2.—(1) Part III of Schedule 3 to the Financial Services and Markets Act 2000(1) is amended as follows.
(2) In paragraph 20, after sub-paragraph (3) insert—
“(3A) If the firm’s EEA right derives from any of the insurance directives, the Authority must, within one month of receiving the notice of intention—
(a)give notice in specified terms (“a consent notice”) to the host state regulator; or
(b)give written notice to the firm of—
(i)its refusal to give a consent notice; and
(ii)its reasons for that refusal.”.
(3) In sub-paragraph (4) of that paragraph, after “sub-paragraph (3)” insert “or gives a consent notice”.
(4) After that sub-paragraph insert—
“(4A) If the firm is given notice under sub-paragraph (3A)(b), it may refer the matter to the Tribunal.
(4B) If the firm’s EEA right derives from any of the insurance directives, it must not provide the services to which its notice of intention relates until it has received written notice under sub-paragraph (4).
(4C) Rules may specify the procedure to be followed by the Authority under this paragraph.”.
(5) Omit sub-paragraph (5) of that paragraph.
(6) In paragraph 21(1)(b), for “(5)” substitute “(4B)”.