SIFA 16.1 General approach

We may, on the application or with the consent of your firm, state that certain rules:

1. (1)

   are not to apply to your firm; or

2. (2)

   are to apply to your firm with specified modifications.

Under the Act we can only grant a waiver where we are satisfied that:

1. (1)

   compliance by your firm with the rule would be unduly burdensome or would not achieve the purpose for which the rule was made; and

2. (2)

   the waiver would not result in undue risk to persons whose interests the rules are intended to protect.

SUP 8 sets out our approach to waivers. Most but not all rules can be waived (see SUP 8.2.6 G to). Schedule 6 to each sourcebook identifies the rules in that sourcebook that can and cannot be waived.

Unless there are exceptional circumstances, SUP 8.2.8 G we normally publish the details of waivers we have given. You can view the details of published waivers through the FSA Register. Before you do so, you will need to know the name of the firm. You can also view waivers in a consolidated list by rule, but we update the list only monthly.

You must use the standard form on our website if you apply for a waiver (referred to at SUP 8.3.3 Dand SUP 8 Annex 2). You will find it through the "Forms" link at www.fsa.gov.uk/handbook: Go to 'Industry' 'Help'; select 'Waivers'; click on 'form' at the bottom of the page and then click on 'Waivers application form'. You will also find it through the Handbook section of the CD-ROM under 'Forms'.

You can send applications by email or by post to the IFD Contact Centre or to your usual contact in Corporate Authorisation.

An example of a rule waiver being given to IFAs is Professional Indemnity Insurance cases where IPRU (INV) 13.1.3R has been waived to enable firms to continue in business without holding PII. In these cases, firms have been unable to get PII but as they are able to demonstrate they have adequate resources, they are in a position to "self-insure" against potential claims.

In exceptional circumstances where we consider that a waiver should apply to a number of firms, we may tell the firms concerned that the waiver is available. These firms will not have to make a formal application but will have to give their written consent for the waiver to apply to them.