SUP 13A.4 EEA firms establishing a branch in the United Kingdom
The conditions for establishing a branch
- (1)
Before an EEA firm 5(other than an EEA pure reinsurer or an EEA firm that has received authorisation under article 18 of the auction regulation)5 3exercises an EEA right to establish a branch in the United Kingdom other than under the Insurance Mediation Directive, the Act requires it to satisfy the establishment conditions, as set out in paragraph 13(1) of Part II of Schedule 3 to the Act.
- (2)
For the purposes of paragraph 13(1)(b)(iii) of Part II of Schedule 3 to the Act, the information to be included in the consent notice has been prescribed under regulation 2 of the EEA Passport Rights Regulations.
4An EEA UCITS management company may not exercise an EEA right to provide collective portfolio management services for a UCITS scheme from a branch in the United Kingdom until approved by the FSA to do so (see SUP 13A.3.1C G).
Where an EEA firm exercises its EEA right to establish a branch in the United Kingdom under the Insurance Mediation Directive, the Act requires it to satisfy the establishment conditions, as set out in paragraph 13(1A) of Part II of Schedule 3 to the Act.
For the purposes of paragraph 13(2)(b) of Part II of Schedule 3 to the Act, the applicable provisions may include FSA rules. The EEA firm is required to comply with relevant rules when carrying on a passported activity through a branch in the United Kingdom as well as with relevant UK legislation.
1Guidance on the matters that are reserved to a firm's Home State regulator is located in SUP 13A Annex 2.
The notification procedure
- (1)
When the FSA receives a consent notice from the EEA firm's Home State regulator, it will, under paragraphs 13(2)(b), (c) and 13(3) of Part II of Schedule 3 to the Act, notify the applicable provisions (if any) to:
- (a)
the EEA firm; and
- (b)
in the case of an EEA firm passporting under the Insurance Directives, the Home State regulator;
within two months of the notice2 date.
2 - (a)
- (1A)
The notice date is:2
- (a)
for a MiFID investment firm, the date on which the Home State gave the consent notice; and2
- (b)
in any other case, the date on which the FSA received the consent notice.2
- (a)
- (2)
Although the FSA is not required to notify the applicable provisions to an EEA firm passporting under the Insurance Mediation Directive, these provisions are set out in SUP 13A Annex 1 (Application of the Handbook to Incoming EEA Firms).
Auction regulation bidding: notification rule and applicable provisions
5An incoming EEA firm that is exercising an EEA right under the auction regulation to establish a branch in the United Kingdom must submit the form in SUP 13A Annex 4 R prior to its establishment of that branch or whenever possible thereafter.
The sole purpose of the notification in SUP 13A.4.5 R is to enable the FSA to supervise the UK branch of the incoming EEA firm's compliance with the applicable provisions on an ongoing basis. The applicable provisions that apply to that branch are set out in SUP 13A Annex 1 G (Application of the Handbook to Incoming EEA Firms).