SUP 6.1 Application, interpretation and purpose7

This chapter applies to every firm with a Part 4A permission7 which wishes to:

1. (1)

   vary its Part 4A permission;7 or

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2. (2)

   cancel its Part 4A permission7 and end its authorisation;7

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3. (3)

   have a new requirement imposed on it;7

4. (4)

   vary a requirement imposed on it; or7

5. (5)

   cancel a requirement imposed on it.7

If appropriate, a firm which is an authorised fund manager3 should also refer to COLL 7 for guidance on the termination of ICVCs, ACSs4 and AUTs and on winding up authorised funds 3that are not commercially viable.1

1. (1)

   7In SUP 6 the "relevant regulator" is the regulator to which a firm with a Part 4A permission has made or can make (in accordance with SUP 6) an application to vary or cancel its Part 4A permission or to have imposed on it a new requirement or to vary or cancel any existing requirement (see SUP 6.2.3A G to SUP 6.2.3E G).

2. (2)

   Where the PRA can only determine an application with the consent of the FCA, the FCA may request further information as if it were the relevant regulator.

3. (3)

   In some instances, the Act requires the FCA and the PRA to consult with each other prior to exercising their powers under the Act. Details of where consultation is required have not been set out in SUP 6. Where a provision in SUP 6 makes reference to a power, the exercise of which by the FCA or the PRA (as the case may be) requires consultation under the Act, firms should be aware that the regulator concerned will need to consult the other regulator before exercising that power.

This chapter explains:

1. (1)

   how a firm with a Part 4A permission7 can apply to the relevant regulator7 to vary that permission;

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2. (2)

   how a firm which has ceased to carry on any of the regulated activities for which it has a Part 4A permission,7 or which expects to do so in the short term (normally less than six months), should apply to the relevant regulator7 to cancel that permission completely;

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3. (2A)

   how a firm with a Part 4A permission can apply to the relevant regulator to:7

   1. (a)

      have a new requirement imposed on it; or7

   2. (b)

      vary a requirement imposed on it; or7

   3. (c)

      cancel a requirement imposed on it.7

4. (3)

   the additional procedures that apply to a firm carrying on regulated activities which create long term obligations to customers (for example, effecting contracts of insurance, carrying out contracts of insurance or accepting deposits) that needs to wind down (run off) its business over a long term period (normally more than six months) and the applications it should make with a view to ultimately cancelling its permission; and

5. (4)

   how the relevant regulator7 assesses those applications.

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This chapter also outlines the relevant regulator's powers to withdraw authorisation from a firm whose Part 4A permission7 has been cancelled at the firm's request.

7This chapter does not cover the FCA's use of its own-initiative variation power or, in respect of FCA-authorised persons, its additional own-initiative variation power6 to vary or cancel a firm's Part 4A permission or its own-initiative requirement power to impose, vary or cancel a requirement (see SUP 7 (Individual requirements) and EG 8 (Variation and cancellation of permission and imposition of requirements6 on the FCA's own initiative and intervention against incoming firms)).