The following Financial Services guidance note Produced in partnership with Kelly Sheppard of Moore Stephens provides comprehensive and up to date legal information covering:
The Capital Requirements Directive (2013/36/EU) (CRD IV) enables credit institutions and their subsidiaries that are financial institutions which meet certain conditions, to passport services to customers in other EEA Member States either by establishing a branch or by providing services on a cross-border basis. This Practice Note deals with the requirements that must be complied with should a firm wish to passport its services into or out of the UK and should be read in conjuction with the Practice Note: General passporting requirements under CRD IV.
A credit institution refers to a firm that accept deposits or equivalent repayable funds from the public and grants credits for their own account, which are typical activities of a bank.Directive 2013/36/EU, art 33
A financial institution includes:Directive 2013/36/EU, art 3(22)
entities that acquire holdings as their principal activity
asset management companies, and
firms conducting relevant activities as listed in Annex I of CRD IV (Article 34 of CRD IV), but excluding activities such as taking deposits and other repayable funds from the public, credit reference services and safe custody services
One essential condition for a financial institution to be able to passport its services under CRD IV passports is to be a subsidiary. When looking to provide services into the UK from other EEA Member States and into other EEA Member States from the UK, there are two types of passports applicable under CRD IV and the type of passport required is dependent on the manner in which the service is delivered. If the firm is looking to establish a physical presence, it will need to
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