(1) The appropriate regulator must not give a Part 4A permission to an applicant who is an investment firm unless it is satisfied that the applicant complies with -
(a) the provisions contained in or made under the Act implementing Chapter I of Title II of the markets in financial instruments directive; and
(b) any directly applicable Community regulation made under that Chapter.
(2) Paragraph (1) also applies if an authorised person becomes an investment firm by virtue of a variation of his Part 4A permission.
(3) "Investment firm" has the meaning given in section 424A of the Act [Section 424A was inserted by S.I. 2006/2975.].