Section 3: Prudential provisions

Electronic money institutions are required to comply with management standards designed to ensure their solvency and the balance of their financial structure. They shall also have an appropriate internal control system enabling them in particular to measure the risks and profitability of their activities, including when they entrust essential or significant operational functions or other tasks to third parties. They shall maintain an adequate level of own funds. The conditions…

The own funds of an electronic money institution may not be less than the requirements laid down in I of Article L. 526-9 and in the second paragraph of Article L. 526-27.

The Autorité de contrôle prudentiel et de résolution may issue a recommendation or an injunction to electronic money institutions to ensure the existence of sufficient own funds for the issuance and management of electronic money, in particular where activities other than the issuance and management of electronic money adversely affect or threaten to adversely affect the financial soundness of the electronic money institution. The Autorité de contrôle prudentiel et de…

I. – Electronic money institutions are required to comply with articles L. 522-14 to L. 522-18 when they provide payment services within the meaning of 1° of article L. 526-2. II. – Electronic money institutions are required to comply with article L. 522-7-1 when they provide the services mentioned in 7° and 8° of II of article L. 314-1.

An electronic money institution which intends to outsource operational functions shall inform the Autorité de contrôle prudentiel et de résolution. Essential operational functions may not be outsourced in such a way as to seriously impair the quality of the electronic money institution’s internal control or to prevent the Autorité de contrôle prudentiel et de résolution from monitoring the institution’s compliance with all the obligations to which it is subject. The…

Funds collected in return for the issuance of electronic money shall be protected in accordance with one of the following two methods: 1° The funds collected shall under no circumstances be confused with the funds of natural or legal persons other than the electronic money holders. Cash collected in return for the issue of electronic money shall be deposited in a separate account with a credit institution authorised to receive…

Where the funds remitted may be used, on the one hand, as consideration for the issue of electronic money and, on the other hand, for services other than the issue of electronic money, the part of the funds collected as consideration for the issue of electronic money is protected in accordance with the terms and conditions set out in Article L. 526-32. If this portion is variable or cannot be…

Electronic money institutions shall provide their customers, as well as any person who so requests, with any useful information on the procedures for protecting the funds collected. Customers shall be informed of any changes. This information may not be used for advertising purposes.