Passporting in the EU for banking, financial services and ...

Passporting refers to the 'single licence' concept which enables EU businesses to provide their services across the EU. Passporting draws from ...  Back Forward Save&file Vieworiginal Forward Print ShareFacebookTwitterLinkedIn Follow Pleaselogintofollowcontent. Like Instruct addtofolder: Mysaved(default) Readlater Folderssharedwithyou Registernowforyourfree,tailored,dailylegalnewsfeedservice. Questions?Pleasecontact[email protected] Register PassportingintheEUforbanking,financialservicesandinsuranceundertakings AntoniouMcCollum&CoLLC EuropeanUnion,Global February162018 AccesstotheEU’sSingleMarketisincreasinglybecomingapriorityfornon-EUcreditinstitutions,financialservicesprovidersandinsuranceundertakings.StructuringanEUpresenceentailsnavigatingthroughanumberofoptions,eachwithdifferentresultsfromanoperations,compliance,taxandsupervisionperspectives. Non-EUcreditinstitutions,financialservicesprovidersandinsuranceundertakingsfrequentlyopttoestablishanEU-basedentity,licensedtoprovideregulatedservicesunderEUlaw,whichthenpassportsitslicenseacrosstheEU. Organisationsmayseektoinvokeequivalenceoftheirhomecountry’ssupervisoryregimewiththatoftheEU,wheresuchequivalenceisrecognised.Wediscussequivalenceandpassportingforbanking,financialservicesandinsuranceundertakingsbelow. Equivalence TheEUrecognisesthatcertainregulatoryorsupervisoryregimesofnon-EUcountriesareequivalenttotherespectiveEUregime.EquivalenceallowsEUsupervisorstorelyoncomplianceandsupervisionofnon-EUentitieswithequivalentrulesintheirhomejurisdictions. Anequivalencedecisionmaytaketheformofanimplementingordelegatedact,inaccordancewithwhatisenvisagedinthecorrespondingequivalenceprovisioninthebasicact.Theequivalencedecisionmaystipulatewhetheritisfullorprovisionalandifitappliesforanindefiniteorafiniteperiod. Equivalencedecisionsareinplaceforthefinancialservices,insuranceandbankingindustries. Passporting Passportingreferstothe‘singlelicence’conceptwhichenablesEUbusinessestoprovidetheirservicesacrosstheEU.PassportingdrawsfromthefundamentalfreedomsenshrinedinprimaryEUlaw:thefreedomofestablishmentandthefreedomofservices. Passportingcanhappenthroughoneoftwoways:establishingbranchesinotherEEAcountriesorprovidingservicesacrosstheEEAonacross-borderbasis. EntitiesthatcanpassporttheirsinglelicenceacrosstheEUincludethefollowing: ►Alternativeinvestmentfundmanagers(AIFMs) ►Creditintermediaries ►Creditinstitutions ►Electronicmoneyinstitutions ►Insurersandreinsurers ►Insuranceintermediaries ►Investmentfirms ►Paymentinstitutions ►UCITSmanagers Banking TheCRDIVDirectiveallowsEEAcreditinstitutionstocarryoutbankingservicesinotherEEAmemberstates,throughabranchoronacross-borderservicesbasis.CreditinstitutionsalsohavepassportrightsunderMiFIDII. Thefollowingservices,interalia,canbepassported: ►Takingdepositsandotherrepayablefunds ►Lending ►Financialleasing ►PaymentservicesunderthenewPaymentServicesDirectiveandissuingandadministeringothermeansofpayment ►Guaranteesandcommitments ►Tradingforownaccountorforaccountofcustomersinmoneymarketinstruments,foreignexchange,financialfuturesandoptions,transferablesecurities ►Participationinsecuritiesissuesandtheprovisionofservicesrelatedtosuchissues ►Advicetoundertakingsoncapitalstructure,industrialstrategyandrelatedquestionsandadviceaswellasservicesrelatingtomergersandtheacquisitionofundertakings ►Moneybroking ►Portfoliomanagementandadvice ►Safekeepingandadministrationofsecurities ►Creditreferenceservices ►Safecustodyservices ►Issuingelectronicmoney Financialservices InvestmentfirmsauthorisedinanEEAmemberstatecanprovidetheirservicesunderMiFIDIIinothermemberstates,eithercross-borderorthroughabranch. ItispossibletopassportanyinvestmentservicethatfallswithinthescopeofMiFIDII,butitisnotpossibletopassportanancillaryserviceunlessthatserviceisbeingofferedinconjunctionwithaninvestmentservice. Insurance TheSolvencyIIregimeenablesfirmsauthorisedinoneEEAstatetoconductbusinessinanotherEEAstate,underasinglelicence.Thisbusinesscanbeconductedeitherbyestablishingabranchorwritingbusinessona‘freedomofservices’basisfromthehomememberstate. SomeEUmemberstateshaveadoptedspecificlegalprovisionstoprotectthegeneralgood,insofarastheydonotundulyrestricttherightofestablishmentorthefreedomtoprovideservices.Thesegeneralgoodrequirementsdifferamongstmemberstates. AntoniouMcCollum&CoLLC- AnastasiosAAntoniouandChristinaMcCollum  Back Forward Save&file Vieworiginal Forward Print ShareFacebookTwitterLinkedIn Follow Pleaselogintofollowcontent. Like Instruct addtofolder: Mysaved(default) Readlater Folderssharedwithyou Filedunder EuropeanUnion Global Banking CapitalMarkets Insurance AntoniouMcCollum&CoLLC Laws MiFID SolvencyIIDirective(2009/138/EU) Populararticlesfromthisfirm IdentifyingtheLeadDataProtectionAuthorityundertheGDPR * Datasubjects’rightsundertheGDPR * Lawinthemetaverse * NewrulesonthesupplyofdigitalcontentanddigitalservicesinCyprus * Cross-bordermergersinvolvingCypruscompaniesintheEEA * IfyouwouldliketolearnhowLexologycandriveyourcontentmarketingstrategyforward,pleaseemail[email protected]. 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