In relation to a financial services firm established in an EU country, the term 'freedom of services' means:

• A. Set up a branch in another EU country.
• B. Provide any type of financial service the firm wishes to provide, without requiring any fresh authorisation.
• C. Charge different levels of fees to different consumers, without requiring authorisation to do so.
• D. Provide financial services to consumers in another EU country on a cross border basis.

Answer: (D)

The freedom of services in the EU allows a financial services firm to provide services to clients in another member state without establishing a local presence. In practice, the firm can offer and supply services across borders from its home base, while complying with the home-country rules and any necessary host-country regulations.

This describes providing financial services to consumers in another EU country on a cross-border basis, which is what the option captures.

Setting up a branch describes freedom of establishment, not freedom of services. The idea of offering any service without fresh authorisation ignores regulatory requirements that may still apply for cross-border activities. Pricing differences to consumers aren’t the core concept of cross-border service rights.