(1) Where an investment firm or credit institution, as the case may be, that has its head office established in a state, other than a Member State or an EEA state, establishes a third country branch in the State, the competent authority shall check that -
(a) the protections in that other state, in respect of the investment business of the firm or institution concerned are at least equivalent to those provided for in the Investor Compensation Directive, and
(b) eligible investors, who have entrusted money or instruments to the third country branch in connection with investment business, benefit from cover equivalent to that provided for in the Investor Compensation Directive.
(2) Where the protections or benefits referred to in subsection (1) are not at least equivalent to those provided for in the Investor Compensation Directive, the competent authority shall require that the firm or institution concerned prior to offering the services referred to in subsection (1) in the State -
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