# EMRs 2011: The Electronic Money Regulations 2011

Source page: https://protegra.io/licensing/laws/gb-electronic-money-regulations-2011/

The Electronic Money Regulations 2011 (S.I. 2011/99) is the primary United Kingdom statutory instrument governing the issuance and redemption of electronic money and prudential supervision of electronic money issuers. Enforced by the Financial Conduct Authority (FCA), it establishes the statutory licensing frameworks for Authorised Electronic Money Institutions (AEMIs) and Small Electronic Money Institutions (Small EMIs), alongside registration requirements for electronic money agents.

## At a glance

| Official title | The Electronic Money Regulations 2011 [1] |
| --- | --- |
| English title | The Electronic Money Regulations 2011 |
| Citation | S.I. 2011/99 |
| Jurisdiction | [United Kingdom](https://protegra.io/licensing/jurisdictions/united-kingdom/) |
| Type | regulation |
| Adopted | 2011-01-18 |
| In force from | 2011-04-30 |
| Status | in force |

## Full text

**Official full text:** [The Electronic Money Regulations 2011 (HTML, en)](https://www.legislation.gov.uk/uksi/2011/99) [1] · 1,219 KB · file checked 2026-09-24 · consolidated version of 2026-02-25

Official page: [legislation.gov.uk](https://www.legislation.gov.uk/uksi/2011/99/contents) [1] · [archived copy](https://web.archive.org/web/20260903133527/https://www.legislation.gov.uk/uksi/2011/99)

## Summary

The Electronic Money Regulations 2011 (SI 2011/99) form the primary statutory framework governing electronic money issuance, prudential supervision, and e-money institutions in the United Kingdom. Supervised and enforced by the Financial Conduct Authority (FCA), the regulations apply to electronic money institutions, credit institutions, post office entities, and government bodies issuing electronic money. The regulations establish two principal licensing categories: Authorised Electronic Money Institutions (AEMIs) and Small Electronic Money Institutions (Small EMIs) for firms with average outstanding electronic money not exceeding 5 million euros, alongside registration requirements for electronic money agents. Key statutory obligations require institutions to maintain initial capital (at least 350,000 euros for AEMIs) and ongoing own funds (under Method D plus payment service methods), strictly safeguard customer funds in segregated accounts or through approved insurance policies/guarantees, issue and redeem e-money at par value without delay on demand, refrain from awarding interest on e-money holdings, and obtain prior FCA regulatory approval under FSMA Part 12 for acquiring or increasing qualifying control across statutory percentage thresholds.

Summary written by the Atlas from the official text; the law itself prevails.

## Main articles

- **reg. 3 & 3ZA**: Excludes limited network payment instruments, specific telecommunication services, and stablecoins backed by assets from the definition and regulatory scope of electronic money.
- **reg. 4**: Requires the FCA to establish and maintain a public register of authorised EMIs, small EMIs, agents, and persons operating under exclusions.
- **reg. 6**: Sets statutory conditions for authorization as an electronic money institution, including holding required initial capital, UK head office, and fit and proper management.
- **reg. 9**: Requires the FCA to determine complete authorization applications within three months, and in any event within twelve months of receiving an application.
- **reg. 13**: Establishes eligibility conditions for small electronic money institutions, including a cap of 5 million euros on average outstanding electronic money.
- **reg. 19**: Requires authorised electronic money institutions to maintain at all times own funds equal to or exceeding 350,000 euros or their calculated ongoing capital requirement.
- **reg. 20, 21 & 22**: Mandates electronic money institutions to safeguard funds received in exchange for electronic money through segregated bank accounts, secure low-risk assets, or qualifying insurance guarantees.
- **reg. 24**: Establishes that in an insolvency event, claims of electronic money holders are paid from the segregated asset pool in absolute priority to all other creditors.
- **reg. 24A**: Applies modified provisions of the Banking Act 2009 to enable the electronic money institution special administration regime upon firm insolvency.
- **reg. 32**: Permits electronic money institutions to provide payment services, operational and closely related ancillary services, and operate payment systems alongside e-money issuance.
- **reg. 34**: Permits electronic money institutions to provide payment services through agents only if those agents are vetted and included on the FCA register.
- **reg. 39**: Obliges electronic money issuers to issue e-money at par value immediately upon receipt of funds and redeem it at par value at any time upon request.
- **reg. 40 & 41**: Requires redemption terms and any permitted proportionate fees to be clearly disclosed before contract conclusion, strictly limiting fees to specified circumstances.
- **reg. 45**: Strictly prohibits electronic money issuers from awarding interest or any other benefit related to the length of time electronic money is held.
- **reg. 51**: Empowers the FCA to impose unlimited financial penalties on any person who has contravened requirements imposed by or under the regulations.
- **reg. 63**: Prohibits issuing electronic money without authorization, registration, or exemption, creating a criminal offence punishable on indictment by up to two years' imprisonment.
- **Schedule 2**: Sets initial capital requirements of 350,000 euros for authorised EMIs and specifies own funds calculation methods, including Method D based on average outstanding e-money.
- **Schedule 3, para. 4**: Applies Part 12 of FSMA 2000, requiring proposed acquirers to obtain prior FCA approval before acquiring or increasing control across statutory ownership thresholds.

## Licences it governs

- [EMI · United KingdomSmall Electronic Money Institution (SEMI) RegistrationFCA](https://protegra.io/licensing/licences/emi/united-kingdom-semi/)
- [EMI · United KingdomAuthorised Electronic Money Institution (AEMI)FCA](https://protegra.io/licensing/licences/emi/united-kingdom/)

## Regulators that apply it

- [United KingdomFinancial Conduct Authority (FCA)The Financial Conduct Authority regulates the conduct of around 35,500 financial services firms and financial markets across the United King](https://protegra.io/licensing/regulators/fca-uk/)

## Upcoming changes

- Phased repeal under Financial Services and Markets Act 2023 (c. 29), Sch. 1 Pt. 2: Revocation of retained EU law provisions and transition of electronic money regulation into the FCA Handbook under the Smarter Regulatory Framework. [2]
- Consolidation of cryptoasset boundary under The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102): Carving out qualifying fiat-backed stablecoins from electronic money to regulate them under the FSMA cryptoasset regime. [3]
- Prospective amendments under Financial Services Act 2021 (c. 22), s. 23: Powers conferred on HM Treasury to amend or replace Gibraltar-related provisions (Schedule 5) governing electronic money institutions. [4]

## Sources

1. [legislation.gov.uk: contents](https://www.legislation.gov.uk/uksi/2011/99/contents): retrieved 2026-09-24
2. [legislation.gov.uk: contents](https://www.legislation.gov.uk/ukpga/2023/29/contents): retrieved 2026-09-24
3. [legislation.gov.uk: contents](https://www.legislation.gov.uk/uksi/2026/102/contents): retrieved 2026-09-24
4. [legislation.gov.uk: 23](https://www.legislation.gov.uk/ukpga/2021/22/section/23): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.