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SUP 14.6 Cancelling qualification for authorisation

Incoming EEA firms

SUP 14.6.1 G RP

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    having its EEA authorisation withdrawn by its Home State regulator; or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 19of the Banking Consolidation Directive) which fulfils the conditions in articles 18 and 19of that Directive.

SUP 14.6.2 G RP

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

SUP 14.6.3 G RP

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 FSA;

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.

SUP 14.6.4 G

Where a financial institution (that is, a subsidiary of a credit institution) is passporting under the Banking Consolidation Directive (see SUP 14.6.1 G (2)), regulation 9(1) states that the incoming EEA firm may request the FSA to direct that its qualification for authorisation under Schedule 3 to the Act is cancelled from such date as may be specified in the direction.

SUP 14.6.5 G

The FSA may not, however, give a direction referred to in SUP 14.6.4 G unless:

  1. (1)

    the incoming EEA firm has given notice to its Home State regulator; and

  2. (2)

    the FSA has agreed with the Home State regulator that the direction should be given.

SUP 14.6.6 G

Regulation 9(3) requires that the date specified by the FSA in a direction referred to in SUP 14.6.4 G:

  1. (1)

    must not be earlier than the date requested in the application; but

  2. (2)

    subject to (1), is as agreed between the FSA and the incoming EEA firm's Home State regulator.

SUP 14.6.7 G

The FSA is required to send, as soon as practicable, a copy of the direction to the incoming EEA firm and to its Home State regulator (regulation 9(4)).

SUP 14.6.8 G

Where the FSA gives a direction referred to in SUP 14.6.4 G, the incoming EEA firm may apply for Part IV permission (see the FSA website "How do I get authorised":http://www.fsa.gov.uk/Pages/Doing/how/index.shtml2) to take effect not earlier than the date that its qualification for authorisation is cancelled (as specified in the direction).

2

Incoming Treaty firms

SUP 14.6.9 G RP

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 RP

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

UCITS qualifiers

SUP 14.6.11 G RP

Section 36 of the Act states that a UCITS qualifier may ask the FSA 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 Gand CIS 17.4.8 G (Revocation of recognition: Schemes recognised under section 264 of the Act).1