5.—(1) Subject to sub-paragraph (2) below, the requirements of this paragraph are—
(a)that the institution has given a notice to the UK authority, and to the relevant supervisory authority in the member State in which it has established the branch, stating the details of the proposed change;
(b)that that authority has received from the UK authority a notice under paragraph 6(1) below; and
(c)that either that authority has informed the institution that it may make the change, or the period of one month beginning with the day on which it gave that authority the notice mentioned in paragraph (a) above has elapsed.
(2) In the case of a change occasioned by circumstances beyond the institution’s control, the requirements of this paragraph are that the institution has, as soon as practicable (whether before or after the change), given a notice to the UK authority, and to the relevant supervisory authority in the member State in which it has established the branch, stating the details of the change.
6.—(1) The UK authority shall, within the period of one month beginning with the date on which the notice under paragraph 5(1) above was received—
(a)give a notice to the relevant supervisory authority informing it of the details of the proposed change; or
(b)refuse to give such a notice.
(2) The UK authority may not refuse to give a notice under sub-paragraph (1) above unless, having regard to the changes and to the home-regulated activities proposed to be carried on, the UK authority doubts the adequacy of the administrative structure or the financial situation of the institution.
(3) Before determining to give or to refuse to give such a notice, the UK authority—
(a)shall seek and take into account the views of any connected UK authority in relation to any changes to the home-regulated activities proposed to be carried on; and
(b)may regard itself as satisfied in relation to any matter relating to those activities which is relevant to the decision if any such authority informs the UK authority that it is so satisfied.
(4) In reaching a determination as to the adequacy of the administrative structure, the UK authority may have regard to the adequacy of management, systems and controls and the presence of relevant skills needed for the activities proposed to be carried on.
(5) The UK authority shall, within the period of one month referred to in sub-paragraph (1) above, notify the institution—
(a)that it has given the notice referred to in that sub-paragraph, stating the date on which it did so; or
(b)that it refused to give the notice, stating the reasons for the refusal and giving particulars of the rights conferred by section 27 of the Banking Act or, as the case may be, section 46 of the Building Societies Act.