29.—(1) No notice shall be served under section 183 of the Financial Services Act (reciprocal facilities for financial business) on a UK investment firm which—
(a)appears to the Secretary of State or the Treasury to be a subsidiary undertaking of a person connected with a country outside the United Kingdom; and
(b)is carrying on, or appears to the Secretary of State or the Treasury to intend to carry on, any investment, insurance or banking business in, or in relation to, the United Kingdom,
if the sole ground for giving that notice is the ground specified in paragraph (2) below.
(2) The ground referred to in paragraph (1) above is that it appears to the Secretary of State or the Treasury that by reason of—
(a)the law of the country concerned; or
(b)any action taken by, or the practices of, the government or any other authority or body in that country,
investment firms connected with the United Kingdom are unable to provide core investment services in, or in relation to, that country on terms as favourable as those on which investment firms connected with that country are able to provide such services in, or in relation to, the United Kingdom.