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20.—(1) Section 49 of the Act (persons connected with an applicant for Part IV permission) is amended as follows.
(2) In subsection (2)(a), after “EEA firm”, insert “(other than an EEA firm falling within paragraph 5(e) of Schedule 3 (insurance and reinsurance intermediaries))”.
(3) After subsection (2), insert—
“(2A) But subsection (2) does not apply to the extent that the permission in question relates to an insurance mediation activity (within the meaning given by paragraph 2(5) of Schedule 6).”.
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