Schedule 6: Gibraltar-based persons carrying on regulated activities in the UK Part 10: Transition on cancellation of UK or Gibraltar permission
Paragraph 64 sets out the transitional arrangements that will apply to a Gibraltar-based person in the event that their individual Schedule 2A permission is varied or cancelled, preventing them from carrying on a specified regulated activity. This section deals with instances where a UK regulator cancels or varies (by removing an activity) a Schedule 2A permission of an individual person, in contrast with a set of circumstances where HM Treasury has withdrawn access for an activity as a whole. Under these transitional arrangements, as set out in sub-paragraph (2), a person is automatically deemed to continue to have a Schedule 2A permission for a limited period of time and for limited purposes only in order to carry on activities in relation to the performance of a protected contract and/or one of the other purposes in sub-paragraph (3). Sub-paragraph (4) provides that, in relation to a person subject to an arrangement under Part 10 as a result of this paragraph, the UK regulators could exercise the power under paragraph 49(1) if satisfied that it is desirable to do so in order to advance one or more of their objectives. Sub-paragraph (5) provides that the regulators’ duty under section 33 of FSMA arises when the transitional arrangement comes to an end. Sub-paragraph (6) to (8) define key terms relevant to this paragraph
	Paragraph 65 sets out the transitional arrangements that will apply to a Gibraltar-based person in the event that their permission to carry on a corresponding activity in Gibraltar is cancelled by the Gibraltar regulator or that their permission is varied to remove such an activity. Under the new Schedule 2A, a person wishing to carry on in the UK an approved activity must have a permission to carry on the corresponding activity in Gibraltar. Sub-paragraph (2) provides for that Gibraltar-based person to continue to have a permission from the Gibraltar regulator to perform for a limited period of time any of the activities set out in sub-paragraph (3), including the performance of protected contracts and the transfer of protected contracts to authorised persons. Sub-paragraph (4) makes provision similar to sub-paragraph (4) of paragraph 64. Sub-paragraphs (5)–(7) make provisions similar to sub-paragraphs (6)–(8) of paragraph 64.
	Paragraph 66 defines who the appropriate UK regulator is for the purposes of exercising the functions under Part 10.
	Paragraph 67, sub-paragraph (1) confers on UK regulators a power to direct that a contract is a ‘protected contract’ under paragraph 64, 65 or both for the purposes of transitional arrangements following the cancellation of a Schedule 2A or Gibraltar permission. Sub-paragraph (2) provides for the UK regulators to be able to give a direction modifying the definition of ‘existing contract’ in paragraph 64 and 65. Sub-paragraphs (3) to (5) provide for procedural requirements connected with a direction under this paragraph.
	Paragraph 68 defines the circumstances after which the transitional arrangements come to an end. Under sub-paragraph (1), a transitional arrangement under Part 10 comes to an end when an event listed in sub-paragraph (2) occurs on or on an earlier date (if any) specified by the appropriate UK regulator for this purpose. Sub-paragraph (3) confers on the UK regulators power to extend the date.
	Sub-paragraph (4) defines the concept of "the regulated activity" in paragraph 67 as referring to both the Schedule 2A approved activity and the corresponding activity in Gibraltar. Sub-paragraph (5) clarifies the meaning of one of the events – under sub-paragraph (2)(c) – that brings the transitional arrangement under Part 10 to an earlier end.
	In the event that the UK regulators propose to set an end date for the transitional arrangements set out in Part 10, paragraph 69 directs the UK regulator to give an initial warning note and, when a decision is made, a subsequent decision notice to the relevant Gibraltar-based person.
	Paragraph 70 provides for a Gibraltar-based person to have the right to refer matters to the Upper Tribunal in respect of a decision notice from the UK regulators setting out the duration of the transitional arrangements under Part 10.