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.

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 while still carrying out business, as long as your firm has formal plans to cease all regulated activities in the short term (within six months from the date of application for the cancellation of permission).

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

There is no fee for applying to cancel. If a firm wants to cancel some, but not all, of its regulated activities, it should apply to vary its permission instead.

Before applying for its Part IV permission to be cancelled a firm must either:

• have ceased carrying on regulated activities; or
• plan to cease doing so within six months of the application being made.

The firm should have also:

• told its clients and its approved persons of its intention to cancel its permission;
• paid all its outstanding fees;
• filed any regulatory returns that are due;
• resolved any complaints against it; and
• made suitable arrangements to deal with any subsequent complaints and liabilities that might arise.

If you wish to cancel your firm's permission, you must complete and submit the Cancellation of Part IV Permission application form. This may be done in several ways:

• you may access the Online form and send it to us using Firms Online;
• you may access the form from our website under 'FSA Library - Forms'; or
• you may obtain a form from the Firm Contact Centre.

A cancellation application may also be delivered to us by any of the methods explained in SUP 15.7.4 R to SUP 15.7.6 G. If you have any questions, you should contact the Cancellation Team at the FSA. When we receive the application, we will send your firm an acknowledgement that will explain the cancellation process and detail the information required. We may ask for further information - depending on the type of firm, the type of clients and the manner of disposal of the business.

The deletion of controlled functions is an automatic part of the process. A firm applying for cancellation does not also need to notify the withdrawal of persons who perform controlled functions using Form C.

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

To contact the Cancellation Team:

• email cancellation.team@fsa.gov.uk;
• telephone on 020 7066 1102;
• fax on 020 7066 9798; or
• write to: Cancellation Team, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS