SIFA 15
Variation and cancellation of permission
SIFA 15.1
Variation of permission (VOP)
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SIFA 15.1.1
See Notes
A Part IV permission is granted by us
to allow a firm to conduct one or more regulated activities. The permission
states the activities that a firm may carry on and also specifies the designated
investments that it relates to. Should your firm wish to alter the regulated
activities it undertakes, or stop conducting them completely, you must apply
to us for a variation, or cancellation of permission. Rules and guidance on
this are in SUP 6.
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SIFA 15.1.2
See Notes
A firm can apply to us to vary its permission
if it wants to do one or more of:
(1) carry on further regulated activities;
(2) reduce the number of regulated activities
it is permitted to undertake;
(3) vary the description of its regulated
activities (including the removal or variation of any limitations); or
(4) add, remove or vary any requirement.
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SIFA 15.1.3
See Notes
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SIFA 15.1.4
See Notes
Under Section 45 of the Act we can vary
a firm's permission on our own initiative. This covers imposing a requirement
or limitation to a firm's Part IV permission, for example where a firm fails
to satisfy one of its threshold conditions, such as in relation to capital
adequacy.
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SIFA 15.1.5
See Notes
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 your usual supervisory contact as early
as possible. The supervisory contact for small IFA firms is the Contact Centre.
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SIFA 15.1.6
See Notes
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). We may
also vary a firm's permission for other reasons, for example if it appears
the firm is failing to satisfy the Threshold Conditions in relation to one
or more of its regulated activities.
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SIFA 15.1.7
See Notes
If your firm is applying for a VOP that
will require a change in the controlled functions of its approved persons,
you should also submit the necessary form at the same time as your application
for the VOP. For more information on Approved Persons see chapter 7 of this
Overview.
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Application procedure
SIFA 15.1.8
See Notes
An application for a VOP should be made
in writing and must contain a statement of the desired variation and of the
regulated activity (or activities) that your firm proposes to carry on if
its application is successful. Your firm should also explain the reasons and
circumstances that have given rise to the request and include any additional
information requested by your supervisor during pre-application discussions.
You must address and deliver the application to us as explained in SUP 15.7.4 to
SUP 15.7.6.
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SIFA 15.1.9
See Notes
Until the application has been granted,
we must be notified immediately your firm becomes aware of any significant
change in the information you have given.
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SIFA 15.1.10
See Notes
As soon as possible after receipt of
the application we will advise your firm of any additional information we
require. The amount of information we may request will depend on the scale
of the variation and its complexity. We have 6 months from receipt to deal
with a complete application. However, if the application is incomplete this
is extended to 12 months.
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SIFA 15.1.11
See Notes
We publish typical response times on
our website, setting out how long the process is expected to take in practice.
Also, from time to time, we will publish our performance against these times.
You will find details of our performance against the service standards on
our website by clicking on the following: 'Publications'; 'By type'; 'Annual
reports'; 'Annual report 2002/03' (or whichever year is relevant); and 'The
Performance Account' under the 'Additional information' heading.
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SIFA 15.1.12
See Notes
SUP 6 Ann 2 provides
a flowchart that summarises the procedures for applying for a variation of
Part IV permission.
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SIFA 15.1.13
See Notes
|
The
following section of this Overview is also relevant: •'Cancellation of permission' - Chapter 15.2. |
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SIFA 15.2
Cancellation of permission
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SIFA 15.2.1
See Notes
If your firm wishes to cease carrying
on all regulated activities for which your firm holds permission, you may
apply for a cancellation of Part IV 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).
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SIFA 15.2.2
See Notes
As with VOPs, we may cancel a firm's
permission under our own-initiative powers.
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SIFA 15.2.3
See Notes
A firm applying for cancellation should,
at the same time, notify us of the persons who perform controlled functions.
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SIFA 15.2.4
See Notes
We will not usually grant a cancellation
request until the firm can demonstrate that it has:
(1) ceased all regulated activities;
(2) repaid all client money and client deposits;
(3) discharged custody assets and all other
property belonging to clients; and
(4) discharged, satisfied, or resolved all
complaints against the firm.
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Application procedure
SIFA 15.2.5
See Notes
You must make a request for a cancellation
in writing (to the Cancellation Team at the FSA) stating the reasons and circumstances
for the application and the date at which your firm ceased, or intends to
cease, all regulated activities. When we receive the application, we will
send your firm an acknowledgement that will explain the cancellation process
and detail the information required.
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SIFA 15.2.6
See Notes
As with VOPs, until the cancellation
has been approved, your firm must inform us immediately it becomes aware of
any significant changes in the information you have submitted.
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SIFA 15.2.7
See Notes
To contact the Corporate Authorisation
Cancellation Team:
(1) telephone on 020 7066 1102; fax on 020
7066 1099; or
(2) write to: Corporate Authorisation Cancellation
Team, The Financial Services Authority, 25 The North Colonnade, Canary Wharf,
London, E14 5HS; or
(3) email corporate.authorisation@fsa.gov.uk
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SIFA 15.2.8
See Notes
SUP 6 Ann 3 provides
a flowchart that summarises the procedures for applying for a cancellation
of Part IV permission.
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SIFA 15.2.9
See Notes
|
The
following sections of this Overview are also relevant: •'Notifications' - Chapter 12.2; and •'Variation of permission (VOP)' - Chapter 15.1. |
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