Access to Financial Services Markets Market access arrangements for financial services between the UK and Gibraltar Section 409 of FSMA regime under which Gibraltar firms and UK firms exercise deemed passport rights
Section 19 of FSMA prohibits the carrying on of regulated activities in the UK unless a person is an "authorised person" or is exempt. Normally, permission is granted by the FCA or the PRA under Part 4A of FSMA. Section 31(1) of FSMA lists other routes to authorised person status. While the UK was a member of the EU, and during the Transition Period, this included a route for EEA firms qualifying for authorisation under Schedule 3. This route has now been removed following the end of the Transition Period.
	The EU passporting rights that Schedule 3 provided for did not apply between the UK and Gibraltar. To accommodate Gibraltar’s unique situation, provision was made in FSMA in the form of section 409 to deal with matters concerning Gibraltar’s status within the EEA.
	The Gibraltar Order was subsequently made under the powers conferred on HM Treasury by section 409(1) and section 428(3) of FSMA. It allows certain types of authorised firms in Gibraltar to passport into the UK, as well as allowing the same types of authorised UK firms to passport into Gibraltar.