Part 2: UK Market Access: Services UK Market Access: Services Section 21: Indirect discrimination in the regulation of services
This section sets out provisions for indirect discrimination in the regulation of services.
	Subsection (1) sets out that any regulatory requirement that indirectly discriminates against an incoming service provider will be of no effect in relation to that incoming service provider.
	Subsection (2) provides the test for when a regulatory requirement will indirectly discriminate against an incoming service provider for the purposes of section 21. A requirement will indirectly discriminate if:
it does not directly discriminate against the incoming service provider (section 20);
it puts the incoming service provider at a relevant disadvantage;
it has an adverse market effect; and
it cannot be reasonably considered a necessary means of achieving a legitimate aim.
	Subsection (3) provides for the purposes of subsection (2), what constitutes a relevant disadvantage towards an incoming service provider. This is if it puts an incoming service provider at a disadvantage in the part of the UK in which the requirement applies but does not put local service providers at the same disadvantage.
	Subsection (4) provides what constitutes a disadvantage for subsection (3). A disadvantage will make it in any way more difficult, or less attractive, for the service provider to provide services in that part of the UK.
	Subsection (5) sets out the meaning of adverse market effect is for the purpose of the test for indirect discrimination under subsection (2). A requirement will have an adverse market effect if it puts an incoming service provider at a relevant disadvantage, and it causes a significant adverse effect on competition in the market for the particular service in the UK.
	Subsection (6) sets out the meaning of "incoming service provider," "local service provider" and "relevant connection" for the purposes of section 21.
	Subsection (6)(a) sets out that an "incoming service provider" provides services in the part of the UK in which the regulatory requirement applies but does not have a relevant connection to that part of the UK.
	Subsection (6)(b) sets out that a "local service provider" provides services in the part of the UK where the regulatory requirement applies, has a relevant connection to that part of the UK, and does not have a relevant connection to another part of the UK.
	Subsection (6)(c) sets the circumstances under which a services provider is considered to have a "relevant connection" to a part of the UK, for the purposes of section 21. These are that it either has:
a registered office, place of business or residence in that part of the UK; or
that it provides services from that part of the UK.
	Subsection (7) provides a list of public policy objectives that could be considered a "legitimate aim" for the purposes of the test for indirect discrimination in subsection (2). These are the protection of the life or health of humans, animals or plants, the protection of public safety or security and the efficient administration of justice.
	Subsection (8) contains a power enabling the Secretary of State by regulations to add to, remove from or vary the list of legitimate aims in subsection (7). Subsection (9) states that regulations are subject to the affirmative resolution procedure.
	Subsections (10), (11) and (12) set out that, before making any regulations under subsection (8), the Secretary of State must seek the consent of the devolved administrations. However, if consent is not provided within one month of it being requested, the Secretary of State can proceed to use the power without consent. Before exercising the power in the absence of consent, the Secretary of State must first publish a statement explaining why they have proceeded to use the power.
	Subsection (13) provides that, in considering whether a regulatory requirement can be reasonably considered a necessary means to achieving a legitimate aim under subsection (2)(d), particular consideration has to be given to the effects of the requirement in all circumstances, and to the availability of alternative means of achieving that aim.