Schedule 11: Variation or cancellation of Part 4A permission on initiative of FCA: additional power
- Schedule 11 amends FSMA to insert section 55JA and Schedule 6A. Section 55JA introduces Schedule 6A which provides the FCA with an additional power to vary or cancel a firm’s Part 4A permission. Schedule 6A provides that the FCA may cancel or vary a firm’s Part 4A permission on specific grounds. Those grounds are where the FCA has given a notice to the authorised person- (i) stating that it appears to the FCA that the person is not carrying on a regulated activity, (ii) inviting the person to attest to the FCA that the person is in fact carrying on a regulated activity, and (iii) warning of the consequences of a failure to do so; the authorised person fails to satisfy the FCA that the person is carrying on a regulated activity within 14 days of the notice being issued; and that the FCA has issued a further notice.
- Paragraph 1(3) sets out the circumstances in which the FCA may form the view that an authorised person is not carrying on a regulated activity which include where the authorised person fails to (a) pay fees, or (b) provide such information to the FCA as is required by the FCA Handbook.
- Paragraphs 4 to 6 set out a procedure by which an aggrieved person can apply to annul a decision to cancel or vary its Part 4A permission. Paragraph 7 creates a right to refer the matter to the Upper Tribunal subsequently.
