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Home > Prudential Regulation Authority > Submitting, assessing and determining a VoP

Submitting, assessing and determining a VoP

Variation of permission  | Submitting, assessing and determining a VoP

Proposed variations of permission (VoP) differ widely in their impact and complexity. Consistent with the PRA’s risk-based approach, the depth of the PRA’s assessment will be proportionate to the impact of the variation on the PRA’s objectives. 

The PRA will assess the impact of applications to increase permissions on the firm as a whole, mindful of the uncertainty about the eventual nature and extent of the firm’s activity in the proposed new area(s). Where the variation may lead to an increase in the prudential risks to a firm, the PRA will seek to understand these and be assured that they will be mitigated.
The authorisation of a VoP will not be granted unless both the PRA and the FCA are satisfied that it should be. The FCA is required to gives its consent to the PRA before any final decision can be made on an application. In some cases, the PRA is required to consult with the FCA (such as in the amendment of requirements).
The PRA’s assessment of applications to decrease permissions is likely to be more limited.  Since firms would probably have already ceased the activity or activities in question, the application is unlikely to pose any further risks to the firm’s safety and soundness.

Submitting and Determining a VoP

Part 4A of FSMA sets out the requirements of variations of permissions and the Threshold Conditions which must be met at authorisation of the activity and on an ongoing basis.   The PRA Approach To Supervision  documents set out the PRA’s policy on the matters that will be considered in respect of the Threshold Conditions when deciding to grant permissions. 

Firms must complete and submit a VoP using the Connect system.  This system is owned and maintained by the FCA, but all relevant applications will be directed to the PRA.  Credit unions may apply to amend their Part 4A permission via paper application, attached below under Key Resources. Credit Unions may wish to engage with their supervisory contact to discuss the application before submitting the form. 
The PRA and FCA will determine all applications within the earlier of:
  • six months of receiving a complete application; or
  • 12 months of receiving an incomplete application.

If the application is granted, the PRA will send a Written Notice to the firm. If the application is not successful and the PRA and/or the FCA propose to refuse it, the PRA will inform the applicant about the procedure and the various options open to the applicant to contest the decision.

If at any time during the authorisation process the applicant wishes to withdraw its application, it may do so. The application fee is not refundable.

Application fees

Firms increasing the scope of their permissions will be charged a non-refundable application fee which must be paid before the application can be processed. A fee of £250 is charged for applications that will increase a firm's permitted business activities but which will not change a firm's fee blocks. Firms lessening the scope will not be charged.

If a firm’s application means that it moves into a new fee block, the relevant fee for that block must be paid on submission. The relevant fee is 50% of the authorisation fees set out in FEES 3 Annex 1.  If a firm move into more than one new fee block, it will pay the highest of any relevant fees.

VoP application fees can be paid by sending a cheque to the PRA made payable to the Financial Conduct Authority (as the fee administrator) to:

PRA Authorisations
Authorisations Division
Prudential Regulation Authority
20 Moorgate
London EC2R 6DA

Key Resources

Notification to the PRA under Article 16 of the Financial Services and Markets (Regulated Activities) (Amendments) Order 2017

​Variation of permission FAQs 

Variation of permission application form - Applications for insurance business, banking, electronic money, Lloyd's market and funeral plan providers. Credit Unions should use this form.

Variation of permission application form - Applications for investment business. Dual Regulated Firms should submit this form to the PRA (