Request for

Contact Us

Microsoft Partner Network membership
Microsoft BizSpark Startup member
VMWare member
Valid XHTML 1.0 Transitional
Valid CSS!

Postcode Anywhere

PayPal for Business


Home- > FSA Regulation
Abstract Technology - FSA Regulation

Information about FSA regulation

 

The issue of electronic money is a 'regulated activity' under the Financial Services and Markets Act 2000 and the EU directive on electronic money. Abstract Technology Ltd can provide other companies which are authorised by the FSA to issue electronic money as a specialised electronic money issuer subject to regulatory requirements and supervision.

Key features of the regulation by the FSA include

  • Capital requirements & liquidity

    The authorised FSA company business is required to maintain minimum levels of capital. There is an initial and continuous threshold of € 1 million own funds (approx £ 615, 000). The FSA authorised company must also hold sufficiently liquid assets to be able to redeem all e-money issued and to meet their working capital requirements.

  • Management & Vetting at Entry

    The management is scrutinised by the FSA and all individuals who perform key functions within the authorised FSA compant business need to be approved by the FSA as "fit and proper". Significant responsibilities such as finance and technical development and money laundering reporting must be apportioned between senior staff.

  • Systems & Controls

    The authorised company must protect their businesses from technological risks such as unauthorised creation, transfer or redemption of e-money. Care must be taken to implement systems and policies to ensure compliance with the FSA's codes of practice. As a regulated company, any e-money issuer must comply with the FSA's principles for business which include observing proper standards of market conduct, arranging adequate customer complaint procedures and having in place adequate risk management systems.

  • Money Laundering

    The authorised company needs to comply with both the FSA Money Laundering Handbook and the Money Laundering Regulations 1993. A senior member of staff needs to be appointed and approved by the FSA to oversee appropriate policies and procedures.

  • Limitation on Business Activity

    e-money issuing must be legally and operationally 'ring-fenced' from any other area of business risk, e.g. granting credit is disallowed.

You may contact Abstract Technology with any questions, clarification request and discussion on services provided and the question on FSA regulation.

Home | Contact us | Site map | Terms of use | Privacy | FSA Regulation | Money Laundering Policy| Resources | Newsletter subscription | FAQ
© 2004 - Abstract Technology Ltd. Online Payment Enabler & Offshore Outsourcing System Development