The Regulation of Electronic Money Institutions in the United Kingdom

The Electronic Money Directives of the European Union, concerned with the regulation and prudential supervision of electronic money institutions, have now been implemented in the United Kingdom. The implementing provisions are found in a number of disparate legislative instruments. This article identifies the various legislative instruments concerned and articulates the key elements of the regulatory regime that is established. It also considers some of the potential difficulties in the way of achieving the objectives of the regulatory regime, particularly enhancing consumer confidence in e-money products which are compared with the use of credit and debit cards as means of payment for e-commerce transactions.