Financial Services and Markets Act 2000

[F1 PART 3 U.K. Permission to carry on an approved activity

Textual Amendments

F1 Sch. 2A inserted (1.9.2023 for specified purposes) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 6 (as amended (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 100(3)(b)); S.I. 2023/934, reg. 2(a)

Obtaining permission to carry on an approved activity U.K.

12 (1) If the appropriate UK regulator receives a notification from the Gibraltar regulator that a Gibraltar-based person wants to be able to carry on an approved activity in the United Kingdom (see paragraph 15), the person obtains permission to do so at the end of the period for considering the notification, as it relates to the activity (see paragraph 16). U.K.

(2) The person does not obtain permission to carry on an activity under sub-paragraph (1) if, during the period for considering the notification—

(a) the appropriate UK regulator rejects the notification, as it relates to the activity (see paragraph 17), or

(b) the Gibraltar regulator withdraws the notification, as it relates to the activity.

(3) References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.

(4) A permission obtained under this paragraph is referred to in this Act as “a Schedule 2A permission”.

Schedule 2A permission U.K.

13 (1) A Schedule 2A permission for a person to carry on an activity is a permission to do so only if and to the extent that— U.K.

(a) the person is a Gibraltar-based person,

(b) the activity is an approved activity, and

(c) the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

subject to the transitional arrangements in Parts 9 and 10 of this Schedule.

(2) A Gibraltar-based person's Schedule 2A permission to carry on an activity is a permission to do so—

(a) on terms equivalent to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar, and

(b) subject to any limitations specified in the notification (for example, as to the circumstances in which the activity is to be carried on in the United Kingdom) (and see also paragraph 21(3)).

(3) The reference in sub-paragraph (2)(a) to the terms of the person's permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar includes—

(a) any restrictions included in the permission, and

(b) any other restrictions imposed by the Gibraltar regulator on the carrying on by the person of the activity in Gibraltar.

The appropriate UK regulator U.K.

14 U.K. In relation to a notification, “the appropriate UK regulator” means—

(a) the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and

(b) the FCA, in any other case.

Notifying the appropriate UK regulator U.K.

15 (1) A notification must— U.K.

(a) name the Gibraltar-based person,

(b) state the address of the person's head office in Gibraltar,

(c) specify the approved activity which the person wants to be able to carry on in the United Kingdom, including any limitations,

(d) specify the corresponding activity, including any restrictions,

(e) state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,

(f) state that the Gibraltar regulator consents to the person carrying on the approved activity in the United Kingdom,

(g) identify each person who is responsible for managing an aspect of the Gibraltar-based person's affairs relating to the approved activity and describe that person's responsibilities as regards those affairs,

(h) state whether the Gibraltar-based person wants to carry on the activity through a branch in the United Kingdom and, if so—

(i) identify each person who is or will be responsible for managing an aspect of the affairs of the branch, and

(ii) describe that person's responsibilities as regards those affairs, and

(i) contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.

(2) A notification may relate to more than one approved activity.

(3) The Treasury may by regulations change the information that a notification must contain.

(4) Regulations under sub-paragraph (3) may amend this paragraph, but may not amend or repeal sub-paragraph (1)(i).

(5) Before making regulations under sub-paragraph (3), the Treasury must consult—

(a) the government of Gibraltar, and

(b) the UK regulators.

(6) In sub-paragraph (1), the references to managing an aspect of a person's affairs or a branch's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of the affairs should be carried on.

Considering a notification U.K.

16 (1) Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay. U.K.

(2) The period for considering a notification is—

(a) so far as it relates to an activity that is to be carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and

(b) so far as it relates to any other activity, the period of one month beginning with that day.

(3) If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of an approved activity specified in the notification, then the period for considering the notification as it relates to the activity ends when the notice is given.

(4) A “confirmation notice” is a written notice confirming that the person has a Schedule 2A permission in relation to the approved activity.

(5) A confirmation notice may relate to more than one activity.

Rejecting a notification U.K.

17 (1) The appropriate UK regulator may not reject a notification unless— U.K.

(a) it is required to do so under paragraph 18, or

(b) it has power to do under paragraph 19 or 20.

(2) A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.

(3) The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification relating to the same person and the same activity.

Duties to reject U.K.

18 (1) The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 15(1). U.K.

(2) The appropriate UK regulator must reject a notification, so far as it relates to an activity, if the activity ceases to be an approved activity.

(3) The appropriate UK regulator must reject a notification, so far as it relates to an approved activity, if satisfied that the Gibraltar-based person does not have permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar.

Power to reject: prohibition order in respect of senior manager U.K.

19 (1) The appropriate UK regulator may reject a notification, so far as it relates to an approved activity, if satisfied that a person with responsibility for managing an aspect of the Gibraltar-based person's affairs— U.K.

(a) is prohibited from performing a function by a prohibition order, and

(b) performs a senior management function in relation to the carrying on of the approved activity by the Gibraltar-based person in the United Kingdom, Gibraltar or elsewhere or is expected to do so if the person obtains a Schedule 2A permission to carry on the approved activity in the United Kingdom.

(2) In sub-paragraph (1)—

(a) the reference to managing an aspect of a person's affairs includes a reference to taking decisions, or participating in the taking of decisions, about how that aspect of those affairs should be carried on,

(b) “prohibition order” means—

(i) an order under section 56,

(ii) an order under section 143S, or

(iii) an order under the law of Gibraltar which the appropriate UK regulator considers to be equivalent to an order under section 56 or 143S, and

(c) “senior management function”, in relation to the carrying on of an activity by the Gibraltar-based person, means a function which requires a person to manage an aspect of the Gibraltar-based person's affairs which involves, or might involve, a risk of serious consequences—

(i) for the Gibraltar-based person, or

(ii) for business or other interests in the United Kingdom, Gibraltar or elsewhere.

Power to reject: loss of access right and serious threat to the UK U.K.

20 (1) The appropriate UK regulator may reject a notification if satisfied that the Gibraltar-based person— U.K.

(a) lost a relevant access right at any time, and

(b) poses, or is likely to pose, a serious threat to—

(i) the interests of consumers (as defined in section 1G), or

(ii) the soundness, stability and resilience of the UK financial system or a part of that system.

(2) The appropriate UK regulator may reject a notification if satisfied that—

(a) the Gibraltar-based person—

(i) is a member of the same group as a person that lost a relevant access right at any time, or

(ii) has close links with such a person (as defined in paragraph 2C(2) of Schedule 6), and

(b) given the nature of the relationship between that person and the Gibraltar-based person, the Gibraltar-based person poses, or is likely to pose, a serious threat to—

(i) the interests of consumers (as defined in section 1G), or

(ii) the soundness, stability and resilience of the UK financial system or a part of that system.

(3) For the purposes of this paragraph, a person lost a relevant access right if—

(a) its Part 4A permission was cancelled,

(b) its Schedule 2A permission was cancelled, or

(c) it ceased to qualify for authorisation under Schedule 3 (other than by virtue of the repeal of that Schedule).

(4) When deciding whether to reject a notification under this paragraph, the appropriate UK regulator must have regard, among other things, to the reasons why the person lost the relevant access right.]