Prudential Regulation Authority Rulebook

A firm must apply to us to vary its permission if it wants to do one or more of the following:

Our rules on variation of permission are in SUP 6. There is a flowchart at SUP 6 Annex 2 that summarises the procedures for applying for a VOP. Limitations and requirements are covered in AUTH 3.6 and AUTH 3.7 and are also described in Part I, Chapter 4 of this Guide. Our powers are described in SUP 7 and ENF 3.

If your firm intends to expand its business you should assess, taking appropriate professional advice where necessary, whether you will need to apply to us for a variation of permission before making any changes. If your firm is planning on varying its permission substantially, you should discuss these plans with us as early as possible.

If your firm applies for a VOP to add new regulated activities, you should bear in mind that it is required to begin the activity within 12 months of being granted a variation of permission. We have the power to alter a firm's permission if it does not adhere to this rule, or if it ceases to provide a permitted regulated activity for a period of 12 months or more (regardless of when the permission was granted).

If your firm is applying for a VOP that will require a change in the controlled functions of its approved persons, you should submit the necessary form at the same time as your application for the VOP. For more information on approved persons and where to find the relevant forms see Part I, Chapter 6 of the Guide.

If your firm wishes to cease carrying on all regulated activities for which your firm holds permission, you may apply for a cancellation of permission. You may do this whilst still carrying out business so long as your firm has formal plans to cease all regulated activities in the short term (normally 6 months from the date of application for the cancellation of permission). Our rules on cancellation of permission are in SUP 6. There is a flowchart at SUP 6 Annex 3 that summarises the procedures for applying for a cancellation of permission.

Authorised firms can complete a VOP or cancellation of permission request by using the Firms Online system at www.fsa.gov.uk/pages/Doing/Regulated/Firms/ or by calling the Firm Contact Centre on 0845 606 9966. (If you have a dedicated supervisor at the FSA you should call them in the first instance.)