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Cancellations

 

Cancellation refers to the removal of a firm’s entire Part 4A permission. If a PRA-authorised firm wishes to have its Part 4A permission cancelled it must demonstrate to the PRA that it has ceased or will cease to carry on regulated activities. 

Application stage

A firm intending to cease carrying on all regulated activities within the next 6 months should inform its nominated PRA supervisory contact prior to submitting an application to cancel. Early discussions to understand how and on what basis the firm is proposing to cease carrying on regulated activities is an essential part of the cancellation process, and helps identify actions the firm is required to take before the application is submitted.  

If a firm decides to apply to cancel its Part 4A permission it must complete and submit an application to cancel using Connect.  Credit unions may apply by paper form If a firm wishes to add and/or remove certain elements of its Part 4A permission and remain on the Register, it must submit a variation of permission rather than a cancellation.  Further information on the application process can be found in the FAQs attached in Key Resources.  All FCA-authorised firms should apply to the Financial Conduct Authority.

What should be included in the application?

Applications to cancel should include a clear and concise explanation as to how the firm’s board of directors has satisfied itself the firm is no longer carrying on regulated activities, along with appropriate supporting evidence.

Typically, the PRA expects a firm to provide an audited financial report to confirm that the firm has no outstanding liabilities (now or in the future) arising from its regulated activities, and/or evidence (legal or otherwise) that it has obtained and appropriately considered the validity and implications of the arrangements entered into by the firm having regard to the PRA’s statutory objectives where it has undertaken to transfer or cancel contractual obligations arising in relation to its regulated activities.

Timeline and statutory clock

For PRA-authorised firms the PRA will inform the applicant whether the application is deemed complete or incomplete. The PRA will determine an application within:

  • 6 months of receiving a complete application; or
  • 12 months of receiving an incomplete application. 
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