On 9 September 2021, the FCA published a consultation paper CP 21/28, ‘New cancellation and variation power: Changes to the Handbook and Enforcement Guide’.
The consultation concerns the power to vary or cancel statutory permissions to conduct FCA-regulated activities where an FCA-authorised firm:
- appears to be carrying on no FCA-regulated activities for which they have permission, and
- has not responded to notices warning of the risk of such action
Under the Financial Services Act 2021, the FCA will be able to start the cancellation process as soon as it considers permissions are not being used, by serving 14 days’ notice on a firm.
The consultation will be of interest to firms authorised or deemed to be authorised by the FCA under Part 4A of the Financial Services and Markets Act 2000. It may also be of interest to individuals holding approved functions at Part 4A FCA-authorised firms and to professional advisers to such firms.
The consultation will run until 29 October 2021 and can be found here.