(1) A third country firm with an EEA branch is not to be regarded as carrying on a regulated activity if it carries on the activity in the course of exercising rights under Article 47.3 (equivalence decision) of the markets in financial instruments regulation.
(2) But paragraph (1) only applies once the third country firm with an EEA branch satisfies the service conditions for incoming EEA investment firms.
(3) The service conditions for incoming EEA investment firms apply to a third country firm for the purposes of paragraph (1) with the modifications set out in paragraphs (4) and (5).
(4) A reference to the home state regulator has effect as if in each place it were a reference to the competent authority of the EEA State in which the relevant branch of the third country firm with an EEA branch is established ("supervising EEA competent authority").
(5) In paragraph 14(1)(b) [Paragraph 14(1)(b) was amended by S.I. 2003/1473, paragraph 3(2) of Schedule 4 to the Financial Services