Schedule 6: Gibraltar-based persons carrying on regulated activities in the UK Part 3: Permission to carry on an approved activity
The GAR will introduce a notification process which Gibraltar-based person will be required to follow in order to obtain permission to carry on an approved activity under the GAR. As a result, paragraph 12 provides that a Gibraltar-based person will automatically obtain a Schedule 2A permission to carry on an approved activity in the UK once the Gibraltar regulator notifies the appropriate UK regulator of the person’s intention and the period to consider the notification by the UK regulator has expired. However, sub-paragraph (2) explains that a Gibraltar-based person will not gain permission if the appropriate UK regulator rejects the notification under a circumstance contemplated in paragraph 17 of Part 3 or if the Gibraltar regulator withdraws the notification. Sub-paragraphs (3) and (4) are self-explanatory.
	Paragraph 13 sets out the scope of a Schedule 2A permission: a Gibraltar-based person has a Schedule 2A permission to carry on an approved activity only if and to the extent that it is authorised by the Gibraltar regulator to carry on the corresponding activity in Gibraltar. A Schedule 2A permission is also subject to the limitations and restrictions described in sub-paragraph (2) and (3). If market access for an activity is withdrawn by HM Treasury or a permission cancelled by the UK or Gibraltar regulators, transitional arrangements under Part 9 and 10 will restrict what a Gibraltar-based person can do in the UK, for example, by limiting a person to the performance of protected contracts only. Therefore, a permission under the transitional arrangements is subject to the restrictions set out in Parts 9 and 10.
	Paragraph 14 sets out the cases in which the FCA or PRA is the appropriate regulator to consider a notification.
	Paragraph 15, sub-paragraph (1) sets out the required contents of a notification. Sub-paragraph (2) provides that a notification may relate to more than one approved activity. Sub-paragraph (3) provides that HM Treasury may modify the list of items in sub-paragraph (1) by regulations, although subject to the limitation in sub-paragraph (4). As per sub-paragraph (5), HM Treasury must consult the UK regulators and the government of Gibraltar before modifying the contents of a Schedule 2A notification. Sub-paragraph (6) defines what managing the affairs of a Gibraltar-based person encompasses.
	Paragraph 16 sets out the process that the appropriate UK regulator should follow when considering a notification sent by the Gibraltar regulator in relation to market access. A notification must be acknowledged without delay, and the UK regulator has a period of time to consider the notification. Sub-paragraph (2) provides that the period is two months if the Gibraltar-based person wants to operate through a UK branch; 1 month in other cases. A UK regulator may confirm market access by issuing a confirmation notice before the consideration period has come to an end, as per sub-paragraph (3). The confirmation notice will be issued by the UK regulator to the Gibraltar-based person to act as an expedited procedure to obtain a Schedule 2A permission. Sub-paragraphs (4) and (5) are self-explanatory.
	Paragraph 17, sub-paragraph (1) prohibits the UK regulators from rejecting a notification, unless they must do so under any of the circumstances set out in paragraph 18 or unless they can do so under paragraphs 19 or 20. Sub-paragraph (2) explains that a notification is rejected when the UK regulator notifies the Gibraltar regulator of this fact. The Gibraltar regulator may send future notices relating to the person and an activity which has previously been turned down.
	Paragraph 18 imposes a duty on the UK regulators to reject a notification:
if the notification does not comply with the requirements in paragraph 15;
if the activity has ceased to be approved under Schedule 2A; or
if the Gibraltar-based person does not have permission to carry on the corresponding activity in Gibraltar.
	Paragraph 19, sub-paragraph (1) enables the UK regulators to reject a notification if a senior manager of the Gibraltar-based person is prohibited from performing a function by a prohibition order under section 56 or 143S of FSMA or equivalent order under the law of Gibraltar. Sub-paragraph (2) defines the concepts of managing the person’s affairs, prohibition order and senior management function for the purposes of rejecting a notification.
	Paragraph 20 enables the UK regulators to reject a notification if the Gibraltar-based person has lost a ‘relevant access right’ to carry on regulated activities at any time and the person poses a serious threat to the interests of consumers or the UK financial system. By extension, sub-paragraph (2) enables the UK regulators to reject a notification if (i) the Gibraltar-based person in question is a member of the same group as a person that has lost a relevant access right, or has close links to a person that has lost relevant market access right at any time and (ii) due to that relationship, the Gibraltar-based person poses a serious threat to the interests of consumers or the UK financial system. Sub-paragraph (3) defines the loss of a relevant access right: this is to be understood as the cancellation of a Part 4A permission (the domestic financial services authorisation), a Schedule 2A permission or authorisation under Schedule 3 (a passporting permission previously available to EEA firms) (other than by virtue of the repeal of Schedule 3). Sub-paragraph (4) places a duty on the UK regulators to consider the reasons why a person lost the relevant access right before rejecting a notification.