Passporting
Regulatory Passporting
Definition
The mechanism that allows a financial services firm authorised in one EU/EEA member state to provide services or establish branches in other member states without needing separate authorisation. Passporting rights exist under various EU directives including MiFID II, CRD, UCITS, AIFMD, and Solvency II.
Regulatory Context
Brexit ended UK firms' EU passporting rights and vice versa, creating significant market access challenges. Firms have established EU subsidiaries or rely on equivalence decisions and national third-country regimes to continue cross-border activities.