ENF 4.2 The FSA's power to intervene against incoming firms

The FSA's power to intervene against incoming firms, and the grounds for exercising that power, are contained in sections 194 to 196 of the Act. Section 196 (The power of intervention) identifies the types of requirements the FSA may impose when it exercises its power of intervention against an incoming firm. Section 195 (Exercise of power in support of overseas regulator) gives the FSA power to intervene against an incoming firm in support of an overseas regulator and section 194 (General grounds on which power of intervention is exercisable) relates to all other circumstances.

Under section 196, where the FSA is entitled to exercise its power of intervention in respect of an incoming firm, it may impose any requirement on the firm which it could impose if:

1. (1)

   the firm's permission was a Part IV permission; and

2. (2)

   the FSA was entitled to exercise its power under that Part to vary that permission.

Paragraphs ENF 3.2.8 G to ENF 3.2.10 G explain and provide examples of the requirements the FSA may impose when it exercises its power to vary permission.