EU passporting
- To do business in another country generally requires meeting the requirements of that country. This is especially true if the business requires permits or other requirements to operate.
- In some areas of the economy throughout the European Economic Area, it is possible to operate on the basis of permits, registrations, approvals obtained in one of the Member States (the so-called European passport). The passport is used in the case of most financial services – by banks, payment institutions, electronic money institutions, and account information access-only providers. The passport may not be used by small payment institutions (SPIs), payment service bureaus and entities operating under exemptions.
- The activities in the host market are carried out either as a cross-border activity (freedom to provide services) or through a branch. Some regulations distinguish business by an agent.
- In practice, the use of the passport means that a supplier planning foreign expansion notifies the regulator of their intention to commence such activities. The authority will then send the notification to the competent supervisory authority of the host Member State.
- The complexity of the passport procedure depends on the type of services and the chosen method of doing business in the host Member State. The passport proceedings are purely formal and should not include any examination of substantive issues. Therefore, the passport proceedings are usually quick and uncomplicated.
See also:
Licensing of betting shops
bookmaking activity, authorization to arrange bets
Licensing of betting shopsLicensing: pool betting
Licensing: pool bettingLicensing of financial institutions
banks, payment institutions, e-money, lending, crowdfunding, PSD2 service providers, crypto publishers and service providers, intermediaries, agents, insourcers
Licensing of financial institutions