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SUP 14.6 Cancelling qualification for authorisation

Incoming EEA firms

SUP 14.6.1 G

Section 34 of the Act states that an incoming EEA firm no longer qualifies for authorisation under Schedule 3 to the Act if it ceases to be an incoming EEA firm as a result of:

  1. (1)

    having its EEA authorisation withdrawn by its Home State regulator; or

  2. (2)

    ceasing to have an EEA right in circumstances in which EEA authorisation is not required; this is relevant to a financial institution that is a subsidiary of a credit institution (of the kind mentioned in Article 345of the CRD5) which fulfils the conditions in articles 33 and 345of that Directive.

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SUP 14.6.2 G

In addition, under section 34(2) an incoming EEA firm may ask the appropriate UK regulator7 to give a direction cancelling its authorisation under Schedule 3 to the Act.

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SUP 14.6.3 G

Regulation 8 states that where an incoming EEA firm which qualifies for authorisation under Schedule 3:

  1. (1)

    has ceased, or is to cease, to carry on regulated activities in the United Kingdom; and

  2. (2)

    gives notice of that fact to the appropriate UK regulator7;

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the notice is treated under regulation 8 as a request for cancellation of the incoming EEA firm's qualification for authorisation under Schedule 3 to the Act and so as a request under section 34(2) of the Act.

Auction regulation bidding: notification rule

SUP 14.6.3A R

4An EEA firm that has exercised an EEA right under the auction regulation to establish a branch in the United Kingdom must notify the FCA7 by email to 7emissionstrading@fca.org.uk7 when it ceases to carry on regulated activities through a branch passport in the United Kingdom or whenever possible thereafter.

SUP 14.6.3B G

4 The sole purpose of the notification in SUP 14.6.3A R is to inform the FCA7 that it may discontinue its supervision of the UK branch of the incoming EEA firm's compliance with the applicable provisions. The applicable provisions that apply to that branch are set out in SUP 13A Annex 1 (Application of the Handbook to Incoming EEA Firms).

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Incoming Treaty firms

SUP 14.6.9 G

Section 35 of the Act states that an incoming Treaty firm no longer qualifies for authorisation under Schedule 4 to the Act if its Home State authorisation is withdrawn.

SUP 14.6.10 G

In addition, under section 35(2) an incoming Treaty firm may ask the appropriate UK regulator7 to give a direction cancelling its authorisation under Schedule 4 to the Act.

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UCITS qualifiers

SUP 14.6.11 G

Section 36 of the Act states that a UCITS qualifier may ask the FCA7 to give a direction cancelling its authorisation under paragraph 1(1) of Schedule 5 to the Act. UCITS qualifiers should also refer to COLLG 3.1.11 G (Revocation of recognition of overseas schemes (section 279)3).1

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