REC 6A.2 Removal of passport rights from EEA market operator

1Under section 312B of the Act, the FCA5 may prohibit an EEA market operator from making or, as the case may be, continuing arrangements in the United Kingdom, to facilitate access to, or use of, a regulated market,6 multilateral trading facility or organised trading facility6 operated by the operator if:

1. (1)

   the FCA5 has clear and demonstrable grounds for believing that the operator has contravened a relevant requirement;6 and

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2. (2)

   the FCA5 has first complied with sections 312B(3) to (9) of the Act.

   5

A requirement is relevant if it is imposed:

1. (1)

   by the operator's Home State regulator in the implementation of MiFID or any EU2 legislation made under MiFID;

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2. (2)

   by provision implementing MiFID, or any EU2 legislation made under it, in the operator's Home State; or

   2
3. (3)

   by any directly applicable EU2 regulation made under MiFID.

   2

The procedure the FCA5 will follow if it is to exercise this prohibition power is set out in sections 313B(3) to (9) of the Act.

If the FCA5 exercises this prohibition power it must at the earliest opportunity notify the Commission and ESMA4 of the action taken in relation to the operator.

The operator's exempt person status ceases to apply if the FCA5 exercises this prohibition power.

The operator's right to make arrangements in the United Kingdom, to facilitate access to, or use of, a regulated market,6 multilateral trading facility or organised trading facility6, operated by the operator may be reinstated (together with its exempt person status) if the FCA5 is satisfied that the contravention which led the FCA5 to exercise its prohibition power has been remedied.

3In accordance with the RAP regulations, references in section 312B of the Act to regulated market are to be read as including reference to an auction platform and references to MiFID are to be read as including reference to the auction regulation.