The Investment Services Regulations 1995

Requirements for providing listed services etc.

1.—(1) In relation to the provision by the provision of services of any listed service, the requirements of this paragraph are that the firm has given to the Board, or, in the case of a listed person, to the Bank, a notice in accordance with paragraph 2 below.

(2) In relation to the establishment of a branch, the requirements of this paragraph are—

(a) that the firm has given to the Board, or, in the case of a listed firm, to the Bank, a notice in accordance with paragraph 2 below;

(b) that the Board or, as the case may be, the Bank has given to the relevant supervisory authority in the EEA State concerned the notice which, subject to paragraph 4(2) below, it is required by paragraph 3 below to give; and

(c) that either—

(i) the relevant supervisory authority has informed the firm that it may establish the branch; or

(ii) the period of two months beginning with the day on which the Board or, as the case may be, the Bank gave the relevant supervisory authority the notice mentioned in paragraph (b) above has elapsed.

2.  A notice given by a firm to the Board or, as the case may be, to the Bank is given in accordance with this paragraph if it states—

(a) the EEA State in which the firm proposes to carry on listed services;

(b) whether the firm intends to establish a branch in that EEA State; and

(c) in either case, the requisite details.

3.  The notice which, subject to paragraph 4(2) below, the Board or, as the case may be, the Bank, is required to give in respect of a UK authorised investment firm is a notice which is addressed to the relevant supervisory authority in the EEA State identified in the firm’s notice under paragraph 2 above and which—

(a) certifies that the firm is an authorised person, or, as the case may be, an exempted person, under the Financial Services Act;

(b) contains the information stated in the firm’s notice; and

(c) if the firm intends to establish a branch in the EEA State, contains details of any compensation scheme which is intended to protect the branch’s investors.

4.—(1) Where the firm’s notice under paragraph 2 above states that the firm does not intend to establish a branch in the EEA State, the notice referred to in paragraph 3 above shall be given within the period of one month beginning with the date on which the firm’s notice was received by the Board or, as the case may be, the Bank.

(2) Where the firm’s notice under paragraph 2 above states that the firm intends to establish a branch in the EEA State, the Board or, as the case may be, the Bank shall, within the period of three months beginning with the date on which the firm’s notice was received—

(a) give the notice referred to in paragraph 3 above; or

(b) refuse to give such a notice.

(3) The Board or, as the case may be, the Bank may not refuse to give such a notice unless, having regard to the listed services proposed to be provided, the Board or, as the case may be, the Bank doubts the adequacy of the administrative structure or the financial situation of the firm.

(4) Before determining to give or to refuse to give such a notice, the Board or, as the case may be, the Bank—

(a) shall seek and take into account the views of every other authority which it knows is a connected UK authority in relation to any of the listed services proposed to be provided; and

(b) may regard itself as satisfied in relation to any matter relating to those services which is relevant to the decision if any such authority informs the Board or, as the case may be, the Bank that it is so satisfied.

(5) In reaching a determination as to the adequacy of the administrative structure, the Board or, as the case may be, the Bank may have regard to the adequacy of management, systems and controls and the presence of relevant skills needed for the services proposed to be provided.

(6) Where the firm’s notice under paragraph 2 above states that the firm proposes to establish a branch, the Board or, as the case may be, the Bank, shall, within the period of three months referred to in sub-paragraph (2) above, notify the firm—

(a) that it has given the notice referred to in paragraph 3 above, stating the date on which it did so; or

(b) that it has refused to give the notice, stating the reasons for the refusal and giving particulars of the right to refer the case to the Financial Services Tribunal under section 97 of the Financial Services Act or, as the case may be, of any relevant arrangements made by the Bank for a review of its decision.