A firm authorised under Part 4A of the Financial Services and Markets Act 2000 (FSMA) has a single Part 4A permission granted by the PRA or the Financial Conduct Authority (FCA). This permission includes a description of the activities the firm may carry on (including any limitations), the specified investments involved, and, if relevant, any requirements. A firm is prohibited from carrying on a regulated activity in the UK (or purporting to do so) otherwise than in accordance with its permission.
If a firm decides to do any of the following, it should review its Part 4A permission and decide whether it needs to vary it:
- start a new line of business
- undertake a new regulated activity
- extend a business line into a new product or to a new class of people.
All regulated activities are defined in the Regulated Activities Order.
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. Our approach to banking supervision and approach to insurance supervision set out our policy on the matters that we will consider in respect of the Threshold Conditions when we decide to grant permissions.
How to apply for a variation of permission
Dual-regulated firms must apply to the PRA to vary their permission.
Firms must complete and submit their variation of permission application using the Connect system. This system is owned and maintained by the FCA, but all relevant applications will be directed to the PRA. There may be a fee payable for the application, details are included within the Connect system.
Credit unions may apply to amend their permission via paper application form. Credit unions may wish to engage with their supervisory contact to discuss the application before submitting the form.
Firms should refer to the PRA Rulebook to determine the relevant fee for their application.
You can pay the application fee 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.
The PRA and FCA will determine all applications within the earlier of six months of receiving a complete application or twelve months of receiving an incomplete application.
If the application is granted, we 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 various options for contesting 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.
MiFID II implementation - structured deposits
MiFID II is part of a legislative package comprising the Directive, MiFID II (2014/65/EU), and the Markets in Financial Instruments Regulation (2014/600/EU) (MiFIR).
MiFID II applies from Wednesday 3 January 2018 when it replaces the current MIFID I regime.
The PRA consulted and published its final policy in Policy Statement (PS) 29/16 ‘Implementation of MiFID II: Part 1’ and PS9/17 ‘Implementation of MiFID II: Part 2’. Solo regulated Financial Conduct Authority (FCA) firms should refer to the FCA’s website.
Activities in relation to structured deposits
From 1 April 2018, dual regulated firms wishing to perform regulated activities in respect of structured deposits must follow the variation of permission application process and apply through the Connect system.
From 1 April 2018, EEA firms wishing to perform regulated activities in respect of structured deposits must follow the variation of permission application process for a ‘top-up’ Permission. Please see the Passporting FAQ for more information on the process.