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Passporting definition
Passporting is the term used when a company within the European Economic Area (EEA) that undertakes activities in another EEA state without that state’s direct authorisation. Passporting is an established right for any EEA state, according to the Financial Services and Markets Act 2000 (FSMA 2000).
Passporting definition
Passporting is the term used when a company within the European Economic Area (EEA) that undertakes activities in another EEA state without that state’s direct authorisation. Passporting is an established right for any EEA state, according to the Financial Services and Markets Act 2000 (FSMA 2000).
The activities permitted under passporting are dependent on several different single market directives. Essentially, there are two different types of passporting which are available, as long as the company meets the conditions of the relevant directive:
- A ‘services’ passport allows firms in the EEA to offer services or advice in other EEA states without having to open a local branch
- A ‘branch’ or ‘establishment’ allows firms to set up a branch in any EEA state