Exercising passport rights under MiFID and MiFID II

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Exercising passport rights under MiFID and MiFID II
  • The MiFID and MiFID II passporting regime
  • Services that can be passported under MiFID and MiFID II
  • Establishing a branch or using a tied agent in another EEA Member State
  • Notice of intention
  • Regulatory consent notices
  • Regulation and supervision of branches
  • MiFID passporting firms providing cross-border services
  • Changing details after passport is in place
  • Access to MTFs, OTFs and RMs

Exercising passport rights under MiFID and MiFID II

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

The MiFID and MiFID II passporting regime

One of the most important facets of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) was the ability for investment firms authorised in one European Economic Area (EEA) Member State to provide services in other Member States, either on a cross-border basis (eg by telephone or internet) or by establishing a branch in another Member State without having to be authorised separately in each Member State where they carry on business. This is known as 'passporting'. MiFID also added investment services and ancillary activities to the list of activities that credit institutions can passport under the Capital Requirements Directive (Directive 2013/36/EU) (CRD IV).

The regulatory regime that governed firms authorised in one EEA Member State and credit institutions seeking to exercise passporting rights under MiFID depended on whether the firms planned to provide cross-border investment services or establish branches

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