(1) For the purposes of Regulation 7, an investment firm shall not be regarded as operating in the State if the firm has no branch in the State and -
(a) the firm's head or registered office is -
(i) in a state other than a Member State, or
(ii) in a Member State outside the State and the firm does not provide any investment services in respect of which it is required to be authorised in its home Member State for the purposes of the Directive, or
(b) the firm is authorised in a Member State outside the State, under the Directive, but provides only investment services of a kind for which authorisation under the Directive is not available during the provision of the investment services.
(2) Notwithstanding paragraph (1), an investment firm, for the purposes of Regulation 7, shall be regarded as operating within the State if the firm provides investment services to individuals in the State who do not themselves provide one or more investment services on a professional basis.