The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

Third country firms with an EEA branch: provision of services

9.—(1) A third country firm with an EEA branch is not to be regarded as carrying on a regulated activity if it carries on the activity in the course of exercising rights under Article 47.3 (equivalence decision) of the markets in financial instruments regulation.

(2) But paragraph (1) only applies once the third country firm with an EEA branch satisfies the service conditions for incoming EEA investment firms.

(3) The service conditions for incoming EEA investment firms apply to a third country firm for the purposes of paragraph (1) with the modifications set out in paragraphs (5) and (6).

(4) A reference to the home state regulator has effect as if in each place it were a reference to the competent authority of the EEA State in which the third country firm with an EEA branch is established (“supervising EEA competent authority”).

(5) In paragraph 14(1)(b)(1)(services) of Schedule 3 (EEA passport rights) the requirement for a regulator’s notice to contain such information as may be prescribed has effect as if it were a requirement for the notice to contain—

(a) a statement by that competent authority that the branch—

(i) is authorised in accordance with Article 39 (establishment of a branch) of the markets in financial instruments directive;

(ii) is entitled to exercise rights under Article 47.3 of the markets in financial services regulation; and

(iii) intends to exercise those rights in the United Kingdom; and

(b) the branch’s programme of operations provided to the supervising EEA competent authority in accordance with Article 40(b) (obligation to provide information) of the markets in financial instruments directive.

(6) In this regulation “service conditions for incoming EEA investment firms” means the service conditions set out in paragraph 14(1)(2) of Schedule 3 to the Act which apply to an EEA firm as defined by paragraph 5(a)(3) (EEA firm) of that Schedule.

(1)

Paragraph 14(1)(b) was amended by S.I. 2003/1473, paragraph 3(2) of Schedule 4 to the Financial Services Act 2012, and S.I. 2015/910.

(2)

Sub-paragraphs (1)(b) and (ba) of paragraph 14 were amended as mentioned previously. The remaining provisions of paragraph 14 were amended by S.I. 2003/1473, paragraphs (2), (3), (4), (5), (6)(a) and (b), and (7) of Schedule 4 to the Financial Services Act 2012, S.I. 2012/1906, S.I. 2013/1773, and S.I. 2015/910,

(3)

Paragraph 5(a) was amended by S.I. 2007/126.