| Link(s): https://www.fca.org.uk/news/statements/fca-reminds-firms-regularly-review-regulatory-permissions |
Context
The FCA has reminded firms of their obligation to regularly review their regulatory permissions to ensure these are up to date or removed where they are not needed.
Key points to note
- The FCA expects firms to notify it of any material changes in a timely manner. The FCA has the power to cancel a firm’s Part 4A permission if it has not carried out the regulated activity for at least 12 months
- If a firm has a regulatory permission but has not carried out any regulated activities for 12 months, and has no plans to do so, a cancellation should be applied for via Connect https://www.fca.org.uk/firms/connect
- If a firm has a Part 4A permission and has not used it or no longer needs some of the permissions, an application for a variation of permission should be submitted via Connect https://www.fca.org.uk/firms/connect
- Reviewing permissions and maintaining only those needed helps to ensure a firm is:
- Continuing to meet the Threshold Conditions
- Demonstrating effective oversight of the business
- Meeting obligations under SM&CR
- Providing customers with accurate information
- Firms are required to provide an annual attestation that the information on the Financial Services Register is correct
- The FCA will have new powers contained as part of the Financial Services Bill, which will enable notice to be served to firms where the FCA believes regulated activities are not being carried out and to request a written response within 14 days. Failure to respond will result in a second, public notice, explaining that it appears the firm is not carrying on a regulated activity and then the FCA may vary or cancel the firm’s permissions within one month.
Next actions
Firms should ensure that they regularly check their regulatory permissions to ensure accuracy and complete the relevant applications where changes are required.