delete “(No. 37 of 2007), and” and substitute “(No. 37 of 2007),”.	Delete “(No. 37 of 2007), and” and substitute “(No. 37 of 2007),”.
2	Section 33AK(10), paragraph (p) of the definition of “Supervisory Directives”	Delete “Directive 97/5/EC.” and substitute “Directive 97/5/EC, and”.	Delete “Directive 97/5/EC.” and substitute “Directive 97/5/EC, and”.	Delete “Directive 97/5/EC.” and substitute “Directive 97/5/EC, and”.	Delete “Directive 97/5/EC.” and substitute “Directive 97/5/EC, and”.
3	Section 33AK(10), definition of “Supervisory Directives”	After paragraph (p), insert the following: “(q) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC.”.	After paragraph (p), insert the following: “(q) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC.”.	After paragraph (p), insert the following: “(q) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC.”.	After paragraph (p), insert the following: “(q) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC.”.
4	Section 33ANB (1)(a)	Delete subparagraph (i) and substitute the following: “(i) a provision of the European Communities (Payment Services) Regulations 2009 ( S.I. No. 383 of 2009 ) or the European Communities (Electronic Money) Regulations 2011 (S.I. No. 183 of 2011),”.	Delete subparagraph (i) and substitute the following: “(i) a provision of the European Communities (Payment Services) Regulations 2009 ( S.I. No. 383 of 2009 ) or the European Communities (Electronic Money) Regulations 2011 (S.I. No. 183 of 2011),”.	Delete subparagraph (i) and substitute the following: “(i) a provision of the European Communities (Payment Services) Regulations 2009 ( S.I. No. 383 of 2009 ) or the European Communities (Electronic Money) Regulations 2011 (S.I. No. 183 of 2011),”.	Delete subparagraph (i) and substitute the following: “(i) a provision of the European Communities (Payment Services) Regulations 2009 ( S.I. No. 383 of 2009 ) or the European Communities (Electronic Money) Regulations 2011 (S.I. No. 183 of 2011),”.
5	Schedule 2, Part 2	At the end, insert the following:	At the end, insert the following:	At the end, insert the following:	At the end, insert the following:
		“51.	S.I. No. 183 of 2011	European Communities (Electronic Money) Regulations 2011 (S.I. No. 183 of 2011)	The whole instrument”

Regulation 80

PART 2 AMENDMENT OF EUROPEAN COMMUNITIES (LICENSING AND SUPERVISION OF CREDIT INSTITUTIONS) REGULATIONS 1992

Item	Provision amended	Amendment
1	Regulation 2	Substitute for the definition of “credit institution” the following: “ ‘credit institution’ means an undertaking the business of which is to receive deposits or other repayable funds from the public and to grant credits for its own account;”.
2	Regulation 2	Substitute for the definition of “financial institution” the following: “ ‘financial institution’ means an undertaking, other than a credit institution, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and 16 of the Schedule;”.
3	Schedule	The Schedule is amended by inserting, after item 15, the following: “16. Issuing electronic money.”.

Regulation 81

PART 3 AMENDMENT OF PAYMENT SERVICES REGULATIONS

Item	Provision amended	Amendment
1	Regulation 33(6)	Delete “to (4)” and substitute “to (5)”.
2	Regulation 113	Delete paragraph (2) and substitute the following: “(2) Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act 1851, summary proceedings for an offence under these Regulations to which that provision applies may be instituted— (a) within 12 months from the date on which the offence was committed, or (b) within 6 months from the date on which evidence sufficient, in the opinion of the person instituting the proceedings, to justify proceedings comes to that person’s knowledge, whichever is the later, provided that no such proceedings shall be commenced later than 2 years from the date on which the offence concerned to committed. (3) For the purposes of paragraph (2)(b), a certificate signed by or on behalf of the person initiating the proceedings as to the date on which evidence referred to in that paragraph came to his or her knowledge shall be evidence of that date and, in any legal proceedings, a document purporting to be a certificate under this paragraph and to be so signed shall be admitted as evidence without proof of the signature of the person purporting to sign the certificate, unless the contrary is shown.”.
3	Schedule 1	Delete point 5 and substitute the following: “5. Issuing payment instruments or acquiring payment transactions.”.

GIVEN under my Official Seal,

21 April 2011.

MICHAEL NOONAN,

Minister for Finance.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

This Statutory Instrument implements Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ No. L 275, 27.10.2000, p.39).

The purpose of the revised Electronic Money Directive (2009/110/EC) is to promote the emergence of a single market for electronic money services in the European Union that is innovative and secure while ensuring there is competition between players on the market and that it is accessible to new entrants.

The Statutory Instrument designates the Central Bank of Ireland as the competent authority for the purposes of the Electronic Money Directive.

A detailed summary of each of the Parts of the Regulations is included below.

Part 1 — Preliminary Provisions

Part 1 of the Regulations sets out that the Regulations will come into effect on 30 April 2011, and that the Central Bank of Ireland (“the Bank”) will be the competent authority in Ireland. It also sets out the scope of the Regulations and includes definitions of terms used in the Regulations.

Part 2 — Requirements for the taking up, pursuit and prudential supervision of business of Electronic Money Institutions

Part 2 of the Regulations sets out those institutions that may issue electronic money. In this regard, banks, building societies, credit unions¹⁵ , certain public authorities, central banks, etc. may issue electronic money without having to seek authorisation. It therefore also sets the requirements that relate to the authorisation of electronic money institutions and registration of small electronic money institutions, the conditions of the authorisation including the capital requirements, initial capital, and safeguarding requirements for electronic money holders’ funds and payment services users’ funds, etc.

15 Credit unions may only issue electronic money subject to the following requirements: approval by the Registrar of Credit Unions to issue electronic money under the Credit Union Act 1997 , and meeting the safeguarding requirements in Chapter 6 of Part 2 of these Regulations.

Part 2 also stipulates the conditions for electronic money institutions to establish a branch or provide services in another Member State, the conditions by which the Bank may withdraw an authorisation, and sets out rules on outsourcing arrangements including the use of agents and distributors, and the additional activities that electronic money institutions may engage in.

Part 2 of the Regulations also sets out the legal framework in relation to the acquisitions regime for electronic money institutions, providing for a similar treatment to that of other types of financial institutions. The Regulations set out a clear and transparent notification and decision-making process for the Bank; the period allowed for the Bank to carry out the assessment and limits on interruptions to the assessment period where more information or clarification is required; sets out the prudential criteria for the supervisory assessment; and contains a defined set of assessment criteria for the proposed acquirer.

Part 3 — Issuance and Redeemability of Electronic Money

Part 3 of the Regulations sets out the requirements to be met by all electronic money issuers when issuing and redeeming electronic money. Electronic money must be issued and redeemed at par value and issuers are not permitted to award interest on the outstanding balances. Redemption must be provided at any time upon request. Redemption may be subject to proportionate fees to cover actual costs in certain cases.

Part 4 — Powers and Duties of the Bank

Part 4 of the Regulations makes provision in respect of the Bank. In particular, it confers on the Bank functions in relation to the supervision and enforcement of certain provisions of the Regulations. It also sets out the requirements in relation to the Bank cooperating and exchanging information with other competent authorities in the EEA. It also provides for out-of-court redress and appeals procedures, giving the Financial Services Ombudsman jurisdiction over the settlement of disputes.

Part 5 — Offences

Part 5 of the Regulations provides for criminal offences, including making it an offence for a person to issue electronic money in the State unless it is a person that may issue electronic money under Regulation 6, providing false or misleading information, obstruction of an authorised officer, misappropriation of users’ funds, and failure to keep appropriate records.

Part 6 — Transitional Arrangements

Part 6 of the Regulations makes transitional provisions for persons who have issued electronic money before 30th April 2011 to continue to do so for a limited time while they take steps to comply with these Regulations.

Part 7 — Amendments and Revocation of other Legislation

Part 7 of the Regulations makes amendments to certain other primary and secondary legislation and revokes the existing European Communities (Electronic Money) Regulations 2002 ( S.I. No. 221 of 2002 ).

Footnotes