Regulatory Requirements and Guidance for Electronic Money Institutions 

The Central Bank of Ireland ("Central Bank") has set out prudential requirements for E-Money institutions authorised in Ireland.  These requirements are contained in the document entitled “Prudential requirements for E-Money institutions authorised under  S.I. no. 183 of 2011 - European Communities (Electronic Money) Regulations, 2011” (‘the prudential requirements’) which is available to download from the Central Bank’s website here.  

Books and Records Requirements

The Central Bank has drawn up a list of the records that E-Money institutions are required to keep (Requirement 5.8 of the prudential requirements refers).  

Capital Requirements

An E-Money institution authorised under the implementing regulations is subject to both an initial capital requirement and an on-going capital requirement as set out in the chapter on capital in the prudential requirements document (Section 2 of the prudential requirements refers).  

Safeguarding of Users’ Funds

Every E-Money institution authorised in the State must satisfy the Central Bank that it has adequate arrangements in place to safeguard the funds of E-Money holders.  The requirements that firms must comply with in this regard are set out in the chapters on safeguarding users’ funds in the prudential requirements document (Sections 3 and 4 of the prudential requirements refers).

Outsourcing

An E-Money institution may outsource operational functions relating to the issuance of E-money and the provision of related or unrelated payment services once the outsourcing arrangements are in compliance with Requirement 5.2 of the prudential requirements.

Consumer Protection Requirements

Where regulated entities are providing payment services and/or issuing electronic money which fall within the scope of the European Communities (Payment Services) Regulations 2009 (“the Payment Services Regulations 2009”) and/or the European Communities (Electronic Money) Regulations 2011 (“the Electronic Money Regulations 2011”), the following conduct of business requirements apply:

  • the Payment Services Regulations 2009;
  • the Electronic Money Regulations 2011; and
  • the Consumer Protection Code 2012

 

Where regulated entities are providing credit under credit agreements which fall within the scope of the European Communities (Consumer Credit Agreements) Regulations 2010 (“the Consumer Credit Agreements Regulations 2010”), the following conduct of business requirements apply:

 

  • the Consumer Credit Agreements Regulations 2010;
  • the Consumer Protection Code 2012

 

The Consumer Credit Act, 1995 will continue to apply to the granting of credit that does not fall within the scope of the Consumer Credit Agreements Regulations 2010, including credit for amounts under €200 and over €75,000.

[On 19 October 2011 the Central Bank published the revised Consumer Protection Code (2012 Code), which comes into effect from 1 January 2012.  The 2012 Code sets out that where regulated entities are providing payment services, issuing electronic money or providing credit agreements, certain provisions will apply.  See the 2012 Code  for further details.]