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SUP 13A.3 Qualifications for authorisation under the Act

EEA firms

SUP 13A.3.1G

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:

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  1. (1)

    it is seeking to establish a branch in the United Kingdom in exercise of an EEA right and satisfies the establishment conditions (see SUP 13A.4.1 G and SUP 13A.4.2 G); or

  2. (2)

    it is seeking to provide cross border services into the United Kingdom in exercise of an EEA right and satisfies the service conditions (see SUP 13A.5.3 G).

SUP 13A.3.1AG

3If an EEA MiFID investment firm seeks to use a tied agent established in the UK, the EEA MiFID investment firm will be treated as if it were seeking to establish a branch and must satisfy the establishment conditions (see SUP 13A.4.1 G).

SUP 13A.3.1CG
  1. (1)

    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.

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  2. (1A)

    If the firm's immediate group includes a PRA-authorised person, the FCA will give the PRA a copy of the application referred to in (1).9

  3. (2)

    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.

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  4. (3)

    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.

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  5. (4)

    [deleted]9

    9
SUP 13A.3.1DG

For details of the FCA's procedures for the giving of notices see DEPP 2 (Statutory notices and allocation of decision making).9

SUP 13A.3.2G
  1. (1)

    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
  2. (2)

    6[deleted]

  3. (3)

    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.

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  4. (3A)

    7An EEA firm that received authorisation under article 18 of the auction regulation has permission to carry on bidding in emissions auctions.

  5. (4)

    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.

SUP 13A.3.3G

An EEA firm which has qualified for authorisation is referred to in the Handbook as an incoming EEA firm.

Treaty firms

SUP 13A.3.4G

Under section 31 of the Act, a Treaty firm is authorised for the purposes of the Act if it qualifies for authorisation under Schedule 4 (Treaty Rights), that is:

  1. (1)

    the Treaty firm is seeking to carry on a regulated activity; and

  2. (2)

    the conditions set out in paragraph 3(1) of Schedule 4 to the Act are satisfied.

SUP 13A.3.5G

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.

SUP 13A.3.6G

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.

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SUP 13A.3.6AG

9Where the PRA receives a notification, it will give a copy to the FCA, and where the FCA receives a notification, it will give a copy to the PRA where relevant.

SUP 13A.3.7D
  1. (1)

    A written notice from a Treaty firm under paragraph 5(2) of Schedule 4 to the Act must be:

    1. (a)

      addressed for the attention of the authorisations team in the PRA or FCA, as appropriate; and9

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    2. (b)

      delivered to the appropriate UK regulator9 by one of the methods in (2).

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  2. (2)

    The written notice may be delivered by:

    1. (a)

      post to either of the following addresses, as appropriate:9

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      1. (i)

        the address for notices to the FCA: The Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS; or9

      2. (ii)

        the address for notices to the PRA: The Prudential Regulation Authority, 20 Moorgate, London, EC2R 6DA; or9

    2. (b)

      leaving the application at the address in SUP 13A.3.9 G below and obtaining a time-stamped receipt; or

    3. (c)

      hand delivery to a member of the authorisations team in the PRA or FCA, as appropriate.9

      9
SUP 13A.3.8G

The written notice required by paragraph 5(2) of Schedule 4 to the Act should be accompanied by confirmation of the Treaty firm's authorisation from the Home State regulator, as referred to in paragraph 3(2) of Schedule 4 to the Act.

SUP 13A.3.9G
  1. (1)

    For further information, a Treaty firm should contact the FCA and/or PRA authorisations teams using the details provided on that regulator's website.9

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SUP 13A.3.10G
  1. (1)

    The guidance in PERG 2 is relevant to Treaty firms to help them determine if they require authorisation under the Act.

  2. (2)

    A Treaty firm which qualifies for authorisation is referred to in the Handbook as an incoming Treaty firm.

UCITS qualifiers

SUP 13A.3.12G

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.

SUP 13A.3.13G

A UCITS qualifier has permission under paragraph 2 of Schedule 5 to the Act, to carry on, as far as is appropriate to the capacity in which it acts in relation to the scheme:8

8
  1. (1)

    the regulated activity of establishing, operating or winding up a collective investment scheme; and

  2. (2)

    any activity in connection with, or for the purposes of, the scheme (including the regulated activity of managing a UCITS).8

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SUP 13A.3.14G

A UCITS qualifier should refer to COLLG or to the following sections of COLL for requirements for recognised schemes4:

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  1. (1)

    COLL 9.2.1 G for guidance on notifications;

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  2. (2)

    COLL 9.2.1 G for guidance on information and documentation requirements; and

    4
  3. (3)

    COLL 9.4 which includes rules 4on what facilities need to be maintained.

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