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<p>Over 5,000 UK firms, including banks, investment firms and insurance companies,
hold passports which enable them to provide their financial services and establish
branches in other EU Member States. Excluding banks more than three-quarters of all
of the firms in the EU that use passporting under the Markets in Financial Instruments
Directive are based in the UK. However, passporting rights are conferred under several
different pieces of EU legislation.</p><p> </p><p>Supervisory authorities record passport
notifications, including into which Member State the passport is being used, but there
is no detailed record of the type or scale of their use. The Treasury is engaging
with business to further understand the issues affecting the financial services industry
as the UK prepares for negotiations to leave the EU, including how firms make use
of the different passports available to them.</p>
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