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PART III |
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EXERCISE OF PASSPORT RIGHTS BY UK FIRMS |
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Establishment |
| | 18. - (1) A UK firm may not exercise an EEA right to establish a branch unless three conditions are satisfied.
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(2) The first is that the firm has given the Authority, in the specified way, notice of its intention to establish a branch ("a notice of intention") which-
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(a) identifies the activities which it seeks to carry on through the branch; and |
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(b) includes such other information as may be specified. |
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(3) The second is that the Authority has given notice in specified terms ("a consent notice") to the host state regulator.
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(4) The third is that-
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(a) the host state regulator has notified the firm (or, where the EEA right in question derives from any of the insurance directives, the Authority) of the applicable provisions; or |
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(b) two months have elapsed beginning with the date on which the Authority gave the consent notice. |
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(5) If the firm's EEA right derives from the investment services directive or the second banking coordination directive and the first condition is satisfied, the Authority must give a consent notice to the host state regulator unless it has reason to doubt the adequacy of the firm's resources or its administrative structure.
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(6) If the firm's EEA right derives from any of the insurance directives and the first condition is satisfied, the Authority must give a consent notice unless it has reason-
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(a) to doubt the adequacy of the firm's resources or its administrative structure, or |
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(b) to question the reputation, qualifications or experience of the directors or managers of the firm or its proposed main agent, |
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in relation to the business to be conducted through the proposed branch.
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(7) If the Authority proposes to refuse to give a consent notice it must give the firm concerned a warning notice.
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(8) If the firm's EEA right derives from any of the insurance directives and the host state regulator has notified it of the applicable provisions, the Authority must inform the firm of those provisions.
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(9) Rules may specify the procedure to be followed by the Authority in exercising its functions under this paragraph.
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(10) Rules may, in relation to a firm to which the Authority's rule-making powers under Part IX do not apply, make provision as to the consequences of the firm's contravention of sub-paragraph (1).
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(11) If the Authority gives a consent notice it must inform the firm concerned that it has done so.
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(12) If the Authority decides to refuse to give a consent notice-
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(a) it must, within three months beginning with the date when it received the notice of intention, give the person who gave that notice a decision notice to that effect; and |
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(b) that person may refer the matter to the Tribunal. |
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(13) In this paragraph, "applicable provisions" means the host state rules with which the firm will be required to comply when providing services through the proposed branch in the EEA State concerned.
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(14) In sub-paragraph (13), "host state rules" means rules-
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(a) made in accordance with the relevant single market directive; and |
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(b) which are the responsibility of the EEA State concerned (both as to implementation and as to supervision of compliance) in accordance with that directive. |
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(15) "Specified" means specified in rules.
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Services |
| | 19. - (1) A UK firm may not exercise an EEA right to provide services unless-
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(a) the firm has given the Authority, in the specified way, notice of its intention to provide services ("a notice of intention") which- |
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(i) identifies the activities which it seeks to carry out by way of provision of services; and
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(ii) includes such other information as may be specified; and
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(b) if the EEA right in question derives from any of the insurance directives, the Authority- |
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(i) has given notice in prescribed terms ("a consent notice") to the host state regulator; and
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(ii) has informed the firm of that fact.
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(2) The Authority may refuse to give a consent notice only if it has reason to doubt-
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(a) the adequacy of the firm's resources or its administrative structure, or |
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(b) the reputation, qualifications or experience of the directors or managers of the firm or its proposed main agent, |
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in relation to the services which the firm proposes to provide.
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(3) If the Authority proposes to refuse to give a consent notice it must give the firm concerned a warning notice.
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(4) If the Authority decides to refuse to give a consent notice-
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(a) it must, within three months beginning with the date when it received the notice of intention, give the person who gave that notice a decision notice to that effect; and |
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(b) that person may refer the matter to the Tribunal. |
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(5) If the Authority gives a consent notice it must inform the firm concerned that it has done so.
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(6) If the firm's EEA right derives from the investment services directive or a banking coordination directive, the Authority must inform the host state regulator about the notice of intention.
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(7) Rules may specify the procedure to be followed by the Authority in exercising its functions under this paragraph.
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(8) Rules may, in relation to a firm to which the Authority's rule-making powers under Part IX do not apply, make provision as to the consequences of the firm's contravention of sub-paragraph (1).
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(9) "Specified" means specified in rules.
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Continuing regulation of UK firms |
| | 20. - (1) Regulations may make such provision as the Treasury consider appropriate in relation to a UK firm's exercise of EEA rights, and may in particular provide for the application (with or without modification) of any provision of, or made under, this Act in relation to an activity of a UK firm.
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(2) Regulations may-
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(a) prescribe the procedure to be followed in relation to a change (or proposed change) of a prescribed kind relating to a UK firm or to an activity that it carries on; |
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(b) make provision with respect to the consequences of the firm's failure to comply with a provision of the regulations. |
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(3) Where a provision of the kind mentioned in sub-paragraph (2) requires the Authority's consent to a change (or proposed change)-
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(a) consent may be refused only on prescribed grounds; and |
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(b) a person refused consent may refer the matter to the Tribunal. |
