ENF 3.1 Application and purpose

This chapter applies to all firms.

This chapter contains a statement of the FSA's policy on how it will use its own-initiative power to vary a firm's Part IV permission under sections 45 (Variation etc on FSA's own initiative) and 47 (Exercise of power in support of overseas regulator) of the Act. The FSA has related powers to intervene against incoming firms and to cancel Part IV permission on its own initiative. These powers are dealt with in ENF 4 (Intervention against incoming firms) and ENF 5 (Cancellation of Part IV permission on the FSA's own initiative and withdrawal of authorisation).

This chapter outlines:

1. (1)

   the FSA'sown-initiative power to vary permission under the relevant sections of the Act;

2. (2)

   the grounds for exercising that power (both generally and in support of overseas regulators);

3. (3)

   the FSA's duty to ensure that firms satisfy the threshold conditions when it exercises its own-initiative powers; and

4. (4)

   the FSA's policy on the exercise of the power (both generally and in support of overseas regulators).

The FSA also has powers to vary a firm's Part IV permission at a firm's request under section 44 of the Act (Variation etc at request of authorised person). SUP 6 (Applications to vary and cancel Part IV permission) contains a statement of the FSA's policy in relation to that section of the Act. In this chapter, variation of Part IV permission means variation of on the FSA's own initiative.