(1) An electronic money institution must ensure that -
(a) any relevant funds are covered by -
(i) an insurance policy with an authorised insurer;
(ii) a comparable guarantee from an authorised insurer; or
(iii) a comparable guarantee from an authorised credit institution; and
(b) 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 -
(i) 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
(ii) be used only for holding such proceeds, or for holding those proceeds together with funds or assets held in accordance with regulation 21(3).
(2) 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.
(3) In this regulation -
"author
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