(1) Paragraph 19 of Schedule 3 to the Act (exercise of passport rights by UK firms to establish a branch) is amended as follows.
(2) At the beginning of sub-paragraph (1), insert "Subject to sub-paragraph (5A),".
(3) For sub-paragraph (5), substitute -
"(5) The third is -
(a) if the EEA right in question derives from the insurance mediation directive, that one month has elapsed beginning with the date on which the firm received notice, in accordance with sub-paragraph (11), that the Authority has given a consent notice;
(b) in any other case, that either -
(i) the host state regulator has notified the firm (or, where the EEA right in question derives from any of the insurance directives, the Authority) of the applicable provisions; or
(ii) two months have elapsed beginning with the date on which the Authority gave the consent notice.".
(4) After sub-paragraph (5), insert -
"(5A) If -
(a) the EEA right in question derives from the insurance mediation directive, and
(b) the EEA Stat