sQuid and eMoney regulations

Regulatory Environment
sQuidcard Limited is an issuer of eMoney. This is a regulated activity under the Financial Services and Markets Act 2002. This Act implemented into UK law the European Commission eMoney Directive adopted in 2001. The regulations are enforced in the UK by the Financial Services Authority.

sQuidcard was issued with a Small eMoney issuers certificate by the FSA in November 2007 and we are listed on the FSA register. sQuidcard operates within the conditions set out within its certificate and provides certain operational information to the FSA in compliance with its Provision of Information requirements.

sQuidcard is also registered with HM Revenue and Customs under the Money Laundering Regulations.

 

eMoney regulatory developments

Background
In October 2008, the European Commission published proposals to revise eMoney Directive (EMD) which was adopted at an EU level in 2001 and implemented in the UK through the Financial Services and Markets Act (FSMA) in 2002. The main objectives of the proposal have been to:

  • - Enable innovation and the design of new and secure electronic money services
  • - Provide market access to new players and foster real and effective competition between all market participants
  • - Modernise the provisions of the EMD ensuing consistency with the Payment Services Directive (PSD)


The key factors the Commission proposal revises are:

- The clarification of the definition of eMoney
- Lightening of the prudential regime and aligning them more closely with the PSD
- Widening the types of business eMoney licensed issuers (ELMI) can undertake
- Improving the safeguarding requirements over funds held by ELMIs on behalf of customers
- Clarifying the eMoney redemption requirements
- Maximising harmonization
- Allowing ELMIs to set up branches in other member states under the passporting provisions
- Clarifying the anti money laundering position


HM Treasury issued a Consultation document in January 2009 asking for responses to the proposed revisions to the EMD.
sQuidcard has provided a response, which you can see by viewing this PDF.