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Status: You are viewing the version of the handbook as on 2012-12-13.

SUP 14.6 Cancelling qualification for authorisation

Incoming EEA firms

SUP 14.6.1 G RP

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. (1)

    having its EEA authorisation withdrawn by its Home State regulator; or

  2. (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 19of the Banking Consolidation Directive) which fulfils the conditions in articles 18 and 19of that Directive.

SUP 14.6.2 G RP

In addition, under section 34(2) an incoming EEA firm may ask the FSA to give a direction cancelling its authorisation under Schedule 3 to the Act.

SUP 14.6.3 G RP

Regulation 8 states that where an incoming EEA firm which qualifies for authorisation under Schedule 3:

  1. (1)

    has ceased, or is to cease, to carry on regulated activities in the United Kingdom; and

  2. (2)

    gives notice of that fact to the FSA;

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.

Auction regulation bidding: notification rule

SUP 14.6.3A R RP

4An EEA firm that has exercised an EEA right under the auction regulation to establish a branch in the United Kingdom must notify the FSA by email to emissionstrading@fsa.gov.uk when it ceases to carry on regulated activities through a branch passport in the United Kingdom or whenever possible thereafter.

SUP 14.6.3B G RP

4 The sole purpose of the notification in SUP 14.6.3A R is to inform the FSA that it may discontinue its supervision of the UK branch of the incoming EEA firm's compliance with the applicable provisions. The applicable provisions that apply to that branch are set out in SUP 13A Annex 1 (Application of the Handbook to Incoming EEA Firms).

Financial institutions giving up right to authorisation

SUP 14.6.4 G

Where a financial institution (that is, a subsidiary of a credit institution) is passporting under the Banking Consolidation Directive (see SUP 14.6.1 G (2)), regulation 9(1) states that the incoming EEA firm may request the FSA 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.

SUP 14.6.5 G

The FSA may not, however, give a direction referred to in SUP 14.6.4 G unless:

  1. (1)

    the incoming EEA firm has given notice to its Home State regulator; and

  2. (2)

    the FSA has agreed with the Home State regulator that the direction should be given.

SUP 14.6.6 G

Regulation 9(3) requires that the date specified by the FSA in a direction referred to in SUP 14.6.4 G:

  1. (1)

    must not be earlier than the date requested in the application; but

  2. (2)

    subject to (1), is as agreed between the FSA and the incoming EEA firm's Home State regulator.

SUP 14.6.7 G

The FSA 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)).

SUP 14.6.8 G

Where the FSA gives a direction referred to in SUP 14.6.4 G, the incoming EEA firm may apply for Part IV permission (see the FSA website "How do I get authorised":http://www.fsa.gov.uk/Pages/Doing/how/index.shtml2) to take effect not earlier than the date that its qualification for authorisation is cancelled (as specified in the direction).

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Incoming Treaty firms

SUP 14.6.9 G RP

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.

SUP 14.6.10 G RP

In addition, under section 35(2) an incoming Treaty firm may ask the FSA to give a direction cancelling its authorisation under Schedule 4 to the Act.

UCITS qualifiers

SUP 14.6.11 G RP

Section 36 of the Act states that a UCITS qualifier may ask the FSA to give a direction cancelling its authorisation under paragraph 1(1) of Schedule 5 to the Act. UCITS qualifiers should also refer to COLLG 3.1.11 G (Revocation of recognition of overseas schemes (section 279)3).1

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