Section 31 of the Act (Authorised persons) states that an EEA firm is authorised for the purposes of the Act if it qualifies for authorisation under Schedule 3 to the Act (EEA Passport Rights). Under paragraph 12 of Part II of that Schedule, an EEA firm that is an EEA pure reinsurer, or an EEA firm that has received authorisation under article 18 of the auction regulation,7 5qualifies for authorisation without condition. Other than those two types of EEA firm, an7 EEA firm qualifies for authorisation5 if:77
6Under paragraph 15A(1) of Part II of Schedule 3 to the Act, an EEA UCITS management company intending to exercise an EEA right to provide collective portfolio management services for a UCITS scheme must, before it undertakes that activity, obtain the FCA's9 approval to manage that UCITS scheme. Firms should use the application form set out in SUP 13A Annex 3 R (EEA UCITS management companies: application for approval to manage a UCITS scheme established in the United Kingdom) for this purpose.9
If the FCA9 refuses the application referred to in (1), it will give a notice to the firm and the firm's Home State regulator in accordance with paragraph 15A of Part II of Schedule 3 to the Act. Before refusing an application, the FCA9 will consult with the firm's Home State regulator.99
Under paragraph 15B(1) of Part II of Schedule 3 to the Act, if any representations are made to the FCA9 by a firm to which the notice referred to in (2) has been given, the FCA9 is required to decide whether to withdraw that notice. If the FCA9 decides not to withdraw that notice it must give the firm a decision notice.999
On qualifying for authorisation, subject to SUP 13A.3.1C G (1),6 an EEA firm (except for an EEA firm that has received authorisation under article 18 of the auction regulation)7 will have permission to carry on each permitted activity (see (3) below) which is a regulated activity.6
The permitted activities of an EEA firm (except for an EEA firm that has received authorisation under article 18 of the auction regulation)7 are those activities identified in the consent notice, regulator's notice or notice of intention. Those permitted activities7 may include activities that are within the scope of a Single Market Directive but which are unregulated activities in the United Kingdom.7
The permission will be treated as being on terms equivalent to those appearing in the consent notice, regulator's notice,7 notice of intention or (in respect of an EEA firm that has received authorisation under article 18 of the auction regulation) to those appearing in the authorisation granted to the EEA firm under article 18 of the auction regulation7. For example, it will reflect any limitations or requirements which are included in the firm's Home State authorisation.
On qualifying for authorisation a Treaty firm will have permission to carry on each permitted activity which is a regulated activity. This permission will be treated on the same terms as those which apply to the Treaty firm's Home State authorisation. For example, it will reflect any limitations or requirements which are included in the firm's Home State authorisation.
The effect of paragraph 5(1) and 5(2) of Schedule 4 to the Act is that a Treaty firm which qualifies for authorisation under that Schedule must, at least seven days before it carries on any of the regulated activities covered by its permission, give the appropriate UK regulator9 written notice of its intention to do so. Failure to do so is a criminal offence under paragraph 6(1) of that Schedule.9
The written notice may be delivered by:
- (a) 9
leaving the application at the address in SUP 13A.3.9 G below and obtaining a time-stamped receipt; or
- (c) 9
Under Schedule 5 to the Act (Persons concerned in collective investment schemes), a person who for the time being is an operator, trustee or depositary of a scheme which is a recognised scheme under section 264 of the Act is an authorised person. Such a person is referred to in the Handbook as a UCITS qualifier.