Common use of Passporting Clause in Contracts

Passporting. 8. Both the PRA and the FCA will have a role in the administration of the passport notification process as explained in the table below. This section complies with FSMA requirements to publish arrangements made to consult each other regarding EEA passport rights. These arrangements came into force on 1 April 2013. 9. The lead regulator will be responsible for managing a single administrative process, providing the other regulator with copies of any forms, information and accompanying documents received and administering notices to the Home or Host state regulator and to the firm concerned. The lead regulator will provide the other with copies of the notice received, as required, and have regard to any advice or representations received from the other. Scenario Role of PRA Role of FCA 1 Inward passporting via CRD or SII. Inward passporting (all other single market directives, paragraph 1 of Schedule 3 to FSMA) where firm is already passporting via CRD or SII. Lead regulator. PRA is required to consult with the FCA. (PRA must give a copy of the consent notice without delay to FCA, paragraph 13(1B)/14(1B) of Schedule 3 to FSMA). May make representations to PRA. 2 Inward passporting (all single market directives, paragraph 1 of Schedule 3 to FSMA) where firm is not passporting via CRD or SII. For passporting notices from an investment firm under ▇▇▇▇▇ ▇▇ wishing to set up a UK branch, which relate to a PRA-regulated activity, a PRA-authorised person or where the firm is in the immediate group of a PRA- authorised person, the FCA requires the consent of the Lead regulator. For passporting notices to an investment firm under MiFID II wishing to set up a UK branch, which relate to a PRA-regulated activity, a PRA-authorised person or where the firm is in the immediate group of a PRA- authorised person, the FCA Scenario Role of PRA Role of FCA PRA (Paragraph 13(1D) of Schedule 3 to FSMA). requires the consent of the PRA. (Paragraph 13(1D) of Schedule 3 to FSMA). FCA must give a copy of the consent notice to the PRA without delay, where it receives the notice from an investment firm under MIFID II wishing to set up a UK branch, where the firm intends to provide services or activities in the UK consisting of or including dealing on its own account. This duty only applies where the firm is required under Article 28(2) of the CRD4 to have initial capital of EUR 730, 000 (Paragraph 13(1C) of Schedule 3 to FSMA and paragraph 2A of the Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001 (SI 2001/2511)). 4 Outward passporting of solo-regulated firms (all single market directives, paragraph 1 of Schedule 3 Where the firm is in the immediate group of a PRA- authorised person, the PRA may make representations to Lead regulator. FCA is required to consult with the PRA before deciding whether to give a consent Scenario Role of PRA Role of FCA to FSMA). the FCA (paragraph 19(7D) or 20(3AB) of Schedule 3 to FSMA). notice under Schedule 3 for an establishment or services passport where the applicant firm is in the immediate group of a PRA-authorised person. (paragraph 19(7D) or 20(3AB) of Schedule 3 to FSMA).