Passporting is a term for having an operational licence that... More is a term for having an operational licence that is valid across the European Economic Area.
A company or institution that wishes to benefit from EU passporting rights must notify the regulator and state responsible, whether they want to set up a new branch or solely provide services to specific states.
With passporting rights, a firm is allowed to conduct business in the European Economic Area under a single What are value stocks? A value company is a company that app... More directive.
Relevant directives include:
- Markets and Financial Instruments Directive (Investment is the commitment of money or capital to purchase... More Firms)
- Banking Directive (Credit and Financial Institutions)
- Insurance Mediation Directive
- Payment Services Directive
- Electronic Money is a generally accepted medium of exchange to buy and... More Directive
In short: if ahas a passporting licence and is regulated, for example under CySEC, it can also provide services to the EEA member states without being specifically regulated in those states.