1. The Act is further amended as follows.
Amendment of section 39
2. In section 39 (exemption of appointed representatives) -
(a) after subsection (1) insert -
"(1A) But a person is not exempt as a result of subsection (1) -
(a) if his principal is an investment firm or a credit institution, and
(b) so far as the business for which his principal has accepted responsibility is investment services business,
unless he is entered on the applicable register.
(1B) The "applicable register" is -
(a) in the case of a person established in an EEA State (other than the United Kingdom) which permits investment firms authorised by the competent authority of that State to appoint tied agents, the register of tied agents maintained in that State pursuant to Article 23 of the markets in financial instruments directive;
(b) in the case of a person established in an EEA State which does not permit investment firms authorised as mentioned in paragraph (a) to appoint tied agents -