C1Part XIII Incoming Firms: Intervention by Authority
Interpretation
F1194AF1Contravention by relevant EEA firm with UK branch of requirement under markets in financial instruments directive: Authority primarily responsible for securing compliance
1
This section applies if—
a
a relevant EEA firm has a branch in the United Kingdom; and
b
the Authority ascertains that the firm has contravened, or is contravening, a requirement falling within subsection (3) (in a case to which Article 62.2 of the markets in financial instruments directive applies).
2
“Relevant EEA firm” means an EEA firm falling within paragraph 5(a) or (b) of Schedule 3 which is exercising in the United Kingdom an EEA right deriving from the markets in financial instruments directive.
3
A requirement falls within this subsection if it is imposed on the firm—
a
by any provision of or made under this Act which implements the markets in financial instruments directive; or
b
by any directly applicable Community regulation made under that directive.
4
The Authority must give the firm written notice which—
a
requires the firm to put an end to the contravention;
b
states that the Authority's power of intervention will become exercisable in relation to the firm if the firm continues the contravention; and
c
indicates any requirements that the Authority proposes to impose on the firm in exercise of its power of intervention in the event of the power becoming exercisable.
5
The Authority may exercise its power of intervention in respect of the firm if—
a
a reasonable time has expired since the giving of the notice under subsection (4);
b
the firm has failed to put an end to the contravention within that time; and
c
the Authority has informed the firm's home state regulator of its intention to exercise its power of intervention in respect of the firm.
6
Subsection (5) applies whether or not the Authority's power of intervention is also exercisable as a result of section 194.
7
If the Authority exercises its power of intervention in respect of a relevant EEA firm by virtue of subsection (5), it must at the earliest opportunity inform the firm's home state regulator and the Commission of—
a
the fact that the Authority has exercised that power in respect of the firm; and
b
any requirements it has imposed on the firm in exercise of the power.
Pt. 13 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a) (with art. 23(2))
Pt. 13 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 32; S.I. 2001/3538, art. 2(1)
Pt. 13 extended (5.10.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/3084, art. 2(7); S.I. 2001/3538, art. 2(1)
Pt 13 excluded (1.12.2001) by S.I. 2001/3592, art. 107(2) (with art. 23(2))