FCA hastens process to cancel or vary regulated firm's permissions

Strengthening consumer protection

Ayesha Venkataraman
clock • 2 min read

The Financial Conduct Authority (FCA) has instituted new powers to more swiftly cancel or vary a firm’s unused permissions to carry out FCA-regulated activities in a bid to reduce the risk of harm to consumers.

While the FCA has always been able to cancel or vary a firm's permissions to carry out FCA-regulated activities if it has not used them, it had to wait 12 months to do so in some situations, it said. The new expedited process enables the watchdog to cancel or vary permissions without the firm application or consent. Under the new process, the FCA will provide a firm with two warnings if it believes it is not using its regulatory permission. If the firm fails to take the appropriate action, the watchdog will then be able to cancel or change the permission 28 days after the first warning. ...

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