General passporting requirements under CRD IV
Produced in partnership with Kelly Sheppard of Moore Stephens
General passporting requirements under CRD IV

The following Financial Services guidance note Produced in partnership with Kelly Sheppard of Moore Stephens provides comprehensive and up to date legal information covering:

  • General passporting requirements under CRD IV
  • Single market passporting regime—CRD IV
  • Which firms can passport under CRD IV?
  • Types of activities that can be passported under CRD IV
  • Where do CRD IV banking activities take place?
  • Characteristics of branch and services passports
  • Notification requirements
  • Regulatory responsibilities

Single market passporting regime—CRD IV

Among the European Union’s (EU) core goals has been the development of the internal market, specifically to encourage the free movement of goods and services within the European Economic Area (EEA), by removing barriers to trade and providing mechanisms by which EEA businesses can easily access other European markets.

Within financial services, these mechanisms take the form of ‘passports’ and have been outlined in ten single market directives, one of which includes the fourth Capital Requirements Directive (Directive 2013/36/EU) (CRD IV), which took effect in the EU on 1 January 2014 combined with the Capital Requirements Regulation ((EU)575/2013) (CRR).

Passporting is the exercise of the right, available to a firm in scope of CRD IV to carry on activities in another EEA Member State, on the basis of its home state authorisation. The activities can be conducted through a branch in the host Member State, which represents the right of establishment, or on a cross-border services basis without using an establishment in the host state, which represents a cross-border services passport. For more information generally about passporting financial services across the EU, see Practice Notes: EU passporting and Treaty rights, Requirements for the exercise of passport rights in the EEA and Requirements for the exercise of passporting and Treaty rights in the