From ACT Wiki
European Economic Area (EEA) - financial services and other commercial activities
Passporting is the right of financial services firms in the EEA to carry on permitted activities in other EEA states.
Notification to - and approval by - the regulator are required for both inward and outward passporting.
Equivalence and passporting
- "In brief, equivalence is the willingness of one regulator to accept that another regulator's rules achieve the same regulatory outcomes as their own, and so some element of cross-border activity can be allowed.
- Equivalence must be agreed, but is subject to negotiation, market by market.
- Passporting is the acceptance that once permitted to trade in one state, a business can trade in another without further compliance requirements.
- For those within the European Economic Area (EEA), it is easy to forget that the principle of passporting applies beyond the much publicised world of financial services (FS)."
- The Treasurer magazine, March 2017, p12 - Technical briefing.