85.So long as an EEA firm retains its home State authorisation, the Authority may not remove the firm’s authorisation under Schedule 3.  Such a person will only cease to qualify for authorisation under Schedule 3 if their home State regulator, that is the competent authority under the relevant directive from the person’s home State, notifies the Authority that it is withdrawing authorisation for the person to continue to carry on the regulated activities in the United Kingdom, which may or may not be as part of withdrawing the person’s authorisation completely, including in the home State.
86.However, if the person has also obtained a permission under Part IV, loss of the grounds for its authorisation under Schedule 3 does not necessarily lead to loss of its authorisation unless the Authority decides that as a result of the changed circumstances it should also withdraw the permission granted by it under Part IV.  The Authority may also cancel an authorisation under Schedule 3 if it is requested to do so by the EEA firm.
Commentary on Sections Part Iii: Authorisation and Exemption Section 34: EEA firms