Section 22

An electronic money institution must ensure that— any relevant funds are covered by— an insurance policy with an authorised insurer; a comparable guarantee from an authorised insurer; or a comparable guarantee from an authorised credit institution; and the proceeds of any such insurance policy or guarantee are payable upon an insolvency event into a separate account held by the electronic money institution which must— be designated in such a way as to show that it is an account which is held for the purpose of safeguarding relevant funds in accordance with this regulation; and be used only for holding such proceeds , or for holding those proceeds together with funds or assets held in accordance with regulation 21(3). No person other than the electronic money institution may have any interest or right over the proceeds placed in an account in accordance with paragraph (1)(b) except as provided by this regulation. In this regulation— “authorised credit institution” has the same meaning as in regulation 21; “authorised insurer” means a person authorised for the purposes of the 2000 Act to effect and carry out a contract of general insurance as principal ..., other than a person in the same group as the electronic money institution; “electronic money institution special administration” has the same meaning as in the Payment and Electronic Money Institution Insolvency Regulations 2021 (see regulation 4(3)); “insolvency event” means any of the following procedures in relation to an electronic money institution— the making of a winding-up order; the passing of a resolution for voluntary winding-up; the entry of the institution into administration; the appointment of a receiver or manager of the institution's property; the approval of a proposed voluntary arrangement (being a composition in satisfaction of debts or a scheme of arrangement); the making of a bankruptcy order; in Scotland, the award of sequestration; the making of any deed of arrangement for the benefit of creditors or, in Scotland, the execution of a trust deed for creditors; the conclusion of any composition contract with creditors; the making of an insolvency administration order or, in Scotland, the execution of a trust deed for creditors; the conclusion of any composition contract with creditors; ... the making of an insolvency administration order or, in Scotland, sequestration, in respect of the estate of a deceased person ; the entry of the institution into payment institution special administration; or the entry of the institution into investment bank special administration. “investment bank special administration” has the same meaning as in the Investment Bank Special Administration Regulations 2011 (see regulation 3(1) of those Regulations).

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