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 firmother than an EEA pure reinsurer 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 and, therefore, qualifies for authorisation under Schedule 3 to the Act.
- 01/04/2013
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 COLLG 3.1.11 G for full details of applicable rules and guidance.
- 01/04/2013
SUP 14.1.3
See Notes
- (1) Under the Gibraltar Order 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:
- (a) authorised in Gibraltar under the Insurance Directives; or
- (aa) authorised in Gibraltar under the Reinsurance Directive; or
- (b) authorised in Gibraltar under the CRD; or;
- (c) authorised in Gibraltar under the Insurance Mediation Directive; or
- (d) authorised in Gibraltar under MiFID; or
- (e) authorised in Gibraltar under the UCITS Directive.
- (1A) Similarly, an EEA firm which:
- (a) has satisfied the Gibraltar establishment conditions and has established a branch in the UK; or
- (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.
- (2) Gibraltar insurance companies, credit institutions, insurance intermediaries , investment firms and management companies are allowed to passport their services into the United Kingdom if they comply with 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.
- 28/02/2014
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.
[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.]
[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.]
- 01/01/2014
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.
- 01/04/2013
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).
- 01/04/2013
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.
- 01/04/2013
SUP 14.1.8
See Notes
- 01/04/2013
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's permission 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.
- 01/04/2013
Firms passporting under the CRD and the UCITS Directive
SUP 14.2.2
See Notes
(1) Where an incoming EEA firm passporting under the CRD 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).
- 01/01/2014
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 appropriate UK regulator (see SUP 14.4.1 G) and to its Home State regulator stating the details of the proposed change;
(2) the appropriate UK regulator has received a notice stating those details; and
(3) either:
(a) the appropriate UK regulator 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 appropriate UK regulator the notice mentioned in (1) has elapsed.
- 01/04/2013
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 appropriate UK regulator 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)).
- 01/04/2013
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).
- 01/04/2013
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 PRA (see SUP 14.4.1 G) and to its Home State regulator stating the details of the proposed change;
(2) the PRA 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 PRA the notice in (1) has elapsed; and
(4) either:
(a) a further period of one month has elapsed; or
(b) the PRA has informed the Home State regulator of any consequential changes in the applicable provisions.
- 01/04/2013
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.
- 01/04/2013
Changes arising from circumstances beyond the control of an incoming EEA firm passporting under the CRD, UCITS Directive or Insurance Directive
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 appropriate UK regulator (see SUP 14.4.1 G) and to its Home State regulator stating the details of the change as soon as reasonably practicable.
- 01/04/2013
SUP 14.2.9
See Notes
The appropriate UK regulator 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 appropriate UK regulator 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 UK branch which was outside its control. In practice, therefore, use of this provision is likely to be rare.
- 01/04/2013
Firms passporting under MiFID
SUP 14.2.10
See Notes
Where an EEA MiFID investment firm has established a branch in the UK, regulation 4A states that it must not:
unless it has complied with the relevant requirements in regulation 4A(3).
(1) make a change in the requisite details of the branch; or
(2) use, for the first time, any tied agent established in the United Kingdom; or
(3) cease to use tied agents established in the United Kingdom;
unless it has complied with the relevant requirements in regulation 4A(3).
- 01/04/2013
SUP 14.2.11
See Notes
The relevant requirements in regulation 4A(3) are that:
(1) the EEA MiFID investment firm has given notice to its Home State regulator stating the details of the proposed change; and
(2) the period of one month beginning with the date on which the EEA MiFID investment firm gave the notice mentioned in (1) has elapsed.
- 01/04/2013
SUP 14.2.12
See Notes
Changes to the requisite details may lead to changes to the applicable provisions to which the EEA MiFID investment firm is subject. The appropriate UK regulator will, as soon as practicable after receiving a notice in SUP 14.2.11 G inform the EEA MiFID investment firm of any consequential changes in the applicable provisions.
- 01/04/2013
SUP 14.2.13
See Notes
SUP 14.2.10 G does not apply to a change occasioned by circumstances beyond the incoming EEA firm's control.
- 01/04/2013
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 MiFID , UCITS Directive, Insurance Directives or AIFMD 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 EEA Passport Rights Regulations, then the firm's permission under Schedule 3 to the Act is to be treated as varied.
- 23/07/2013
SUP 14.3.4
See Notes
Under regulation 5(4), the FCA 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.
- 01/04/2013
Firms passporting under MiFID
SUP 14.3.4A
See Notes
Where an incoming EEA firm passporting under MiFID is providing cross border services into the United Kingdom, it must not:
unless it has complied with the relevant requirements in regulation 5A(3).
(1) make a change in the details referred to in regulation 5A(1)(a); or
(2) use, for the first time, any tied agent to provide services in the United Kingdom; or
(3) cease to use tied agents to provide services in the United Kingdom;
unless it has complied with the relevant requirements in regulation 5A(3).
- 01/04/2013
SUP 14.3.4B
See Notes
The relevant requirements in regulation 5A(3) are that:
(1) the incoming EEA firm has given notice to its Home State regulator stating the details of the proposed change; and
(2) the period of one month beginning with the day on which the incoming EEA firm gave that notice has elapsed.
- 01/04/2013
SUP 14.3.4D
See Notes
SUP 14.3.4A G does not apply to a change occasioned by circumstances beyond the incoming EEA firm's control.
- 01/04/2013
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.
- 01/04/2013
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
(2) the Home State regulator has passed on to the PRA the information contained in that notice.
- 01/04/2013
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.
- 01/04/2013
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 regulators under the EEA Passport Rights Regulations. In summary, they should be delivered or posted to the appropriate UK regulator's address (See (2) below) and will be treated as given when received by the appropriate UK regulator . They should not be sent by fax or electronic mail.
(2) [deleted]
- 01/04/2013
SUP 14.4.1B
See Notes
The address for PRA notices is: PRA authorisations team, The Prudential Regulation Authority, 20 Moorgate, London, EC2R 6DA.
- 01/04/2013
SUP 14.5
Variation of a top-up permission to carry on regulated activities outside the scope of the Single Market Directives or the auction regulation
- 27/07/2012
SUP 14.5.1
See Notes
Where an incoming EEA firm has been granted top-up permission by the appropriate UK regulator and wishes to vary that permission, the Act requires it to apply to the appropriate UK regulator for a variation of the top-up permission.
- 01/04/2013
SUP 14.5.2
See Notes
Guidance on the procedures for applying for a variation of a permission granted under Part 4A of the Act, including a top-up permission, is given in SUP 6 (Applications to vary and cancel Part 4APermission).
- 01/04/2013
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:
(1) having its EEA authorisation withdrawn by its Home State regulator; or
(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 34of the CRD ) which fulfils the conditions in articles 33 and 34of that Directive.
- 01/01/2014
SUP 14.6.2
See Notes
In addition, under section 34(2) an incoming EEA firm may ask the appropriate UK regulator to give a direction cancelling its authorisation under Schedule 3 to the Act.
- 01/04/2013
SUP 14.6.3
See Notes
Regulation 8 states that where an incoming EEA firm which qualifies for authorisation under Schedule 3:
(1) has ceased, or is to cease, to carry on regulated activities in the United Kingdom; and
(2) gives notice of that fact to the appropriate UK regulator ;
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.- 01/04/2013
Financial institutions giving up right to authorisation
SUP 14.6.4
See Notes
Where a financial institution (that is, a subsidiary of a credit institution) is passporting under the CRD (see SUP 14.6.1 G (2)), regulation 9(1) states that the incoming EEA firm may request the PRA 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.
- 01/01/2014
SUP 14.6.5
See Notes
The PRA may not, however, give a direction referred to in SUP 14.6.4 G unless:
(1) the incoming EEA firm has given notice to its Home State regulator; and
(2) the PRA has agreed with the Home State regulator that the direction should be given.
- 01/04/2013
SUP 14.6.6
See Notes
Regulation 9(3) requires that the date specified by the PRA in a direction referred to in SUP 14.6.4 G:
(1) must not be earlier than the date requested in the application; but
- 01/04/2013
SUP 14.6.7
See Notes
The PRA 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)).
- 01/04/2013
SUP 14.6.8
See Notes
Where the PRA gives a direction referred to in SUP 14.6.4 G, the incoming EEA firm may apply for Part 4A permission (see the PRA website www.bankofengland.co.uk/pra/Pages/authorisations/newfirm/default.aspx ) to take effect not earlier than the date that its qualification for authorisation is cancelled (as specified in the direction).
- 01/04/2013
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.
- 01/04/2013
SUP 14.6.10
See Notes
In addition, under section 35(2) an incoming Treaty firm may ask the appropriate UK regulator to give a direction cancelling its authorisation under Schedule 4 to the Act.
- 01/04/2013
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 4APermission).
- 01/04/2013
SUP 14.8
Further guidance
- 01/12/2004
SUP 14.8.1
See Notes
For further guidance on passporting procedures, an incoming EEA firm may contact the FCA or PRA authorisations team, or their usual supervisory contact at the appropriate UK regulator. Incoming Treaty firms and UCITS qualifiers may speak to their supervisory contact at the appropriate UK regulator in the first instance
- 01/04/2013