The Investment Services Regulations 1995

Grant and refusal of authorisation

23.—(1) Section 27 of the Financial Services Act (grant and refusal of authorisation) shall have effect as if it included provision that where a European investment firm or a quasi-European investment firm holds an authorisation granted under that section, the firm is not by virtue of that authorisation an authorised person as respects any home-regulated investment business.

(2) That section shall also have effect in relation to a relevant firm, that is to say, a UK investment firm which is not a UK authorised institution, as if it included provision—

(a) that the Board may not grant authorisation to a relevant firm unless the Board is satisfied that the requirements of paragraph (3) below are met;

(b) that the Board may not grant authorisation to a relevant firm where it is—

(i) a subsidiary undertaking;

(ii) a subsidiary undertaking of the parent undertaking; or

(iii) controlled by the 50 per cent. controller,

of an investment firm or credit institution which is for the time being authorised to act as such a firm or institution by the relevant supervisory authority in another EEA State, unless the Board has consulted that authority;

(c) that the Board is required to specify, in a notice given under section 27(8) of the Financial Services Act to a relevant firm, that the date on which authorisation takes effect is the date upon which the notice is given; and

(d) that the Board is under an obligation to notify each applicant who is a relevant firm of the Board’s decision on the application not later than six months after the date on which the application was received.

(3) The requirements of this paragraph are that—

(a) the head office of the firm, and, if the firm has a registered office, its registered office, must be situated in the United Kingdom;

(b) in the case of a firm which is neither a body corporate nor a partnership constituted under the law of Scotland, the firm must carry on business in the United Kingdom;

(c) the firm must have adequate capital to meet the requirements of any rules applicable to it requiring the maintenance of financial resources; and

(d) except in the case of a firm which is subject to rules of the organisation making provision with respect to the matters dealt with in section 48(2)(l) of the Financial Services Act (protection of investors on death etc. of natural person), its business is effectively directed by two or more persons.