4.—(1) The Authority must not give a Part IV permission to an applicant who is an investment firm unless it is satisfied that the applicant complies with—
(a)the provisions contained in or made under the Act implementing Chapter I of Title II of the markets in financial instruments directive; and
(b)any directly applicable Community regulation made under that Chapter.
(2) Paragraph (1) also applies if an authorised person becomes an investment firm by virtue of a variation of his Part IV permission.
(3) “Investment firm” has the meaning given in section 424A of the Act(1).