Part 3: Access to Financial Services Markets Section 22: Regulated activities and Gibraltar
This section amends Part 3 of FSMA to reflect the new authorisation regime for Gibraltar-based persons wishing to operate in the UK and makes provision for outbound UK-based persons wishing to operate in Gibraltar.
	Section 31 of FSMA sets out the categories of persons who are authorised persons for that Act. Subsection (2) of this section inserts a new paragraph into section 31(1) of FSMA providing that a Gibraltar-based person with a Schedule 2A permission to carry on one or more regulated activities is an authorised person for the purposes of that Act.
	Subsection (3) inserts a new section 32A after section 32 of FSMA. Section 32A provides that HM Treasury must carry out a review of the operation of Schedule 2A, within two years of the Financial Services Act having come into force and then within each subsequent reporting period of two years. The review will address in particular the continued fulfilment in the reporting period of the three conditions for the access of Gibraltar-based persons to the UK financial markets: the objectives set out in paragraph 7; the alignment of law and practice enshrined in paragraph 8, and cooperation in paragraph 9. HM Treasury will be under a duty to consult the FCA and PRA during the preparation of this report. Upon completion of the review, the relevant Minister must lay a copy of the report before Parliament.
	Subsection (4) of this section inserts a new section 36A into FSMA to make provision for new Schedule 2B in relation to the carrying on by UK-based persons of activities in Gibraltar. While the right to carry on these activities in Gibraltar will be subject to the law of Gibraltar, Schedule 2B provides for the conditions that UK-based persons must meet under UK law in order to carry on activities in Gibraltar.
	Subsections (5) to (7) insert Schedules 6 to 8. Schedule 6 inserts Schedule 2A to FSMA and Schedule 7 inserts Schedule 2B to FSMA. Schedule 8 to this Act contains minor and consequential amendments.
	Subsections (8) to (10) confer a power on HM Treasury to amend Parts 7 and 18A of FSMA and make further provision in other enactments as regards EEA firms that are Gibraltar-based persons. This is in addition to the general power under the Act to make consequential amendments, and it ensures that the relevant legislation continues to operate effectively in relation to cases involving a Gibraltar-based person and that the relevant provisions are consistent with the new regime.
	Subsection (11) defines the concept of a "Gibraltar-based person" to be given the same meaning as in Schedule 2A.