Textual Amendments
F1Sch. 2A inserted (1.9.2023 for specified purposes) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 6 (as amended (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 100(3)(b)); S.I. 2023/934, reg. 2(a)
21(1)A Schedule 2A permission may be varied in accordance with this Part of this Schedule—U.K.
(a)on the initiative of the Gibraltar regulator (see paragraphs 22 to 26), or
(b)on the initiative of a UK regulator (see paragraphs 27 to 30).
(2)References in this Part of this Schedule to the variation of a Schedule 2A permission (however expressed) are to its variation by—
(a)adding an approved activity to those to which the permission relates,
(b)removing an approved activity from those to which the permission relates, or
(c)varying the description of an activity to which the permission relates (including by adding, removing or varying a limitation).
(3)Where a limitation is added, removed or varied under this Part of this Schedule, paragraph 13(2)(b) has effect as if it referred to the limitations (if any) that have effect after that change.
22(1)If the appropriate UK regulator receives a notification from the Gibraltar regulator requesting the variation of a Gibraltar-based person's Schedule 2A permission (see paragraph 24), the permission is varied—U.K.
(a)if the notification specifies a time for the variation to take effect which falls after the end of the period for considering the notification as it relates to the variation (see paragraph 25), at that time, or
(b)otherwise, at the end of the period for considering the notification, as it relates to the variation.
(2)A variation requested in a notification does not take effect under sub-paragraph (1) if, during the period for considering the notification—
(a)the appropriate UK regulator rejects the notification, as it relates to the variation (see paragraph 26), or
(b)the Gibraltar regulator withdraws the notification, as it relates to the variation.
(3)References in this Part of this Schedule to a notification are references to a notification for the purposes of this paragraph.
23U.K.In relation to a notification, “the appropriate UK regulator” means—
(a)the PRA, in a case where the approved activities to which the notification relates consist of or include PRA-regulated activities, and
(b)the FCA, in any other case.
24(1)A notification must—U.K.
(a)state the desired variation,
(b)specify the approved activity or approved activities which the Gibraltar-based person wants to carry on following the variation, including any limitations,
(c)specify the corresponding activity, including any restrictions,
(d)state that the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar,
(e)state that the Gibraltar regulator consents to the variation, and
(f)contain, or be accompanied by, any further information specified in a direction given by the appropriate UK regulator under paragraph 57 and in force when the notification is given.
(2)A notification may state when the desired variation is to have effect.
(3)A notification may relate to more than one variation.
25(1)Where the appropriate UK regulator receives a notification, it must acknowledge receipt in writing without delay.U.K.
(2)The period for considering a notification is—
(a)so far as it relates to a variation in respect of an activity carried on through a branch in the United Kingdom, the period of two months beginning with the day on which the appropriate UK regulator receives the notification, and
(b)so far as it relates to any other variation, the period of one month beginning with that day.
(3)If, before the end of the period described in sub-paragraph (2), the appropriate UK regulator gives the Gibraltar-based person a confirmation notice in respect of a variation specified in the notification, then the period for considering the notification as it relates to the variation ends when the notice is given.
(4)A “confirmation notice” is a written notice confirming that the variation has effect as specified in the notification.
(5)A confirmation notice may relate to more than one variation.
26(1)The appropriate UK regulator may not reject a notification unless—U.K.
(a)it is required to do so under sub-paragraph (3) or (4), or
(b)it has power to do under sub-paragraph (5).
(2)A notification is rejected when the appropriate UK regulator gives a written notice of the rejection to the Gibraltar regulator.
(3)The appropriate UK regulator must reject a notification if satisfied that the notification does not satisfy one or more of the requirements in paragraph 24(1).
(4)The appropriate UK regulator must reject a notification if it would be required to do so by paragraph 18(2) or (3) if the notification were a notification under Part 3 of this Schedule relating to—
(a)the Gibraltar-based person, and
(b)the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.
(5)The appropriate UK regulator may reject a notification if it would have power to do so under paragraph 19 or 20 if the notification were a notification under Part 3 of this Schedule relating to—
(a)the Gibraltar-based person, and
(b)the activities that the person would have a Schedule 2A permission to carry on if the permission were varied as specified in the notification.
(6)The rejection of a notification does not prevent the Gibraltar regulator from giving a further notification.
27(1)A UK regulator may exercise a power under this paragraph in relation to a Gibraltar-based person with a Schedule 2A permission where one of the own-initiative conditions is satisfied (see paragraph 28).U.K.
(2)The FCA may vary a Schedule 2A permission.
(3)The PRA may vary a PRA-authorised person's Schedule 2A permission.
(4)In the case of a person who is not a PRA-authorised person, the PRA may vary the person's Schedule 2A permission by adding an approved activity that is a PRA-regulated activity to those to which the permission relates.
(5)Where it adds an approved activity under sub-paragraph (4), the PRA may vary the person's Schedule 2A permission in any of the other ways described in paragraph 21(2).
28(1)For the purposes of this Schedule, “the own-initiative conditions” are—U.K.
(a)in relation to the exercise of a power by the FCA, conditions A to C, and
(b)in relation to the exercise of a power by the PRA, conditions A to D.
(2)Condition A is that the UK regulator in question considers that—
(a)it is desirable to exercise the power in order to advance one or more of its objectives, and
(b)the Gibraltar regulator—
(i)is aware, or ought reasonably to be aware, of the reasons why the UK regulator considers that to be the case, and
(ii)has had time to take steps, or indicate what steps (if any) it is likely to take, in response.
(3)Condition B is that the UK regulator in question considers that—
(a)it is desirable to exercise the power in order to advance one or more of its objectives, and
(b)a delay in exercising the power would be materially detrimental to—
(i)the interests of consumers (as defined in section 1G), or
(ii)the soundness, stability and resilience of the UK financial system or a part of that system.
(4)Condition C is that the UK regulator in question considers that—
(a)the Gibraltar-based person is contravening, or has contravened, a rule made by the UK regulator or a requirement imposed on it by the UK regulator under Part 6 of this Schedule, and
(b)the contravention is not minor, having regard to the nature of the contravention or its consequences (or both).
(5)Condition D is that the PRA considers that—
(a)it is desirable to exercise the power in order to advance one or more of the PRA's objectives, and
(b)the Gibraltar-based person poses, or may pose, a risk to the soundness, stability and resilience of the UK financial system, or a part of that system, of a type specified for the purposes of this condition in the policy statement produced by the PRA under paragraph 71.
(6)In the case of the FCA, references in this paragraph to its objectives are references only to its operational objectives.
29(1)The variation of a Schedule 2A permission under paragraph 27 takes effect—U.K.
(a)immediately, if the notice given under sub-paragraph (3) states that is the case,
(b)on such date as may be specified in the notice, or
(c)if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
(2)The variation of a Schedule 2A permission under paragraph 27 may be expressed to take effect immediately, or on a specified date, only if the UK regulator reasonably considers that it is necessary for the variation to take effect immediately or on that date, having regard to the own-initiative condition on which it is relying for the purposes of paragraph 27(1).
(3)If a UK regulator—
(a)proposes to vary a Schedule 2A permission under paragraph 27, or
(b)varies a Schedule 2A permission under that paragraph with immediate effect,
it must give the Gibraltar-based person a written notice.
(4)The notice must—
(a)give details of the variation,
(b)state the UK regulator's reasons for varying the permission,
(c)inform the Gibraltar-based person that the person may make representations to the UK regulator within the period specified in the notice (whether or not the Gibraltar-based person has referred the matter to the Tribunal),
(d)inform the Gibraltar-based person of when the variation of the permission takes effect, and
(e)inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.
(5)The UK regulator may extend the period allowed under the notice for making representations.
(6)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—
(a)to vary the permission in the way proposed, or
(b)if the permission has been varied, not to rescind its variation,
it must give the Gibraltar-based person a written notice.
(7)A notice under sub-paragraph (6) must inform the Gibraltar-based person of the person's right to refer the matter to the Tribunal.
(8)If, having considered any representations made by the Gibraltar-based person, the UK regulator decides—
(a)not to vary the permission in the way proposed,
(b)to vary the permission in a different way, or
(c)to rescind the variation,
it must give the Gibraltar-based person a written notice.
(9)A notice under sub-paragraph (8)(b) must comply with sub-paragraph (4).
(10)If a notice under this paragraph informs a person of the person's right to refer a matter to the Tribunal, it must give an indication of the procedure for such a reference.
(11)For the purposes of sub-paragraph (1)(c), whether a matter is open to review is to be determined in accordance with section 391(8).
30U.K.A Gibraltar-based person who is aggrieved by the exercise by a UK regulator of a power under paragraph 27 in relation to the person may refer the matter to the Tribunal.]