(1) An electronic money institution must keep relevant funds segregated from any other funds that it holds.
(2) Where the institution continues to hold the relevant funds at the end of the business day following the day on which they were received it must -
(a) place them in a separate account that it holds with an authorised credit institution or the Bank of England; or
(b) invest the relevant funds in secure, liquid, low-risk assets ("relevant assets") and place those assets in a separate account with an authorised custodian.
(3) An account in which relevant funds or relevant assets are placed under paragraph (2) must -
(a) be designated in such a way as to show that it is an account which is held for the purpose of safeguarding relevant funds or relevant assets in accordance with this regulation; and
(b) be used only for holding those funds or assets , or for holding those funds or assets together with proceeds of an insurance policy or guarantee held in accordance with regulation 2
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