E-money impact assessment
National competent authorities have been asking firms to carry out an assessment of the impact of this clarification on their business models, products and regulatory classification.
Our e-money impact assessment is designed to meet that regulatory need. We provide a clear, legally grounded analysis of how a specific regulatory interpretation affects your e-money activities, with an emphasis on both compliance risk and business impact.
What the Assessment Covers
We assess how the regulatory interpretation applies to your particular business model, with attention to legal, operational and commercial consequences.
Our analysis starts from the regulatory interpretation set out in EBA Q&A 2022_6336, which addresses how the definition of electronic money should be understood in practice, including the role of acceptance by third parties and the criteria for a product to qualify as e-money under Directive 2009/110/EC.
From there, we consider the areas of impact most relevant to e-money issuers, including:
- the way your products are classified under e-money regulation and whether they continue to meet the definition relied upon by your regulator;
- contractual frameworks with merchants, partners and distributors where product acceptance or settlement models may be affected by the interpretation;
- licensing, compliance and reporting frameworks required under Electronic Money Directive (EMD) and related regulatory regimes;
- possible effects on safeguarding and capital arrangements;
- implications for your relationships with investors, counterparties and scheme partners.
Our analysis focuses on articulating the practical effects of the regulatory interpretation on your business operations and regulatory profile.
Written Assessment
At the conclusion of our work, you will receive a written Impact Assessment Report that sets out our analysis in a clear and structured form. The report explains the relevant legal interpretation, applies it to your business model and details the likely impacts on products, contracts, compliance frameworks and risk areas.
Because this assessment is conducted at the request of — or in response to — regulatory scrutiny, the report can be shared with your competent authority where appropriate. It is drafted with regulatory audiences in mind and can serve as a basis for supervisory discussions or submissions.
In addition to supporting regulatory engagement, the report is also suitable for internal governance, board oversight and strategic decision-making.
Next Steps
If your business issues e-money in the EU and you have been asked by your competent authority for an impact assessment, contact FM Legal for a confidential discussion on how we can assist.
