804.This paragraph implements the requirement under the Post-BCCI  Directive (Council Directive 95/26/EEC of 29 June 1995) that persons covered by the single market directive should have their head office in the country in which they have their registered office.  It requires authorised persons who are bodies corporate constituted under the law of any part of the United Kingdom, to have their head office (that is, the main centre from which the firm is run) in the United Kingdom.  If they have a registered office, as most bodies corporate do, it must also be in the United Kingdom.  If the person does not have a registered office (for instance if he is an individual or an unincorporated association) but his head office is in the United Kingdom, he must carry on authorisable business in the United Kingdom.  This requirement is aimed at ensuring that authorised persons organise their business in a way that can be effectively supervised.  A problem in the case of the failure of BCCI was that it was incorporated in one State, Luxembourg, but had its head office in another, the United Kingdom.
Schedule 6: Threshold Conditions Part I: Part IV Permission Paragraph 2: Location of offices