AUTH 1.1 Application and purpose

This manual applies to:

1. (1)

   a person which is considering carrying on activities in the United Kingdom which may fall within the scope of the Act and is seeking guidance on whether it needs to be an authorised person;

2. (2)

   a person which seeks to become an authorised person under the Act and which is, or is considering, applying to the FSA for Part IV permission to carry on regulated activities in the United Kingdom;

3. (3)

   an EEA firm, a Treaty firm or a UCITS qualifier that wishes to establish a branch or provide cross-border services into the United Kingdom using EEA rights, Treaty rights or UCITS Directive rights, or apply for a top-up permission;

4. (4)

   a candidate for approval under Part V of the Act, but only in respect of AUTH 6 (Approved persons), which is of general relevance; and

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5. (5)

   persons generally.

The purpose of:

1. (1)

   authorisation is to allow only persons which satisfy the necessary conditions (relating, for example, to adequate resources and suitability - see COND) to engage in a regulated activity; and

2. (2)

   approval of persons (generally individuals) is to seek to ensure that only fit and proper persons perform controlled functions in the financial services industry.

The purpose of this manual is to give guidance about:

1. (1)

   the circumstances in which authorisation is required, or exempt person status is available, including guidance on the activities which are regulated under the Act and the exclusions which are available; see PERG 22 (Authorisation and regulated activities);

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2. (2)

   the procedures by which a person can apply for, or obtain, permission under the Act to carry on these regulated activities and become an authorised person and any fees payable; see AUTH 3 (Applications for Part IV permission) and5 FEES 3 (Application, Notification and Vetting Fees)4.

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3. (3)

   the procedures by which a person seeking to become an authorised person can obtain approval for persons to perform controlled functions under the approved persons regime; see AUTH 6 (Approved persons); and

4. (4)

   the FSA's powers in relation to authorisation and how it will use them (see AUTH 3 and AUTH 5).31