The FCA can now vary or cancel permissions more quickly than previously applied.

What is changing 

The  FCA now has an additional power, which enables quicker action to:

• vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised firms, where those firms:
  • appear to be carrying on no FCA-regulated activities for which they have permission, and
  • have not responded to FCA notices of the risk of such action, and
• reflect such variations and cancellations on the Financial Services Register

Background 

The FCA has always been able to cancel or vary a firm’s permissions to carry out FCA-regulated activities if it hasn’t used them, but there was a waiting period of 12 months to do so in some situations.

The new power allows the FCA to cancel or vary permissions without the firm applying or the FCA obtaining the firm’s consent. This new power can be used if the FCA considers a firm is currently carrying on none of the regulated activities it has permission for. The 12 month waiting period no longer applies. The FCA can also reverse or annul any decisions to use the new power.

Full details can be read in the policy statement (PS 22/5).

See how to cancel an authorisation here.

See how to apply for a variation of permission here.