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Financial Services Act 2021

Schedule 11: Variation or cancellation of Part 4A permission on initiative of FCA: additional power

  1. 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.
  2. 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.
  3. 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.

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