SUP 14
Incoming EEA firms changing details, and cancelling qualification for authorisation
SUP 14.1
Application and purpose
- 01/12/2004
Application
SUP 14.1.1
See Notes
This chapter applies to an incoming EEA firm which has established a branch in, or is providing cross border services into, the United Kingdom under one of the Single Market Directives and, therefore, qualifies for authorisation under Schedule 3 to the Act.
- 21/06/2001
SUP 14.1.2
See Notes
SUP 14.6 (Cancelling qualification for authorisation), which sets out how to cancel qualification for authorisation under the Act, also applies to:
(2) a UCITS qualifier that is an authorised person under Schedule 5 to the Act; a UCITS qualifier should, however, refer to
COLL 9.4.2 R and CIS for full details of applicable rules and guidance.
- 01/04/2004
Purpose
SUP 14.1.4
See Notes
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. These are known as requisite details, or for firms passporting under the Insurance Directives relevant details.
- 21/06/2001
SUP 14.1.5
See Notes
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.
- 21/06/2001
SUP 14.1.6
See Notes
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 SUP 13A (Qualifying for authorisation under the Act).
- 01/02/2006
SUP 14.1.7
See Notes
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 SUP 13A.
- 01/02/2006
SUP 14.2
Changes to branch details
- 01/12/2004
SUP 14.2.1
See Notes
Where an incoming EEA firm is exercising an EEA right, other than under the Insurance Mediation Directive, and has established a branch in the United Kingdom, the EEA Passport Rights Regulations govern any changes to the details of that branch. Where an incoming EEA firm has complied with the relevant requirements in the EEA Passport Rights Regulations, then the firm'spermission given under Schedule 3 to the Act is to be treated as varied accordingly. All references to regulations in SUP 14 are to the EEA Passport Rights Regulations.
- 21/06/2001
Firms passporting under the Investment Services Directive and Banking Consolidation Directive and the UCITS Directive
SUP 14.2.2
See Notes
(1) Where an incoming EEA firm passporting under the
Investment Services Directive,
Banking Consolidation Directive
or the UCITS Directive has established a branch in the United Kingdom, regulation 4 states that it must not make a change in the requisite details of the branch unless it has complied with the relevant requirements.
(2) The relevant requirements are set out in regulation 4(4) or, where the change arises from circumstances beyond the incoming EEA firm's control, in regulation 4(5) (see SUP 14.2.8 G).
- 01/02/2006
SUP 14.2.3
See Notes
Where the change arises from circumstances within the control of the incoming EEA firm, the requirements in regulation 4(4) are that:
(1) the incoming EEA firm has given notice to the
FSA
(see SUP 14.4.1 G) and to its Home State regulator stating the details of the proposed change;
(2) the
FSA
has received a notice stating those details; and
(3) either:
(a) the
FSA
has informed the firm that it may make the change; or
(b) the period of one month beginning with the date on which the incoming EEA firm gave the
FSA
the notice mentioned in (1) has elapsed.
- 21/06/2001
SUP 14.2.4
See Notes
Changes to the requisite details may lead to changes to the applicable provisions to which the incoming EEA firm is subject. The
FSA
will, as soon as practicable after receiving a notice in SUP 14.2.3 G or SUP 14.2.8 G, inform the incoming EEA firm of any consequential changes in the applicable provisions (regulation 4(6)).
- 21/06/2001
Firms passporting under the Insurance Directives
SUP 14.2.5
See Notes
(1) Where an incoming EEA firm, passporting under the Insurance Directives has established a branch in the United Kingdom, regulation 6 states that it must not make a change to the information referred to in regulation 2(5)(a) to (c) unless it has complied with the relevant requirements.
(2) The relevant requirements are set out in regulation 6(4) or, where the change arises from circumstances beyond the incoming EEA firm's control, regulation 6(5) (see SUP 14.2.8 G).
- 01/02/2006
SUP 14.2.6
See Notes
Where the change arises from circumstances within the control of the incoming EEA firm, the relevant requirements in regulation 6(4) are that:
(1) the incoming EEA firm has given a notice to the
FSA
(see SUP 14.4.1 G) and to its Home State regulator stating the details of the proposed change;
(2) the
FSA
has received from the Home State regulator a notice stating that it has approved the proposed change;
(3) the period of at least one month beginning with the day on which the incoming EEA firm gave the
FSA
the notice in (1) has elapsed; and
(4) either:
(a) a further period of one month has elapsed; or
(b) the
FSA
has informed the Home State regulator of any consequential changes in the applicable provisions.
- 21/06/2001
SUP 14.2.7
See Notes
Under regulation 6(6) the FSA is required, as soon as practicable, to:
(1) acknowledge receipt of the documents sent under regulation 6(4) or 6(5); and
(2) in the case of a notice under regulation 6(5), inform the incoming EEA firm's Home State regulator of any consequential changes in the applicable provisions.
- 21/06/2001
Changes arising from circumstances beyond the control of an incoming EEA firm
SUP 14.2.8
See Notes
If the change arises from circumstances beyond the incoming EEA firm's control, the firm is required by regulation 4(5) (see SUP 14.2.2 G) or regulation 6(5) (see SUP 14.2.5 G (2)) to give a notice to the
FSA
(see SUP 14.4.1 G) and to its Home State regulator stating the details of the change as soon as reasonably practicable.
- 21/06/2001
SUP 14.2.9
See Notes
The
FSA
believes that for a change to arise from circumstances beyond the control of an incoming EEA firm, the circumstances should be outside the control of the firm as a whole and not just its UK branch. For example, the
FSA
considers that this provision would be unlikely to apply to circumstances in which lack of planning at the incoming EEA firm's head office resulted in a problem arising in a UKbranch which was outside its control. In practice, therefore, use of this provision is likely to be rare.
- 21/06/2001
SUP 14.3
Changes to cross border services
- 01/12/2004
SUP 14.3.1
See Notes
Where an incoming EEA firm passporting under the
Investment Services Directive
, UCITS Directive or
Insurance Directives
is exercising an EEA right and is providing cross border services into the United Kingdom, the EEA Passport Rights Regulations govern any changes to the details of those services. Where an incoming EEA firm has complied with the relevant requirements in the
EEA Passport Rights Regulations, then the firm'spermission given under Schedule 3 to the Act is to be treated as varied accordingly.
- 13/02/2004
Firms passporting under the Investment Services Directive and UCITS Directive
SUP 14.3.2
See Notes
Where an incoming EEA firm passporting under the
Investment Services Directive or is providing cross border services into the United Kingdom, it must not make a change in the details referred to in regulation 5(1) unless it has complied with the relevant requirements in regulation 5(3).
- 01/02/2006
SUP 14.3.3
See Notes
The relevant requirements in regulation 5(3) are that:
(1) the incoming EEA firm has given a notice to the
FSA
(see SUP 14.4.1 G) and to its Home State regulator stating the details of the proposed change;
(2) if the change arises from circumstances beyond the incoming EEA firm's control, that firm has, as soon as practicable, given to the
FSA
and to its Home State regulator the notice in (1).
- 21/06/2001
SUP 14.3.4
See Notes
Under regulation 5(4), the
FSA
is required, as soon as practicable after receiving the notice in SUP 14.3.3 G, to inform the incoming EEA firm of any consequential changes in the applicable provisions.
- 21/06/2001
Firms passporting under the Insurance Directives
SUP 14.3.5
See Notes
If an incoming EEA firm passporting under the
Insurance Directives
is providing cross border servicesinto the United Kingdom, it must not make a change to the details referred to in regulation 7(1) unless it has complied with the relevant provisions.
- 01/02/2006
SUP 14.3.6
See Notes
The relevant provisions are those set out in regulation 7(4), namely that:
(1) the incoming EEA firm has given a notice to its Home State regulator stating the details of the proposed change; and
- 21/06/2001
SUP 14.3.7
See Notes
If the change arises from circumstances beyond the incoming EEA firm's control, the incoming EEA firm is required to comply with the relevant provisions referred to in SUP 14.3.6 G as soon as reasonably practicable (whether before or after the change). See also SUP 14.2.9 G, as relevant to cross border services.
- 21/06/2001
SUP 14.4
Notices of proposed changes: form and delivery
- 01/12/2004
SUP 14.4.1
See Notes
(1) Regulation 7 to 9 of the Financial Services and Markets Act 2000 (Services of Notices) Regulations 2001 (SI2001/1420) govern the manner in which notices may be submitted to the FSA under the EEA Passport Rights Regulations. In summary, they should be delivered or posted to the FSA's address (See (2) below) and will be treated as given when received by the FSA. They should not be sent by fax or electronic mail.
(2) The address for notices is: The Passport Notifications Unit, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS
- 21/06/2001
SUP 14.5
Variation of a top-up permission to carry on regulated activities outside the scope of the Single Market Directives
- 01/12/2004
SUP 14.5.1
See Notes
Where an incoming EEA firm has been granted top-up permission by the
FSA
and wishes to vary that permission, the Act requires it to apply to the
FSA
for a variation of the top-up permission.
- 21/06/2001
SUP 14.5.2
See Notes
Guidance on the procedures for applying for a variation of a permission granted under Part IV of the Act, including a top-up permission, is given in SUP 6 (Applications to vary and cancel Part IVPermission).
- 21/06/2001
SUP 14.6
Cancelling qualification for authorisation
- 01/12/2004
Incoming EEA firms
SUP 14.6.1
See Notes
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:
(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.
- 21/06/2001
SUP 14.6.2
See Notes
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.
- 21/06/2001
SUP 14.6.3
See Notes
Regulation 8 states that where an incoming EEA firm which qualifies for authorisation under Schedule 3:
(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.- 21/06/2001
SUP 14.6.4
See Notes
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.
- 21/06/2001
SUP 14.6.5
See Notes
The
FSA
may not, however, give a direction referred to in SUP 14.6.4 G unless:
- 21/06/2001
SUP 14.6.6
See Notes
Regulation 9(3) requires that the date specified by the
FSA
in a direction referred to in SUP 14.6.4 G:
(1) must not be earlier than the date requested in the application; but
- 21/06/2001
SUP 14.6.7
See Notes
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)).
- 21/06/2001
SUP 14.6.8
See Notes
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
AUTH 3 (Applications for Part IV Permission)) to take effect not earlier than the date that its qualification for authorisation is cancelled (as specified in the direction).
- 21/06/2001
Incoming Treaty firms
SUP 14.6.9
See Notes
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.
- 21/06/2001
SUP 14.6.10
See Notes
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.
- 21/06/2001
UCITS qualifiers
SUP 14.6.11
See Notes
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).
- 01/04/2004
SUP 14.7
Cancellation of a top-up permission to carry on regulated activities outside the scope of the Single Market Directives
- 01/12/2004
SUP 14.7.1
See Notes
Where an incoming EEA firm, an incoming Treaty firm or a UCITS qualifier wishes to cancel its top-up permission, either with or without cancellation of its qualification for authorisation under Schedule 3, 4, or 5 to the Act, it should make an application following the procedures set out in SUP 6 (Applications to vary and cancel Part IVPermission).
- 21/06/2001
SUP 14.8
Further guidance
- 01/12/2004
SUP 14.8.1
See Notes
For further guidance on passporting procedures, an incoming EEA firmshould contact the
FSA's Passport Notifications Unit or their usual supervisory contact at the
FSA
. Incoming Treaty firms and UCITS qualifiersshould speak to their usual supervisory contact at the
FSA
in the first instance
- 21/06/2001