The Investment Services Regulations 1995

43.—(1) Paragraph 2 of Schedule 2 to the Act (requirements for recognition of self-regulating organisation) shall have effect as if it included provision that the rules and practices of the organisation must be such as to secure that no European investment firm, other than one on which an absolute prohibition has been imposed under regulation 9 of these Regulations, is refused admission to the organisation, or expelled from it, for reasons relating to the firm’s fitness to carry on any home-regulated investment business.

(2) Paragraph 3 of that Schedule(1) shall have effect as if it included provision that the rules of the organisation must not include, as respects any European investment firm—

(a) provision requiring the firm to have and maintain financial resources in respect of any home-regulated investment business carried on by it; or

(b) provision as to any other matter for which, under the Investment Services Directive, responsibility is reserved to a supervisory authority in the firm’s home State.

(3) That paragraph shall also have effect as if—

(a) the reference in sub-paragraph (3) to Chapter VI of Part I of the Act included a reference to regulation 10 of these Regulations; and

(b) it included provision that the rules of the organisation must be such as to secure that, where a power falling within that sub-paragraph is exercisable by virtue of a European investment firm’s contravention of a requirement of any provision made pursuant to any provision of the Investment Services Directive that confers power on host States, the exercise of the power shall be subject to such restrictions as are necessary for the purposes of complying with article 19 of the Investment Services Directive.

(4) Paragraph 7 of that Schedule shall have effect as if it included provision that, for the purposes of complying with the Investment Services Directive, the organisation must be able and willing to co-operate, by the sharing of information and otherwise, with supervisory authorities in other EEA States.

(1)

Paragraph 3 has been amended by section 203 of the Companies Act 1989 (c. 40).