Subsection 2: Freedom of establishment and freedom to provide services within the territory of States party to the Agreement on the European Economic Area

Any financial institution having its registered office in France and wishing to set up a branch in another Member State in order to offer free banking services shall notify its project to the Autorité de contrôle prudentiel et de résolution, together with information of a nature determined by the Minister responsible for the economy.

The financial institution must also prove to the Autorité de contrôle prudentiel et de résolution that it meets the conditions set by the Minister for the Economy. These conditions relate to the activities carried out in France by these institutions, the methods by which they are placed under the control of credit institutions and the rules applicable to ensure the quality and control of their management as well as the guarantee of their commitments by the parent undertakings.

If the institution fulfils the conditions referred to in the previous paragraph, the Autorité de contrôle prudentiel et de résolution shall, unless it has reason to doubt the adequacy of the administrative structures or the financial situation of the financial institution in the light of the project, communicate the information concerning the project within three months of receiving it to the competent authority of the host Member State and notify the institution concerned.

Financial institutions wishing to carry on business for the first time in another Member State under the freedom to provide services must make a declaration to the Autorité de contrôle prudentiel et de résolution. This declaration must be accompanied by information of a type determined by an order of the Minister responsible for the economy.

They must also prove that they meet the conditions mentioned in the second paragraph of this article.

An order of the Minister responsible for the economy determines the information that must be communicated to the Autorité de contrôle prudentiel et de résolution prior to a change in the institution's situation and the information that must be communicated to the competent authority of the host Member State.

A financial institution operating in another Member State under the provisions of this article is subject to the provisions of Articles L. 511-13, L. 511-33, L. 511-39, L. 511-51 to L. 511-54, as well as to the orders adopted by the Minister responsible for the economy, for those of them which provide that their scope of application includes this category of institution. It is supervised by the Autorité de contrôle prudentiel et de résolution under the conditions set out in Articles L. 612-1 and L. 612-23 to L. 612-27 ; it may be subject to the measures and sanctions set out in Articles L. 511-41-3, L. 612-30 to L. 612-34, L. 612-39 and L. 612-40. The deregistration provided for in 7° of article L. 612-39 and in 5° of A of I of article L. 612-40 must be understood as the withdrawal of the benefit of the scheme defined in this article.

A decree of the Conseil d'Etat shall, where necessary, lay down the conditions for application of this article and article L. 511-27.