Schedule 3, Part 1, paragraph 2A(1A)

Section 137B of the 2000 Act (FCA general rules: clients’ money, right to rescind etc) applies as if— references to authorised persons were references to authorised electronic money institutions and small electronic money institutions; after subsection (1) there were inserted— Rules relating to the safeguarding of relevant assets held by an authorised electronic money institution, a small electronic money institution or a relevant credit union (“a relevant institution”) may— make any provision in relation to those relevant assets which might be made under subsection (1) in relation to clients’ money; treat two or more relevant assets as being part of a single asset pool, and make provision for the distribution of assets in that pool; authorise the retention by a relevant institution of income or capital gains accruing in relation to relevant assets; make provision as to the distribution of such income or capital gains which are not to be retained by the relevant institution. in subsection (2) the references to “clients’ money” and “money” were read as including a reference to relevant assets; after subsection (3), there were inserted— “Relevant assets” means assets held by a relevant institution to satisfy its obligations to safeguard funds received— including proceeds derived from the realisation of such assets. in exchange for electronic money that has been issued, or where no electronic money has been issued— from, or for the benefit of, a payment service user for the execution of a payment transaction, or from a payment service provider for the execution of a payment transaction on behalf of a payment service user, Assets which may be “relevant assets” include— money; insurance policies, including rights arising under those policies; guarantees, including rights arising under those guarantees; other investments, whether or not specified by the Treasury under section 22 of the 2000 Act. A “relevant credit union” means a credit union which issues electronic money. In paragraph (1A)(b), “asset pool” means a collection of assets collectively owned by those persons whose funds the relevant institution is required to safeguard, and in which the relevant institution may also have an interest.

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Source: legislation.gov.uk · retrieved 2026-09-04