SUP 6A.1 Application and purpose

1This chapter applies to a firm:

1. (1)

   that wishes to apply to the FCA for approver permission; or

2. (2)

   with approver permission.

1This chapter will also be of interest to a person who is applying, or is considering applying, for Part 4A permission and who may also wish to apply for approver permission.

1Under sections 21(2A) and 55NA of the Act2 a firm is unable to approve a financial promotion for the purposes of section 21 of the Act unless:

1. (1)

   the firm has obtained approver permission entitling it to approve that financial promotion; or

2. (2)

   an approver permission exemption applies.

1A firm that approves, or purports to approve, a financial promotion other than:

1. (1)

   in accordance with the terms of its approver permission, if it has such a permission; or

2. (2)

   within the scope of an approver permission exemption,

is taken to have contravened a requirement imposed on the firm under the Act.

[Note: section 55NA(2) and (11) of the Act]

1This chapter explains how:

1. (1)

   a firm can apply for approver permission;

2. (2)

   a firm with approver permission can apply to the FCA to vary the terms of that approver permission or to cancel it; and

3. (3)

   the FCA assesses and determines those applications.

1This chapter also outlines the FCA’s power, on its own initiative, to vary the terms of a firm’s approver permission or to cancel it.

1This chapter also includes a rule that requires a firm to keep the FCA informed of its plans to approve financial promotions of investments subject to marketing restrictions (SUP 6A.2.19R).

1Apart from the FCA’s power to grant, vary or cancel approver permission, section 55NA(12) of the Act confirms that the FCA may exercise other powers under the Act to restrict a firm’s ability to approve financial promotions beyond the restriction imposed by section 55NA. For example, the FCA may exercise its power to impose requirements under section 55L of the Act to restrict a firm’s ability to approve financial promotions for which it would not otherwise require approver permission (see SUP 6.3 and SUP 7).