(1) Except where paragraph (3) applies, an authorised person who immediately before 1st November 2007 -
(a) is an investment firm within the meaning given in Article 4.1.1 of the markets in financial instruments directive,
(b) has his relevant office in the United Kingdom, and
(c) fulfils all the requirements set out in regulation 4C(3),
becomes an exempt investment firm with effect from that day as if he had applied as mentioned in regulation 4A(2) for a variation of his Part IV permission to permit him to carry on regulated activities as an exempt investment firm and the Authority had so varied the permission on that day.
(2) In paragraph (1) "relevant office" has the meaning given in regulation 4A(5).
(3) This paragraph applies -
(a) to an authorised person having a Part IV permission that, immediately before 1st November 2007 -
(i) includes no requirement having the effect of prohibiting the person from holding clients’ funds, or
(ii) permits the person, in connection with t