Schedule 6: Gibraltar-based persons carrying on regulated activities in the UK Part 9: Transition on withdrawal of approval of regulated activity Transition on withdrawal of approval of regulated activity
Paragraph 58 sets out the transitional arrangements that will apply to Gibraltar-based persons with a Schedule 2A permission in the event that HM Treasury withdraws the approval of a regulated activity.
	Sub-paragraph (1) explains that the transitional arrangements will only apply to a Gibraltar-based person who was carrying on an activity immediately before HM Treasury withdraws approval, thus setting out the scope of those to benefit from the arrangements.
	Following on from this, sub-paragraph (2) sets out how, once approval has been withdrawn, regulated activities will be treated as approved for a limited period of time of a duration to be specified by HM Treasury if they continue to be carried on by the same Gibraltar-based person. These arrangements will minimise economic disruption and legal risks emerging from the withdrawal of permissions and enable Gibraltar-based persons to seek other permissions or exit the market in an orderly fashion. HM Treasury will have the flexibility to adapt the duration of the temporary arrangements to the types of persons affected. Sub-paragraph (2) also provides that, if the UK regulators impose a restriction under paragraph 60, the regulated activity is treated as approved subject to that restriction.
	An activity ceases to be treated as temporarily approved if any of the events detailed at sub-paragraph (4) occur before the expiry of the period specified by HM Treasury, which are:
if the Gibraltar-based person ceases to carry on that activity in the UK;
if the Gibraltar-based person ceases to have permission from the Gibraltar regulator to carry on the corresponding activity in Gibraltar;
if the Gibraltar-based person ceases to have Schedule 2A permission in respect of that activity;
if the Gibraltar-based person is granted Part 4A permission under FSMA, that is, they successfully secure domestic authorisation from the UK regulators; or
if HM Treasury approves again the activity in question under Schedule 2A.
	Sub-paragraphs (5) and (6) provide that any limitations applicable to the approved activities before or at the time the approval is withdrawn will also apply to the activities treated as approved under the transitional arrangements. Sub-paragraph (7) clarifies that a Gibraltar-based person does not cease to have permission in relation to an activity under sub-paragraph (4)(b) and (c) while the person is in a transitional arrangement under Part 10.