Approval of regulated activities
(1) The Treasury may by regulations approve a regulated activity for the purposes of this Schedule.
(2) The power under this paragraph includes power to approve a regulated activity—
(a) only so far as it is carried on by a person of a description specified in the regulations,
(b) only so far as it is carried on through a branch in the United Kingdom,
(c) only so far as it is carried on in other circumstances specified in the regulations, or
(d) subject to other limitations.
(3) In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7, 8 and 9 and the requirement in paragraph 10).
Corresponding activities regulated in Gibraltar
(1) The Treasury must by regulations make provision about how each approved activity corresponds to activities which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar.
(2) The power under this paragraph includes power to make provision about an activity—
(a) only so far as it is carried on by a person of a description specified in the regulations,
(b) only so far as it is carried on in other circumstances specified in the regulations, or
(c) subject to other limitations.
(3) In making regulations under this paragraph, the Treasury may have regard to any matter that they consider relevant (and see the restrictions in paragraphs 7 and 8 and the requirement in paragraph 10).
(1) The Treasury may not make regulations under paragraph 5 or 6 unless they are satisfied that doing so is compatible with each of the following objectives—
(a) to protect and enhance the soundness, stability and resilience of the UK financial system;
(b) to protect and enhance public confidence in the UK financial system;
(c) to prevent the use of the UK financial system for a purpose connected with financial crime;
(d) to ensure that the relevant markets in the United Kingdom function well;
(e) to protect consumers;
(f) to protect the operation of the compensation scheme;
(g) to protect public funds;
(h) to maintain and improve relations between the United Kingdom and other countries and territories with significant financial markets or significant markets for financial services.
(2) In this paragraph—
“ consumers ” has the meaning given in section 1G;
“ financial crime ” has the meaning given in section 1H;
“ public funds ” means the Consolidated Fund and any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury;
“ the relevant markets ” means the markets for services provided by persons carrying on the regulated activity or approved activity (as appropriate) to which the regulations relate.
Alignment of law and practice
(1) The Treasury may not approve a regulated activity under paragraph 5, or identify an activity as corresponding to an approved activity under paragraph 6, unless they are satisfied that, having regard to the objectives in paragraph 7(1), the relevant law and practice of the United Kingdom and Gibraltar are sufficiently aligned.
(2) In this paragraph, “ the relevant law and practice ” means—
(a) in relation to the United Kingdom, law and practice under which the carrying on of what is or would be the approved activity is authorised and supervised and other law and practice relevant to the carrying on of that activity,
(b) in relation to Gibraltar, law and practice under which the carrying on of what would be the corresponding activity is authorised and supervised and other law and practice relevant to the carrying on of that activity, and
(c) in relation to both the United Kingdom and Gibraltar, law and practice relevant to the objectives in paragraph 7(1).
(3) The reference to alignment between the law and practice of the United Kingdom and Gibraltar in sub-paragraph (1) includes both alignment as regards the effect of the law and practice and alignment of the text of the law and of any guidance or other documents relating to practice.
(1) The Treasury may not approve a regulated activity under paragraph 5 unless they are satisfied that, having regard to the objectives in paragraph 7(1), there is, or will be, adequate co-operation between—
(a) the UK entities listed in sub-paragraph (2), and
(b) the Gibraltar entities listed in sub-paragraph (3).
(2) The UK entities are—
(a) the Treasury,
(b) the FCA,
(c) the PRA, and
(d) the scheme manager.
(3) The Gibraltar entities are—
(a) the government of Gibraltar, and
(b) the Gibraltar regulator.
(4) In determining whether the test in sub-paragraph (1) is satisfied, the Treasury must have regard to—
(a) memoranda describing how the UK entities and the Gibraltar entities intend to co-operate,
(b) arrangements for the UK entities to obtain information and documents from the Gibraltar entities,
(c) arrangements for the verification of such information and documents (whether by, or by a person appointed by, a UK entity or a Gibraltar entity),
(d) arrangements for the Gibraltar entities to obtain information and documents from the UK entities, and
(e) anything else that the Treasury consider relevant.
Before making regulations under paragraph 5 or 6, the Treasury must consult—
(a) the government of Gibraltar,
(b) the FCA, and
(c) if the regulations relate to activities which consist of or include PRA-regulated activities, the PRA.
(1) The restrictions in paragraphs 7, 8 and 9 do not apply in relation to regulations under paragraph 5 to the extent that the regulations—
(a) revoke other regulations under paragraph 5, or
(b) otherwise amend other regulations under paragraph 5 in order to withdraw the Treasury's approval of an activity.
(2) The restrictions in paragraphs 7 and 8 do not apply in relation to regulations under paragraph 6 to the extent that the regulations—
(a) revoke other regulations under paragraph 6, or
(b) otherwise amend other regulations under paragraph 6 in order to provide that an activity which the Gibraltar regulator has authorised, or may authorise, a person to carry on in Gibraltar does not correspond to an approved activity.
Contains public sector information licensed under the Open Government Licence v3.0 (legislation.gov.uk).
