Part IV Permission to Carry on Regulated Activities

Connected persons

49 Persons connected with an applicant.

(1)

In considering—

(a)

an application for a Part IV permission, or

(b)

whether to vary or cancel a Part IV permission,

the Authority may have regard to any person appearing to it to be, or likely to be, in a relationship with the applicant or person given permission which is relevant.

(2)

Before—

(a)

giving permission in response to an application made by a person who is connected with an EEA firm F1(other than an EEA firm falling within paragraph 5(e) of Schedule 3 (insurance and reinsurance intermediaries)), or

F2(b)

varying any permission given by the Authority to such a person, where the effect of the variation is to grant permission for the purposes of a single market directive other than the one for the purposes of which the existing permission was granted,

the Authority must consult the firm’s home state regulator.

F3(2A)

But subsection (2) does not apply to the extent that the permission relates to—

(a)

an insurance mediation activity (within the meaning given by paragraph 2(5) of Schedule 6); or

(b)

a regulated activity involving a regulated mortgage contract F4, a regulated home reversion plan F5, a regulated home purchase plan or a regulated sale and rent back agreement.

(3)

A person (“A”) is connected with an EEA firm if—

(a)

A is a subsidiary undertaking of the firm; or

(b)

A is a subsidiary undertaking of a parent undertaking of the firm.

F6(4)

In subsection (2A)(b) “regulated mortgage contract”, “regulated home reversion plan”, “ regulated home purchase plan ” and “ regulated sale and rent back agreement ” shall be construed in accordance with—

(a)

section 22;

(b)

any relevant order under that section; and

(c)

Schedule 2.