SIFA 15.1 Variation of permission (VOP)

A Part IV permission is granted by us to allow a firm to conduct one or more regulated activities. The permission states the activities that a firm may carry on and also specifies the designated investments that it relates to. If your firm wishes to alter the regulated activities it undertakes, you must apply to us for a variation of permission. Rules and guidance on this are in SUP 6.

You can see the permissions that you (or any other firm) currently hold by carrying out a 'Firm search' in the FSA Register. The FSA Register is available on our website.

A firm can apply to us to vary its permission if it wants to do one or more of the following:

• carry on further regulated activities (such as general insurance and mortgages); or
• reduce the number of regulated activities it is permitted to undertake; or
• vary the description of its regulated activities (including the removal or variation of any limitations); or
• add, remove or vary any requirement.

Limitations and requirements are covered in AUTH 3.6 and AUTH 3.7 and are also described in Chapter 6 of the Guide. Our powers are described in SUP 7.

Under section 45 of FSMA, we can also vary a firm's permission on our own initiative. This covers imposing a requirement or limitation to a firm's Part IV permission - for example, where a firm fails to satisfy one of its threshold conditions, such as in relation to capital adequacy.

If your firm intends to expand its business you should assess, taking appropriate professional advice where necessary, whether you will need to apply to us for a VOP before making any changes. If your firm is planning on varying its permission substantially, you should discuss these plans with your usual supervisory contact as early as possible. The supervisory contact for smaller investment intermediaries is the Firms Contact Centre. A substantial variation of permission could mean that the firm falls into a different fee block (see Chapter 18 of the Guide). In these circumstances a non-refundable application fee will be due and must be submitted at the time the application is made (see SUP 6.3.21 G).

If your firm applies for a VOP to add new regulated activities, you should bear in mind that a firm is required to begin the activity within 12 months of being granted a VOP. We have the power to alter a firm's permission if it does not adhere to this rule, or if it ceases to provide a permitted regulated activity for a period of 12 months or more (regardless of when the permission was granted). We may also vary a firm's permission for other reasons - for example, if it appears the firm is failing to satisfy the Threshold Conditions in relation to one or more of its regulated activities.

If your firm is applying for a VOP that will require a change in the controlled functions of its approved persons, you should also submit the necessary form at the same time as your application for the VOP. Form A is required if your firm intends to recruit new people to undertake controlled functions. We require Form C for persons ceasing to perform controlled functions, and Form E is for the internal transfer of an approved person or for an approved person to perform additional controlled functions. For more information on Approved Persons see Chapter 7 of the Guide.

If your firm wishes to apply for a VOP, you should complete a variation of permission application form. You can access the form and submit it to us using Firms Online. The form is also available through the Handbook section of the CD-ROM under Forms. You are advised to discuss an application with your usual supervisory contact at the FSA before sending in your request. You must address and deliver the application to us as explained in SUP 15.7.4 R to SUP 15.7.6 G.

Until the application has been granted, we must be notified immediately when your firm becomes aware of any significant change in the information you have given.

As soon as possible after receiving the application we will advise your firm of any additional information we require. The amount of information we may request will depend on the scale of the variation and its complexity. We have up to six months from receipt during which to deal with a fully completed application. However, if the application is incomplete, the time limit is extended to 12 months.