Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (Text with EEA relevance)

Article 46U.K.General provisions

1.A third-country firm may provide investment services or perform investment activities with or without any ancillary services to eligible counterparties and to professional clients within [F1Part 2 of Schedule 1 to this Regulation] [F2in the United Kingdom] without the establishment of a branch where it is registered in the register of third-country firms kept by [F3the FCA] in accordance with [F4Article 48 ].

2.[F5The FCA] shall register a third-country firm that has applied for the provision of investment services or performance of activities [F6in the United Kingdom] in accordance with paragraph 1 only where the following conditions are met:

[F7(a)the Treasury has made a determination under Article 47(1) in respect of the third country;

(aa)the firm, and the services or activities, fall within the scope of the determination;]

(b)the firm is authorised in the jurisdiction where its head office is established to provide the investment services or activities to be provided in the [F8United Kingdom] and it is subject to effective supervision and enforcement ensuring a full compliance with the requirements applicable in that third country;

(c)cooperation arrangements have been established pursuant to Article 47(2).

[F9(d)the firm has established the necessary arrangements and procedures to provide the information required by rules made under paragraph 6B of this Article;

(e)the firm has established the necessary arrangements and procedures to comply with requirements imposed under Article 48A.]

F103.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.The third-country firm referred to in paragraph 1 shall submit its application to [F11the FCA] after the [F12making of a determination by the Treasury under Article 47(1) that the legal and supervisory arrangements of the third country in which the third-country firm is authorised satisfy the requirements described in Article 47(1).]

[F13An application for registration must—

(a)be made in such form and manner as the FCA may direct, and

(b)contain, or be accompanied by, such information as the FCA may direct.]

The applicant third-country firm shall provide [F14the FCA] with all [F15further] information necessary for its registration. Within 30 working days of receipt of the application, [F14the FCA] shall assess whether the application is complete. If the application is not complete, [F14the FCA] shall set a deadline by which the applicant third-country firm is to provide additional information.

The registration decision shall be based on the conditions set out in paragraph 2.

Within 180 working days of the submission of a complete application, [F16the FCA] shall inform the applicant third-country firm in writing with a fully reasoned explanation whether the registration has been granted or refused.

F17...

5.Third-country firms providing services in accordance with this Article shall inform clients established in the [F18United Kingdom], before the provision of any investment services, that they are not allowed to provide services to clients other than eligible counterparties and professional clients within the meaning of Section I of Annex II to Directive 2014/65/EU and that they are not subject to supervision in the [F18United Kingdom]. They shall indicate the name and the address of the competent authority responsible for supervision in the third country.

The information in the first subparagraph shall be provided [F19in writing, in a prominent way and in such form as the FCA may direct ].

F20... Where an eligible counterparty or professional client within [F21Part 2 of Schedule 1 to this Regulation] established or situated in the [F18United Kingdom] initiates at its own exclusive initiative the provision of an investment service or activity by a third-country firm, this Article does not apply to the provision of that service or activity by the third-country firm to that person including a relationship specifically related to the provision of that service or activity. An initiative by such clients shall not entitle the third-country firm to market new categories of investment product or investment service to that individual.

[F225A.For the purposes of paragraph 5, where a third-country firm or a person acting on behalf of a third-country firm solicits a person, the provision of an investment service or activity by the third-country firm to the person is not initiated at the person's own exclusive initiative.]

6.Third-country firms providing services or performing activities in accordance with this Article shall, before providing any service or performing any activity in relation to a client established in the [F23United Kingdom], offer to submit any disputes relating to those services or activities to the jurisdiction of a court or arbitral tribunal in [F24the United Kingdom].

[F256A.Third-country firms providing services or performing activities in accordance with this Article must—

(a)keep the data relating to all orders and transactions in the United Kingdom in financial instruments which they have carried out, whether on own account or on behalf of a client, for a period of five years, and

(b)make that data available to the FCA on request.

6B.The FCA may make rules requiring third-country firms providing services or performing activities in accordance with this Article to provide information specified in the rules to the FCA at intervals specified in the rules.]

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Textual Amendments

F1Words in Art. 46(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(a)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F2Words in Art. 46(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(a)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F3Words in Art. 46(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(a)(iii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4Words in Art. 46(1) substituted (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 10 para. 5(2); S.I. 2021/739, reg. 3(o)

F5Words in Art. 46(2) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(b)(i)(aa) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F6Words in Art. 46(2) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(b)(i)(bb) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F7Art. 46(2)(a)(aa) substituted for Art. 46(2)(a) (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 10 para. 5(3)(a); S.I. 2021/739, reg. 3(o)

F8Words in Art. 46(2)(b) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(b)(iii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F9Art. 46(2)(d)(e) inserted (1.7.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 10 para. 5(3)(b); S.I. 2021/739, reg. 3(o)

F10Art. 46(3) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 33(1)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)