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. Should your firm wish to alter the regulated activities it undertakes, or stop conducting them completely, you must apply to us for a variation, or cancellation of permission. Rules and guidance on this are in SUP 6.

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

1. (1)

   carry on further regulated activities;

2. (2)

   reduce the number of regulated activities it is permitted to undertake;

3. (3)

   vary the description of its regulated activities (including the removal or variation of any limitations); or

4. (4)

   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 5 of this Overview. Our powers to vary a firm's Part IV permission on our own initiative are described in SUP Chapter 7.

Under Section 45 of the Act we can 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 variation of permission 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 small IFA firms is the Contact Centre.

If your firm applies for a VOP to add new regulated activities, you should bear in mind that it is required to begin the activity within 12 months of being granted a variation of permission. 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. For more information on Approved Persons see chapter 7 of this Overview.

An application for a VOP should be made in writing and must contain a statement of the desired variation and of the regulated activity (or activities) that your firm proposes to carry on if its application is successful. Your firm should also explain the reasons and circumstances that have given rise to the request and include any additional information requested by your supervisor during pre-application discussions. You must address and deliver the application to us as explained in SUP 15.7.4 to SUP 15.7.6.

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

As soon as possible after receipt of 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 6 months from receipt to deal with a complete application. However, if the application is incomplete this is extended to 12 months.

We publish typical response times on our website, setting out how long the process is expected to take in practice. Also, from time to time, we will publish our performance against these times. You will find details of our performance against the service standards on our website by clicking on the following: 'Publications'; 'By type'; 'Annual reports'; 'Annual report 2002/03' (or whichever year is relevant); and 'The Performance Account' under the 'Additional information' heading.

If your firm wishes to cease carrying on all regulated activities for which your firm holds permission, you may apply for a cancellation of Part IV permission. You may do this whilst still carrying out business so long as your firm has formal plans to cease all regulated activities in the short term (normally 6 months from the date of application for the cancellation of permission).

As with VOPs, we may cancel a firm's permission under our own-initiative powers.

A firm applying for cancellation should, at the same time, notify us of the persons who perform controlled functions.

We will not usually grant a cancellation request until the firm can demonstrate that it has:

1. (1)

   ceased all regulated activities;

2. (2)

   repaid all client money and client deposits;

3. (3)

   discharged custody assets and all other property belonging to clients; and

4. (4)

   discharged, satisfied, or resolved all complaints against the firm.

You must make a request for a cancellation in writing (to the Cancellation Team at the FSA) stating the reasons and circumstances for the application and the date at which your firm ceased, or intends to cease, all regulated activities. When we receive the application, we will send your firm an acknowledgement that will explain the cancellation process and detail the information required.

As with VOPs, until the cancellation has been approved, your firm must inform us immediately it becomes aware of any significant changes in the information you have submitted.

To contact the Corporate Authorisation Cancellation Team:

1. (1)

   telephone on 020 7066 1102; fax on 020 7066 1099; or

2. (2)

   write to: Corporate Authorisation Cancellation Team, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS; or

3. (3)

   email corporate.authorisation@fsa.gov.uk

SUP 6 Ann 3 provides a flowchart that summarises the procedures for applying for a cancellation of Part IV permission.