The Authorisation manual (AUTH) sets out the background and provides guidance on how we authorise firms. All firms and individuals enter the regulated environment through an authorisation or approval process. Our assessment at entry aims to allow only those firms and individuals satisfying the necessary criteria (including honesty, competence and financial soundness) to engage in regulated activity.

To apply to become directly authorised by the FSA, you need to submit an application to us for what is called a Part IV permission (permission for a firm to carry on regulated activities under the Financial Services and Markets Act 2000 (FSMA)). We will assess the application against the Threshold Conditions and advise you of our decision.

There are several different types of application pack depending on the type of business you plan to undertake and the type of legal entity you intend trading as. The packs that have been tailored for smaller firms are the Small Firms Application Pack and the Sole Trader Application Pack for sole traders with no other approved persons. Applicants must also submit the appropriate Small Firms Controller Forms for each of the firm's controllers (the people who own the firm). These packs and forms are available on our website.

The threshold conditions are set out under Schedule 6 of FSMA. There is guidance on the conditions in COND. You are responsible for ensuring that you continue to meet the threshold conditions to retain your authorisation and scope of permission.

Your permission will specify the regulated activities and the investments where you can do business with private customers. A permission may also include one or more limitations or requirements - for example, not holding client money.

You are responsible on a continuing basis for ensuring that your firm holds the correct permission that includes the regulated activities that you wish to carry out. If you hold permission for activities you do not carry out you may pay higher fees than necessary.

To carry on mortgage or general insurance business you must have the correct permission to do these types of business. For example, you will need to vary your Part IV permission to include permission to carry on general insurance if you sell, advise on, arrange, deal as agent in or assist in administering and carrying out term assurance or other types of insurance such as home contents, motor or mortgage protection. You can vary your permission by completing our standard variation of permission form. This is available on our website through Firms Online.

Both the Authorisation and Supervision manuals are relevant. The Perimeter Guidance manual, whilst not part of the Handbook, provides guidance about circumstances in which authorisation is required, or exempt person status is available. It also includes guidance on the activities which are regulated under FSMA and the exclusions which are available.

After Part IV permission has been granted, a firm can apply to vary or cancel that Part IV permission, including any limitation or requirement, at any time. The procedures that need to be followed are set out in Chapter 6 of the Supervision manual (SUP). The forms for variation and cancellation of permission are available on our website through Firms Online.

The Perimeter Guidance Manual (PERG) is closely based on the text which previously appeared as AUTH Chapters 2 and 7 and AUTH Appendices 1 to 6.

Chapter 15 of the Guide covers Variation and Cancellation of Permission.

Firms that are not authorised and are enquiring about applying for authorisation should contact the Authorisation & Approvals Helpline on 020 7066 3954 or by email to corporate.authorisation@fsa.gov.uk. All queries about whether an activity is a regulated activity and whether a firm needs to be authorised should be sent to the Authorisation Enquiries Department at AuthorisationEnquiries@fsa.gov.uk or by calling 020 7066 0082.

You can download the Application Packs and Guidance notes from the 'Doing business with the FSA' part of our website free of charge or you can order a printed copy from our Publications Helpline on 0845 0608 2372 (at a charge). Please see Chapter 19 of the Guide for further details.

When we grant an application for Part IV permission, we will update the FSA Register with the activities the firm has permission to carry on. You can access the Register from our website and, as it contains publicly available information, you can use it to check whether firms you are dealing with are authorised or appointed representatives.