The following Financial Services guidance note Produced in partnership with Orrick, Herrington & Sutcliffe (Europe) LLP provides comprehensive and up to date legal information covering:
UK authorised firms may be eligible to carry out permitted activities in another European Economic Area (EEA) state if they fulfil the requirements under the relevant single market directive.
Passporting is an EEA right which entitles a person to establish a branch, or provide services, in another EEA State if it is within the scope of a relevant EU single market directive. A UK-authorised firm which is dual regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) wishing to exercise its passporting rights must notify the PRA of its intention to do so. A solo regulated firm must notify the FCA.
The relevant EU single market directives include:
Banking Consolidation Directive (Directive 2006/48/EC) (BCD)
Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) (for investment firms)
Capital Requirements Directive (Directive 2013/36/EU) (CRD) (for credit institutions and financial institutions)
Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EC) (UCITS Directive) (for UCITS management companies)
Insurance Distribution Directive (Directive 2016/97/EU) (IDD) (for insurance and reinsurance intermediaries)
Mortgage Credit Directive (Directive 2014/17/EU) (MCD)
Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFM Directive or AIFMD) (for alternative investment funds)
Passporting rights also arise from UK Regulations implementing the following directives:
Payments Services Directive, and
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