Written by Brandon Wong

The FCA has published a statement reminding firms to review their regulatory permissions regularly to ensure that they are updated and removed where they are not needed.

The Financial Services Bill, once enacted, will grant new powers to the FCA to act more quickly when it considers that firms are no longer carrying on regulated activities.  Where this is the case, the FCA will be able to serve notice on the firm, asking for a response within 14 days. Where no response is provided, it will be able to publish a second, public notice explaining that the firm appears to no longer be carrying on a regulated activity.  After one month, the FCA can then vary or cancel the firm’s permissions. 

The statement also provides a reminder to firms to ensure that the Financial Services Register is kept up to date, as it states that incorrect or outdated permissions increase the risk of harm to consumers and can potentially mislead consumers about the level of protection offered.

Firms are also required to provide an annual attestation confirming that the information held on the Financial Services Register is accurate.

We recommend that firms review their existing permissions and make any changes necessary.  We are able to assist firms who need to cancel their Part 4A permissions where they have not carried on any regulated activities for 12 months or more and have no current plans to do so. We can also assist with varying Part 4A permissions where these permissions have not been used and are no longer needed.