SUP 13A.4 EEA firms establishing a branch in the United Kingdom

1. (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 Kingdom10, 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. (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 FCA11 to do so (see SUP 13A.3.1C G).

For the purposes of paragraph 13(2)(b) of Part II of Schedule 3 to the Act, the applicable provisions may include the appropriate UK regulator's11 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.

1. (1)

   When the appropriate regulator11 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)9

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   within two months of the notice2 date.

   2
2. (1A)

   The notice date is:2

   1. (a)

      for a MiFID investment firm, the date on which the Home State gave the consent notice; and2

   2. (b)

      in any other case, the date on which the appropriate UK regulator11 received the consent notice.2

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3. (2)

   Although theappropriate UK regulator11 is not required to notify the applicable provisions to an EEA firm passporting under 10MIFID or AIFMD,6 these provisions are set out in SUP 13A Annex 1 (Application of the Handbook to Incoming EEA Firms).

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8When the FCA receives a consent notice from the EEA firm's Home State regulator in respect of a EEA firm within paragraph 5(i) of Part I of Schedule 3 to the Act, it will, under paragraph 13(3A);

1. (1)

   notify the firm of the applicable provisions (if any); and

2. (2)

   use the information received from the EEA firm's Home State regulator to enter the necessary information into the Financial Services Register.

10When the appropriate UK regulator receives a consent notice from the EEA firm’s Home State regulator in respect of an EEA firm within paragraph 5(e) of Part I of Schedule 3 to the Act, it will, under paragraph 13(3C):

1. (1)

   acknowledge receipt; and

2. (2)

   notify the EEA firm’s Home State regulator of the applicable provisions (if any),

before the end of the period of one month beginning with the day on which the appropriate UK regulator received the consent notice.

1. (1)

   11Where the PRA receives a consent notice, it will give a copy to the FCA without delay, and where the FCA receives a consent notice it will give a copy to the PRA, where relevant, without delay.

2. (2)

   In a case where the FCA is the appropriate UK regulator, the consent of the PRA is required for any notification by the FCA which relates to:

   1. (a)

      a PRA-regulated activity;

   2. (b)

      a PRA-authorised person; or

   3. (c)

      a person whose immediate group includes a PRA-authorised person.

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).