PROF 7.2 Passporting under the Insurance Mediation Directive

All persons that are on the register maintained by the FCA in accordance with article 3 of the Insurance Mediation Directive1, and so permitted to conduct insurance mediation activity, are entitled to exercise the EEA right conferred upon them by article 6 of the Insurance Mediation Directive1 to establish a branch or provide services relating to insurance mediation activity in another EEA State. Both authorised professional firms and exempt professional firms that are so registered by the FCA get the benefit of these passporting rights.

Any authorised professional firm or exempt professional firm that is contemplating the exercise of rights under article 6 of the Insurance Mediation Directive1 to establish a branch or provide services relating to insurance mediation activity in another EEA State is referred to SUP 13 (Exercise of passport rights by UK firms) for further details as to the applicable process. Note that both authorised professional firms and exempt professional firms are UK firms for the purposes of the Handbook, including SUP 13.

A UK firm proposing to establish a branch in another EEA State for the first time under an EEA right derived from the Insurance Mediation Directive1 must first satisfy the conditions in paragraphs 19(2),(4) and (5) of Part III of Schedule 3 to the Act (EEA Passport Rights). These include the requirement that the firm must at the outset give the FCA a notice in the required form of its intention to establish the branch. SUP 13.3.2 G to SUP 13.3.2C G and SUP 13.3.5 G5 detail the procedure to be followed once such a notice of intention2 has been received by the FCA. SUP 13.5.1 R (Specified contents: notice of intention to establish a branch) and SUP 13.6.9A G (Firms passporting under the Insurance Mediation Directive1) will also be relevant.

A UK firm proposing to provide cross border services into another EEA State for the first time under an EEA right derived from the Insurance Mediation Directive1 must first satisfy the conditions in paragraph 20(1) of Part III of Schedule 3 to the Act (EEA Passport Rights). The UK firm must at the outset give the FCA a notice in the required form of its intention to provide the cross border services into another EEA State. In this instance, the relevant procedure to be followed is outlined in SUP 13.4.2 G, SUP 13.4.4 G and SUP 13.4.5 G. SUP 13.5.2 R (Specified contents: notice of intention to provide cross border services) and SUP 13.7.11 G will also be relevant.