PART IIIRECOGNITION IN OTHER MEMBER STATES OF UK INSTITUTIONS
Procedural requirements
Procedural requirements for carrying on certain listed activities22
1
Subject to paragraph (2) below, a UK institution shall not—
a
carry on in another member State by the provision of services any listed activity which it is authorised or permitted to carry on in the United Kingdom; or
b
establish a branch in another member State for the purpose of carrying on such an activity,
unless the requirements of paragraph 1 of Schedule 6 to these Regulations have been (and, in the case of a UK subsidiary, continue to be) complied with in relation to its carrying on of the activity or, as the case may be, its establishment of the branch.
2
Paragraph (1) above shall not apply in relation to a UK subsidiary if—
a
there has been no compliance with the requirements of paragraph 1 of Schedule 6 to these Regulations in relation to its carrying on of an activity or its establishment of a branch; or
b
each such compliance has ceased to have effect.
3
A UK institution shall not change the requisite details of a branch established by it in another member State unless the requirements of paragraph 5 of Schedule 6 to these Regulations have been complied with in relation to its making of the change.
4
An institution which contravenes paragraph (1) or (3) above shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
5
In proceedings brought against an institution for an offence under paragraph (4) above it shall be a defence for the institution to show that it took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.
6
Schedule 6 to these Regulations (which contains requirements to be complied with by or in relation to UK institutions) shall have effect.