(1) A ring-fenced body must not -

(a) maintain or establish a branch in any country or territory which is not the United Kingdom or an EEA member state, or

(b) subject to paragraph (2), have a participating interest in any undertaking which is incorporated in or formed under the law of a country or territory which is not the United Kingdom or the United Kingdom or an EEA member state (a "non-UK and non-EEA undertaking").

(2) A ring-fenced body may, subject to rules made by the PRA under the Act, have a participating interest in a  non-UK and non-EEA undertaking which is an ancillary services undertaking within the meaning of article 4.18 of the prudential requirements regulation, if that undertaking does not carry on any activities that would be regulated activities under the Act if carried on in the United Kingdom.

(3) For the purposes of this article -

(a) "branch" means a place of business that forms a legally dependent part of the ring-fenced body and conducts directly all or some of the operations inherent in its business;