Template:Nutshell MiFID 2 39

Article 39 Establishment of a branch

1. A Member State may require that a third-country firm intending to provide investment services to clients in its territory establish a branch in that Member State.

2. In such a case, the branch must have the necessary regulatory authorisation in that Member State on the following conditions:

(a) The third-country firm is appropriately regulated for the services in question in its own jurisdiction, and its local regulator has AML rules consistent with FATF recommendations;

(b) the third-country firm’s home regulator co-operates and shares information with competent authorities in the relevant Member State;

(c) sufficient initial capital is at free disposal of the branch;

(d) there is a responsible manager of the branch who complies with the requirement of Article 9(1);

(e) :the third-country firm’s home jurisdiction shares necessary tax information with the relevant Member State in compliance with Article 26 of the OECD Model Tax Convention on Income and on Capital ;

(f) the third-country firm belongs to an investor-compensation scheme recognised under the Investor Compensation Schemes Directive (97/9/EC (EUR Lex)).

3. The third-country firm applies to the competent authority in the relevant Member State.