“The insurance directives” means the first, second and third non-life insurance directives and the F37life assurance consolidation directive.

“First non-life insurance directive” means the Council Directive of 24 July 1973 on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life assurance (No.73/239/EEC).

“Second non-life insurance directive” means the Council Directive of 22 June 1988 on the co-ordination of laws, etc, and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC (No.88/357/EEC).

“Third non-life insurance directive” means the Council Directive of 18 June 1992 on the co-ordination of laws, etc, and amending Directives 73/239/EEC and 88/357/EEC (No.92/49/EEC).

“ Life assurance consolidation directive ” means Directive 2002/83/EC of the European Parliament and of the Council of 5th November 2002 concerning life assurance.

Once an EEA firm which is seeking to establish a branch in the United Kingdom in exercise of an EEA right satisfies the establishment conditions, it qualifies for authorisation.

Once an EEA firm which is seeking to provide services in the United Kingdom in exercise of an EEA right satisfies the service conditions, it qualifies for authorisation.

If an EEA firm falling within paragraph 5(a) is seeking to use a tied agent established in the United Kingdom in connection with the exercise of an EEA right deriving from the markets in financial instruments directive, this Part of this Schedule applies as if the firm were seeking to establish a branch in the United Kingdom.

An EEA firm which falls within paragraph 5(da) which establishes a branch in the United Kingdom, or provides services in the United Kingdom, in exercise of an EEA right qualifies for authorisation.

Sub-paragraphs (1) and (2) do not apply to an EEA firm falling within paragraph 5(da).

Sub-paragraph (2) does not apply to an EEA firm which falls within paragraph 5(a), (b) or (g), and only provides services in the exercise of its right under Article 18 of the emission allowance auctioning regulation.

An EEA firm which falls within paragraph 5(g) qualifies for authorisation.

Where the PRA receives a consent notice, it must give a copy to. the FCA without delay.

Where the FCA receives a consent notice it must in prescribed cases give a copy to the PRA without delay.

A notice under sub-paragraph (2)(b) or (c) must be given before the end of the period of two months beginning with the day on which the F155appropriate UK regulator received the consent notice.

For the purposes of this paragraph—

• “applicable provisions” means the host state rules with which the firm is required to comply when carrying on a permitted activity through a branch in the United Kingdom;

• F161“the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the relevant single market directive;

• “host state rules” means rules—

  1. a

     made in accordance with the relevant single market directive F111or for the purposes of the emission allowance auctioning regulation; and

  2. b

     which are the responsibility of the United Kingdom (both as to implementation and as to supervision of compliance) in accordance with that directive F149or for the purposes of that regulation; and

• “permitted activity” means an activity identified in the consent notice F29or regulator’s notice, as the case may be.

Where the PRA receives a relevant notice, it must give a copy to the FCA without delay.

Where the FCA receives a relevant notice, it must in prescribed cases give a copy to the PRA without delay.

If the appropriate UK regulator has received a relevant notice, it must, unless the firm falls within paragraph 5(a) or (e), notify the firm of the applicable provisions (if any).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A notice under sub-paragraph F170(2) must be given before the end of the period of two months beginning on the day on which the F148appropriate UK regulator received the relevant notice.

For the purposes of this paragraph—

• “applicable provisions” means the host state rules with which the firm is required to comply when carrying on a permitted activity by providing services in the United Kingdom;

• F147“the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the relevant single market directive;

• “host state rules” means rules—

  1. a

     made in accordance with the relevant single market directive F130or for the purposes of the emission allowance auctioning regulation; and

  2. b

     which are the responsibility of the United Kingdom (both as to implementation and as to supervision of compliance) in accordance with that directive F128or for the purposes of that regulation; and

• “permitted activity” means an activity identified in—

  1. a

     the regulator’s notice; or

  2. b

     where none is required by sub-paragraph (1), the notice of intention.

On qualifying for authorisation as a result of F83paragraph 12(1), (2) or (3), a firm has, in respect of each permitted activity which is a regulated activity, permission to carry it on through its United Kingdom branch (if it satisfies the establishment conditions) or by providing services in the United Kingdom (if it satisfies the service conditions).

Sub-paragraph (1) is to be read subject to F109paragraphs 15A(3) and 15ZA(1).

The permission is to be treated as being on terms equivalent to those appearing from the consent notice, regulator’s notice or notice of intention.

Sections F8921 and 39(1) of the M1Consumer Credit Act 1974 (business requiring a licence under that Act) do not apply in relation to the carrying on of a permitted activity which is Consumer Credit Act business by a firm which qualifies for authorisation as a result of paragraph 12, unless F7the Office of Fair Trading has exercised the power conferred on F8it by section 203 in relation to the firm.

“Consumer Credit Act business” has the same meaning as in section 203.

A firm which qualifies for authorisation as a result of paragraph 12(5) has, in respect of each permitted activity which is a regulated activity, permission to carry it on through its United Kingdom branch or by providing services in the United Kingdom.

The permission is to be treated as being on terms equivalent to those appearing in the authorisation granted to the firm under Article 3 of the reinsurance directive by its home state regulator (“its home authorisation”).

For the purposes of sub-paragraph (5), “ permitted activity ” means an activity which the firm is permitted to carry on under its home authorisation.

A firm that qualifies for authorisation as a result of paragraph 12(1) or (2) has permission to receive, transmit or submit a bid on behalf of its clients in the exercise of its rights under Article 18.3 of the emission allowance auctioning regulation if it has received authorisation under that provision from its home state regulator.

Permission under sub-paragraph (1) is to be treated as being on terms equivalent to those appearing in the authorisation granted to the firm pursuant to Article 18.3 of the emission allowance auctioning regulation.

A firm which qualifies for authorisation as a result of paragraph 12(9) has permission to receive, transmit and submit a bid on behalf of its clients in the exercise of its rights under Article 18.3 of the emission allowance auctioning regulation.

A firm which qualifies for authorisation as a result of paragraph 12(8) has permission to receive, transmit and submit a bid on its own account or on behalf of clients of its main business under Article 18.2 of the emission allowance auctioning regulation.

The permissions referred to in sub-paragraphs (3) and (4) are to be treated as being on terms equivalent to those appearing in the authorisation granted to the firm pursuant to Article 18.2 or 18.3 of the emission allowance auctioning regulation.

An EEA firm falling within paragraph 5(f) which wishes to manage a UKUCITS must apply to the F121appropriate UK regulator in the specified form for approval to manage that UCITS.

Where the EEA firm satisfies the conditions in paragraph 13 (establishment conditions) or paragraph 14 (service conditions), the F121appropriate UK regulator may only refuse the application if it determines that one of the grounds set out in sub-paragraph (3) applies.

The F121appropriate UK regulator must give a notice to the EEA firm, the firm's home state regulator and the Commission of the F121appropriate UK regulator's determination under sub-paragraph (2).

Before giving a notice under sub-paragraph (4), the F121appropriate UK regulator must consult the home state regulator of the firm.

In this paragraph—

• F115“the appropriate UK regulator” means whichever of the FCA and the PRA is the competent authority for the purposes of the UCITS directive;

• “specified” means specified—

  1. a

     in rules made by the F121appropriate UK regulator to implement the UCITS directive, or

  2. b

     in any directly applicable Community regulation or decision made under the UCITS directive;

• “UCITS home state rules” means requirements which are imposed by or under this Act so far as relating to matters falling within Article 19(3) and (4) of the UCITS directive.

Within a reasonable time after the end of the period for making representations, the F112appropriate UK regulator must decide, in the light of any representations made to it during that period by a person to whom notice has been given under paragraph 15A(4), whether to withdraw the notice.

The management company to whom the decision notice is given may refer the matter to the Tribunal.

In this paragraph “the appropriate UK regulator” has the same meaning as in paragraph 15A.

This paragraph applies to an EEA firm which is not qualified for authorisation under paragraph 12.

Section 26 does not apply to an agreement entered into by the firm.

Section 27 does not apply to an agreement in relation to which the firm is a third party for the purposes of that section.

Section 29 does not apply to an agreement in relation to which the firm is the deposit-taker.

F45Subject to F85sub-paragraphs (5ZA) F159, (5ZB) and (5A), a UK firm may not exercise an EEA right to establish a branch unless three conditions are satisfied.

F69Subject to sub-paragraph (5B), the activities identified in a notice of intention may include activities which are not regulated activities.

This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the reinsurance directive.

This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the emission allowance auctioning regulation, in respect of its exercise of that EEA right.

If the firm is a UK investment firm, a notice of intention may not include ancillary services unless such services are to be provided in connection with the carrying on of one or more investment services and activities.

In sub-paragraph (5B) “ancillary services” has the meaning given in Article 4.1.3 of the markets in financial instruments directive.

If the firm’s EEA right derives from F15the banking consolidation directive, F100F70. . . or, in the case of a credit institution authorised under the banking consolidation directive, the markets in financial instruments directive and the first condition is satisfied, the F146appropriate UK regulator must give a consent notice to the host state regulator unless it has reason to doubt the adequacy of the firm’s resources or its administrative structure.

If the firm's EEA right derives from the UCITS directive and the first condition is satisfied, the F146appropriate UK regulator must give a consent notice and information about the compensation scheme to the host state regulator unless it has reason to doubt the adequacy of the firm's resources or its administrative structure, and must do so within two months beginning with the date on which it received the firm's notice of intention.

If the firm is a UK investment firm and the first condition is satisfied, the F146appropriate UK regulator must give a consent notice to the host state regulator within three months beginning with the date on which it received the firm's notice of intention unless the F146appropriate UK regulator has reason to doubt the adequacy of the firm's resources or its administrative structure.

Where the PRA is the appropriate UK regulator, it must consult the FCA before deciding whether to give a consent notice, except where sub-paragraph (7A) applies.

Where the FCA is the appropriate UK regulator, it must consult the PRA before deciding whether to give a consent notice in relation to a UK firm whose immediate group includes a PRA-authorised person.

If the F146appropriate UK regulator proposes to refuse to give a consent notice it must give the firm concerned a warning notice.

If the firm’s EEA right derives from any of the insurance directives and the host state regulator has notified it of the applicable provisions, the F146appropriate UK regulator must inform the firm of those provisions.

Rules may specify the procedure to be followed by the F146appropriate UK regulator in exercising its functions under this paragraph.

If the F146appropriate UK regulator gives a consent notice it must give written notice that it has done so to the firm concerned.

If the firm's EEA right derives from the UCITS directive, the F146appropriate UK regulator must inform F154ESMA and the Commission if it decides to refuse to give a consent notice, giving the reasons for that refusal.

In this paragraph, “applicable provisions” means the host state rules with which the firm will be required to comply when conducting business through the proposed branch in the EEA State concerned.

“Specified” means specified in rules.

F73Subject to sub-paragraph (2A), the activities identified in a notice of intention may include activities which are not regulated activities.

If the firm is a UK investment firm, a notice of intention may not include ancillary services unless such services are to be provided in connection with the carrying on of one or more investment services and activities.

In sub-paragraph (2A) “ancillary services” has the meaning given in Article 4.1.3 of the markets in financial instruments directive.

If the firm’s EEA right derives from F18the banking consolidation directive, F75markets in financial instruments directive or the UCITS directive, the F137appropriate UK regulator must, within one month of receiving a notice of intention, send a copy of it to the host state regulator F19with such other information as may be specified.

If the firm's EEA right derives from the UCITS directive, the F137appropriate UK regulator must provide information about the compensation scheme with the information provided to the host state regulator under sub-paragraph (3).

Where the PRA is the appropriate UK regulator, it must consult the FCA before deciding whether to give a consent notice.

Where the FCA is the appropriate UK regulator, it must consult the PRA before deciding whether to give a consent notice in relation to a UK firm whose immediate group includes a PRA-authorised person.

When the F137appropriate UK regulator sends the copy under sub-paragraph (3) F3or gives a consent notice, it must give written notice to the firm concerned.

If the firm is given notice under sub-paragraph (3A)(b), it may refer the matter to the Tribunal.

If the firm’s EEA right derives from any of the insurance directives F76 or from the markets in financial instruments directiveF105 or the UCITS directive, it must not provide the services to which its notice of intention relates until it has received written notice under sub-paragraph (4).

If the firm's EEA right derives from the markets in financial instruments directive, the F137appropriate UK regulator must comply as soon as reasonably practicable with a request for information under the second sub-paragraph of Article 31.6 of that directive from the host state regulator.

Rules may specify the procedure to be followed by the F137appropriate UK regulator under this paragraph.

This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the reinsurance directive.

This paragraph does not apply to a UK firm having an EEA right which is subject to the conditions of the emission allowance auctioning regulation, in respect of its exercise of that EEA right.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Specified” means specified in rules.

The F173appropriate UK regulator must keep a record of the confirmation and other information provided to the host state regulator under paragraph 19(4) or paragraph 20(3C) in relation to a UK firm which is a management company.

The F173appropriate UK regulator must inform the host state regulator whenever there is a change in the confirmation or other information referred to in sub-paragraph (1).

If a UK investment firm is seeking to use a tied agent established in an EEA State (other than the United Kingdom) in connection with the exercise of an EEA right deriving from the markets in financial instruments directive, this Part of this Schedule applies as if the firm were seeking to establish a branch in that State.

The operator of a UCITS established in the United Kingdom may not exercise an EEA right to market the units of that UCITS in the territory of another EEA State unless the operator has given the F138appropriate UK regulator, in the specified way, notice of its intention to market the units (“notice of intention”) which contains, and is accompanied by, such information as may be specified in rules, or in regulations made by the European Commission under the UCITS directive.

The F138appropriate UK regulator must ensure that the information referred to in sub-paragraph (1) may be transmitted to it electronically.

The F138appropriate UK regulator must ensure that the host state regulator has electronic access to the information and documents referred to in sub-paragraph (3).

The F138appropriate UK regulator must notify the operator immediately that the information referred to in sub-paragraph (3) has been sent to the competent authorities of the host state regulator.

The operator may market the units of the UCITS in the territory of the host state regulator from the moment it receives the notification referred to in sub-paragraph (5).

In this paragraph—

• “operator” has the same meaning as in section 237 of this Act;

• “specified” means specified in rules.

In proceedings for an offence under sub-paragraph (1), it is a defence for the firm to show that it took all reasonable precautions and exercised all due diligence to avoid committing the offence.

Regulations may make such provision as the Treasury consider appropriate in relation to a UK firm’s exercise of EEA rights, and may in particular provide for the application (with or without modification) of any provision of, or made under, this Act in relation to an activity of a UK firm.

This paragraph does not affect any duty of the FCA to consult the PRA before exercising its power under section 55L or 55M.

“Associate”, “Consumer Credit Act business” and “controller” have the same meaning as in section 203.