Requirements for the exercise of passporting and Treaty rights in the UK
Requirements for the exercise of passporting and Treaty rights in the UK

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

  • Requirements for the exercise of passporting and Treaty rights in the UK
  • Requirements for the exercise of passporting rights
  • Exercise of Treaty rights
  • UCITS qualifiers
  • Top-up permissions
  • Securities Finance—Getting The Deal Through

This Practice Note focuses purely on procedural requirements for firms wishing to exercise passporting rights and Treaty rights in the UK. For further information and definitions, see Practice Notes: EU passporting and Treaty rights and Applying for passporting.

For information about the procedural requirements for UK Firms wishing to do business in other EEA States, see Practice Note: Exercising passport rights in the EEA under the Single Market Directives.

Requirements for the exercise of passporting rights

The Financial Services and Markets Act 2000 (FSMA 2000), the Prudential Regulation Authority (PRA) Rulebook and Financial Conduct Authority (FCA) Handbook set out the requirements for an EEA firm seeking to exercise an entitlement to establish a branch or provide cross-border services in the UK under the Single Market Directives. Firms should also consider the requirements they will have to comply with in their home state.

Authorisation

Generally, an EEA firm which seeks to exercise its EEA rights in the UK qualifies for UK authorisation once it satisfies the relevant conditions. These are known as the 'establishment conditions' and the 'service conditions' in relation to branches and services respectively (see below).

However, per FSMA 2000, Sch 3, ss 12(5) - 12(6) a reinsurer authorised under the Directive 2009/138/EC (the Solvency II Directive) by its home state regulator qualifies for UK authorisation on establishing a branch or