Schedule 6: Gibraltar-based persons carrying on regulated activities in the UK Part 2: Approved activities
The GAR will be based on the concept of "approved activity" whereby Gibraltar-based persons will only be able to carry on a regulated activity under Schedule 2A if the activity is approved by HM Treasury. This Part is fundamental to the GAR in defining an approved activity and defining the circumstances in which HM Treasury may approve an activity for market access. Paragraph 5, sub-paragraph (1) confers a power on HM Treasury to designate by regulations a regulated activity as an "approved activity" under the new Schedule 2A, thus enabling a Gibraltar-based person to carry on this activity in the UK.
	Sub-paragraph (2) of paragraph 5 clarifies the scope of the delegated power and provides that, when approving a regulated activity, HM Treasury may approve a regulated activity only to the extent that it is carried on by types of persons specified in the regulations or subject to other limitations. Sub-paragraph (3) recognises that, when making regulations, HM Treasury may take account of any matter it considers relevant, subject to the restrictions included in subsequent paragraphs in respect of objectives (paragraph 7), alignment of law and practice (paragraph 8), cooperation (paragraph 9), and the consultation requirement in paragraph 10.
	The GAR will enable Gibraltar-based persons to carry on an approved activity only if and to the extent that, among other things, the person has permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar (paragraph 13(1)(c)). As a consequence, paragraph 6 requires HM Treasury to show how each approved activity in the new Schedule 2A matches a corresponding activity regulated in Gibraltarian law. The purpose of designating corresponding activities in Gibraltar is to ensure that Gibraltar-based persons carrying on a particular activity in the UK also meet similar requirements in their domestic jurisdiction. Sub-paragraphs (2) and (3) of paragraph 6 make similar provision to sub-paragraph (2) and (3) of paragraph 5. Sub-paragraph (2) clarifies the scope of the delegated power. Sub-paragraph (3) gives HM Treasury discretion in deciding what to take into account when designating corresponding activities subject to the restrictions in paragraphs 7 and 8 and the consultation requirement in paragraph 10.
	Paragraph 7 imposes a restriction on HM Treasury whereby it may not approve a regulated activity under paragraph 5 or a corresponding activity under paragraph 6, unless it is satisfied that doing so is compatible with certain objectives. Sub-paragraph (2) defines the concepts of consumers, financial crime, public funds and relevant markets, which are all relevant to the list of objectives.
	Before an activity is approved or identified as a corresponding activity, paragraph 8 places a restriction on HM Treasury that it should be satisfied that the relevant law and practice of Gibraltar in respect of that activity is sufficiently aligned with that of the UK, whilst also taking into account the objectives under paragraph 7. Sub-paragraph (2) offers a definition of the relevant law and practice. Sub-paragraph (3) provides that alignment is to include the effect of law and practice as well as the alignment of the text of law and of the documents relating to practice.
	Paragraph 9 places a restriction on the discretion of HM Treasury to approve activities under paragraph 5, providing that HM Treasury should be satisfied that there is or will be in the future adequate cooperation between the relevant UK and Gibraltar entities. Sub-paragraphs (2) and (3) define what is meant for UK and Gibraltar entities. Sub-paragraph (4) provides a list of criteria that HM Treasury must have regard to in assessing whether adequate cooperation for the purposes of Schedule 2A to FSMA exists. These criteria encompass formal and informal arrangement for cooperation among UK and Gibraltar entities, including for the provision and verification of information to be provided by Gibraltar entities to UK entities, as well as a catch-all provision that HM Treasury have regard to any other matter that they consider relevant.
	Paragraph 10 places a duty on HM Treasury to consult the FCA and the PRA (if PRA-regulated activities are involved) and the government of Gibraltar before designating a regulated activity as an approved activity under paragraph 5 and identifying the corresponding activity under paragraph 6.
	Paragraph 11 clarifies that HM Treasury may withdraw the approval of a regulated activity under paragraph 5 even if it is satisfied that the approval continues to be compatible with the conditions of the objectives in paragraph 7, alignment in paragraph 8, and cooperation in paragraph 9. Similarly, sub-paragraph (2) clarifies that HM Treasury may revoke a corresponding activity (whether by amending or revoking regulations made under paragraph 6) even if it is satisfied that the identification of a corresponding activity continues to be compatible with the objectives in paragraph 7 and the alignment condition in paragraph 8 continues to be met.