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 us that it has ceased or will cease to carry on regulated activities.
Applying for a cancellation
A firm that intends to stop carrying on all regulated activities within the next six months should inform its nominated PRA supervisory contact before it submits an application to cancel. Early discussions to help us understand how and on what basis the firm is proposing to cease carrying on regulated activities are an essential part of the cancellation process. They help identify actions the firm is required to take before its application is submitted.
If a firm decides to apply to cancel its Part 4A permission, it must submit an application to cancel using Connect.
Credit unions may apply by paper form.
We do not charge a fee for cancelling permissions.
If a firm wishes to add and/or remove certain elements of its Part 4A permission and remain on the Financial Services Register, it must submit a variation of permission request rather than a cancellation.
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, we expect a firm to provide an audited financial report to confirm that it has no outstanding liabilities (now or in the future) arising from its regulated activities. Where relevant, the firm will also have to provide evidence (legal or otherwise) that it has obtained and appropriately considered the validity and implications of the arrangements entered into where it has undertaken to transfer or cancel contractual obligations arising in relation to its regulated activities.
We will inform firms that apply to cancel their part 4A permissions if we have deemed their application complete or incomplete. We will determine an application within:
- six months of receiving a complete application
- twelve months of receiving an incomplete application.
After a firm submits an application to cancel, it will be assigned to a case officer. The case officer will contact the firm and keep it updated throughout the assessment period. The PRA will lead the assessment for all PRA-authorised firms. However, we must consult with the Financial Conduct Authority, which will assess the application against its own operational objectives.
If either we and/or the FCA propose to refuse an application, we will outline the various options open to the firm for challenging the decision.