C3Part XIII Incoming Firms: Intervention by Authority
Exercise of power of intervention
C1I1199 Additional procedure for EEA firms in certain cases.
1
This section applies if it appears to the Authority that its power of intervention is exercisable in relation to an EEA firm exercising EEA rights in the United Kingdom (“an incoming EEA firm”) in respect of the contravention of a relevant requirement.
2
A requirement is relevant if—
a
it is imposed by the Authority under this Act; and
F1b
as respects its contravention, the single market directive in question provides that a procedure of the kind set out in the following provisions of this section (so far as they are relevant in the firm's case) is to apply.
3
The Authority must, in writing, require the firm to remedy the situation.
F23A
If the firm falls within paragraph 5(da) of Schedule 3, the Authority must at the same time as it gives notice to the firm under subsection (3) refer its findings to the firm's home state regulator.
3B
Subsections (4) to (8) apply to an incoming EEA firm other than a firm falling within paragraph 5(da) of Schedule 3.
4
If the firm fails to comply with the requirement under subsection (3) within a reasonable time, the Authority must give a notice to that effect to the firm’s home state regulator requesting it—
a
to take all appropriate measures for the purpose of ensuring that the firm remedies the situation which has given rise to the notice; and
b
to inform the Authority of the measures it proposes to take or has taken or the reasons for not taking such measures.
5
Except as mentioned in subsection (6), the Authority may not exercise its power of intervention F3before informing the firm's home state regulator and unless satisfied—
a
that the firm’s home state regulator has failed or refused to take measures for the purpose mentioned in subsection (4)(a); or
b
that the measures taken by the home state regulator have proved inadequate for that purpose.
6
If the Authority decides that it should exercise its power of intervention in respect of the incoming EEA firm as a matter of urgency in order to protect the interests of consumers, it may exercise that power—
a
before complying with subsections (3) and (4); or
b
where it has complied with those subsections, before it is satisfied as mentioned in subsection (5).
C27
In such a case the Authority must at the earliest opportunity inform the firm’s home state regulator and the Commission.
8
If—
a
the Authority has (by virtue of subsection (6)) exercised its power of intervention before complying with subsections (3) and (4) or before it is satisfied as mentioned in subsection (5), and
b
the Commission decides under any of the single market directives F4(other than the markets in financial instruments directive) that the Authority must rescind or vary any requirement imposed in the exercise of its power of intervention,
the Authority must in accordance with the decision rescind or vary the requirement.
F59
In the case of a firm falling within paragraph 5(da) of Schedule 3, the Authority may not exercise its power of intervention before informing the firm's home state regulator and unless satisfied—
a
that the firm's home state regulator has failed or refused to take all appropriate measures for the purpose of ensuring that the firm remedies the situation which gave rise to the notice under subsection (3); or
b
that the measures taken by the home state regulator have proved inadequate for that purpose.
Pt. 13 modified (1.12.2001) by S.I. 2001/3592, arts. 1(2), 114(3)(a) (with art. 23(2))
Pt. 13 extended (1.12.2001) by S.I. 2001/2636, arts. 1(2)(b), 32; S.I. 2001/3538, art. 2(1)
Pt. 13 extended (5.10.2001 for specified purposes otherwise 1.12.2001) by S.I. 2001/3084, art. 2(7); S.I. 2001/3538, art. 2(1)
Pt 13 excluded (1.12.2001) by S.I. 2001/3592, art. 107(2) (with art. 23(2))