Establishment of a branch - MiFID 2 Provision
MiFID 2 Anatomy™
1. A Member State may require that a third-country firm intending to provide investment services to clients[1] in its territory establishes a branch in that Member State. 2. If so, the branch must have the necessary regulatory authorisation in the relevant Member State including:
3. The third-country firm applies to the competent authority in the relevant Member State.
view template 1. A Member State may require that a third-country firm intending to provide investment services or perform investment activities with or without any ancillary services to retail clients or to professional clients within the meaning of Section II of Annex II in its territory establish a branch in that Member State. 2. Where a Member State requires that a third-country firm intending to provide investment services or to perform investment activities with or without any ancillary services in its territory establish a branch, the branch shall acquire a prior authorisation by the competent authorities of that Member State in accordance with the following conditions:
(e) :the third country where the third-country firm is established has signed an agreement with the Member State where the branch is to be established, which fully comply with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including, if any, multilateral tax agreements;
3. The third-country firm referred to in paragraph 1 shall submit its application to the competent authority of the Member State where it intends to establish a branch.
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This is the basic premise for third-country firms under MiFID 2 — being those who don't have the vaunted EU passport, such as all UK firms from April 2019. Useful when read in conjunction with 42 about reverse inquiry.
References
- ↑ Strictly, retail clients or professional clients. Therefore ECPs are out of scope?
- ↑ The original sentence is a horror-show — this is a best guess at summarising it