Financial Services Act 2021

50 In regulation 1, after paragraph (2) insert—

“(2A) For the purposes of these Regulations, an FCA investment firm is “relevant” if—

(a) it has a branch or subsidiary in a country or territory outside the United Kingdom that is a financial institution, and

(b) it is not a small and non-interconnected firm,

subject to paragraphs (2B) and (2C).

(2B) Where an FCA investment firm which has not been a small and non-interconnected firm for a period becomes a small and non-interconnected firm, it only ceases to be a relevant FCA investment firm once—

(a) it has been a small and non-interconnected firm for a continuous period of six months, and

(b) it has notified the Financial Conduct Authority.

(2C) Where an FCA investment firm which has been a small and non-interconnected firm for a period determines that it is no longer a small and non-interconnected firm—

(a) it must notify the Financial Conduct Authority, and

(b) it does not become a relevant FCA investment firm until—

(i) the end of the period of 12 months beginning with the day on which it made the determination, or

(ii) if the notification specifies an earlier date, that date.”