ENF 4.1 Application and purpose

This chapter applies to incoming firms. An incoming firm is:

1. (1)

   an EEA firm; or

2. (2)

   a Treaty firm;

which is exercising, or has exercised, its right to carry on a regulated activity in the United Kingdom under Schedule 3 (EEA passport rights) or Schedule 4 (Treaty rights) to the Act.

The chapter contains a statement of the FSA's policy on how it will use its power to intervene against incoming firms under section 196 of the Act. It outlines:

1. (1)

   the FSA's power to intervene against incoming firms under section 196 of the Act (The power of intervention);

2. (2)

   the grounds for exercising that power (both generally and in support of overseas regulators); and

3. (3)

   the FSA's policy on the exercise of that power.

The FSA has related powers to impose limitations and requirements on firms that have Part IV permission, and ENF 3 (Variation of permission on the FSA's own initiative) contains a statement of the FSA's policy on how it will use those powers. This chapter refers where appropriate to the policy in ENF 3.