The new electronic money entity which carries the denomination EME assumes the form of a public limited company, and is required to have minimum share capitol of one million euros available, fully subscribed and paid up in cash. The new Royal Decree contains rules on the upkeep of capital, as well as demands in relation to the composition of the board of directors and as well as the experience and professional reputation of its members. The volume of electronic money created as to be assured via specific low risk activities. Following the timely authorization by the Treasury, these societies will be entered in a specific register kept by the Bank of Spain, authority that hereinafter will execute supervising functions related to the EMEs.
The application for authorization for EMEs should be directed to the Director General of the Treasury and Financial Policy, who forms part of the Treasury. Together with this application a range of other documentation is also needed, such as the articles of association, the program of activities, the list of the members that will make up the association, and supporting documentation of having already made the required deposit equivalent to 20% of the minimum social capital to the Bank of Spain.
The Royal Decree states for cases of creation and management of Spanish or foreign EMEs by investors covered by Spanish law, and hence the regulations of Royal Decree 322/2008, the authorization of an EME granted outside Spain is not sufficient for it to develop business in Spain. In the case where the control of the Spanish EME would be carried out by a financial or banking entity authorized in another member state of the EU, the Bank of Spain, within the framework of its intervention in the authorization process, would consult the supervising authorities of the said entity. For such cases it is not planned to create a guarantee, a method of assurance that we believe would conflict with the community law, whilst for cases concerning foreign investors and EMEs residing outside of the EU who plan to develop this business in Spain a guarantee would be required, which would cover all of the activities of said business.