SUP 14.1 Application and purpose

1This chapter applies to an incoming EEA firm15 which has established a branch in, or is providing cross border services into, the United Kingdom under one of the Single Market Directives or the auction regulation 8 and, therefore, qualifies for authorisation under Schedule 3 to the Act. The chapter does not apply to an EEA firm that is a Solvency II firm or to Gibraltar firms treated as such Solvency II firms. Solvency II firms and such Gibraltar firms should consult the relevant parts of the PRA Rulebook and the PRA website at: http://www.bankofengland.co.uk/pra/Pages/authorisations/passporting/notifying.aspx as the PRA is the appropriate UK regulator.15

8The guidance in SUP 14.2 and SUP 14.3 covers the EEA Passport Rights Regulations. It is not, however, relevant to an EEA firm exercising an EEA right under the auction regulation, except for SUP 14.2.14 R which applies a separate notification requirement. Additionally, where an EEA firm is carrying on MiFID business bidding, that firm is exercising an EEA right under MiFID and so this chapter applies to that activity because it is MiFID business.

SUP 14.6 (Cancelling qualification for authorisation), which sets out how to cancel qualification for authorisation under the Act, also applies to:

1. (1)

   an incoming Treaty firm that qualifies for authorisation under Schedule 4 to the Act; and

2. (2)

   a UCITS qualifier that is an authorised person under Schedule 5 to the Act; a UCITS qualifier should, however, refer to COLLG 3.1.11 G 6 for full details of applicable rules and guidance.2

   6

1. (1)

   Under the Gibraltar Order4 made under section 409 of the Act, a Gibraltar firm is treated as an EEA firm under Schedule 3 to the Act if it is:

   1. (a)

      [deleted]15

      1313
   2. (aa)

      [deleted]13

      13
   3. (b)

      authorised in Gibraltar under the9 CRD; or;4

      94
   4. (c)

      authorised in Gibraltar under the IDD16; or4

   5. (d)

      authorised in Gibraltar under MiFID; or10

      10
   6. (e)

      authorised in Gibraltar under the UCITS Directive; or1210

   7. (f)

      authorised in Gibraltar under AIFMD.12

   8. (g)

      authorised in Gibraltar under the MCD14

2. (1A)

   4Similarly, an EEA firm which:

   1. (a)

      has satisfied the Gibraltar establishment conditions and has established a branch in the UK; or

   2. (b)

      has satisfied the Gibraltar service conditions and is providing cross border services into the UK;

   is treated as having satisfied the establishment conditions or service conditions (as appropriate) under Schedule 3 to the Act.

3. (2)

   Credit institutions15, insurance intermediaries11, investment firms4,12 management companies11,14 AIFMs12 and MCD credit intermediaries14 are4 allowed to passport their4 services into the United Kingdom if they comply 4with the relevant notification procedures. So, any references in SUP 14 to EEA State or EEA right include references to Gibraltar and the entitlement under the Gibraltar Order where appropriate.4

   44114124444

This chapter gives guidance on the Act and the EEA Passport Rights Regulations made under the Act, for an incoming EEA firm which has established a branch in, or is providing cross border services into, the United Kingdom and wishes to change the details of the branch or cross border services.

[Note: An EEA bank is required to comply with the requirements set out in the directly applicable regulations adopted under Articles 35, 36 and 39 CRD.] 9

This chapter also explains how an incoming EEA firm, an incoming Treaty firm or a UCITS qualifier may cancel its qualification for authorisation under the Act.

This chapter does not, however, give guidance on the procedures for the establishment of a branch in, or the providing of cross border services into, the United Kingdom for the first time. So, an incoming EEA firm that wishes to change or supplement the nature of its operations in the United Kingdom from the providing of cross border services to the establishment of a branch (or vice versa) should refer to 3SUP 13A3 (Qualifying for authorisation under the Act).

In addition, the chapter does not give guidance on the procedures for making an application for top-up permission, to carry on regulated activities in the United Kingdom which are outside the scope of the Single Market Directives and for which the firm cannot exercise Treaty rights. Incoming EEA firms seeking a top-up permission should refer to 3SUP 13A3.

17The FCA and PRA will share with each other relevant information received, as necessary, in order to perform their respective functions.