This section applies where—
two or more FCA investment firms are subsidiary undertakings of the same parent undertaking,
the parent undertaking's head office is in a country or territory outside the United Kingdom, and
in the FCA's opinion, the law and practice in the other country or territory does not impose requirements on the parent undertaking which have equivalent effect to requirements imposed by Part 9C rules.
Where this section applies, the FCA may exercise its power under section 55L(3) to impose a requirement on the FCA investment firms to secure that a parent undertaking with its head office in the United Kingdom is established.