SUP 6A.3 FCA’s own-initiative power

1Where the FCA grants approver permission to a firm under section 55NA of the Act, the FCA may vary the terms of that permission, or cancel it:

1. (1)

   on the application of the firm to whom it was given; or

2. (2)

   on the FCA’s own initiative, if it appears to the FCA that:

   1. (a)

      the firm has failed, during a period of at least 12 months, to give, or to refuse to give, any approvals in accordance with its approver permission. In practice, this might arise where:

      1. (i)

         the firm does not appear to have assessed any financial promotions for the purposes of potential approval for a period of at least 12 months; or

      2. (ii)

         the firm has only approved (or refused to approve) financial promotions of a substantially narrower description than the kinds for which it has approver permission; or

   2. (b)

      it is desirable to do so in order to advance one or more of its operational objectives.

[Note: section 55NA(8) of the Act]

1In deciding whether to vary or cancel a firm’s approver permission on its own initiative, the FCA will take into account all relevant factors in relation to the firm’s business. This may include its business model, the commercial environment and any legitimate explanation for the manner in which the firm has used its approver permission or for its failure to use its approver permission.

1. (1)

   1The FCA will consult the PRA before varying or cancelling, on the FCA’s own initiative, the terms of the approver permission of a PRA-authorised person or a member of a group which includes a PRA-authorised person.

2. (2)

   Where the FCA varies the terms of, or cancels, the approver permission of a Gibraltar-based person on its own initiative, the FCA is not obliged to consult with the Gibraltar regulator but the FCA will inform the Gibraltar regulator in writing of the variation or cancellation.

[Note: section 55NA(9) and (10) of the Act]

1. (1)

   1If the FCA exercises its power to vary the terms of a firm’s approver permission on its own initiative, it will do so by issuing a supervisory notice.

2. (2)

   If the FCA proposes to cancel a firm’s approver permission on its own initiative, it will give the firm a warning notice and, where the FCA decides to cancel, it will give the firm a decision notice.

3. (3)

   The procedure that will be followed in each case is set out in DEPP 2.

1A firm has a right of referral to the Tribunal in respect of the FCA exercising its power to vary or cancel a firm’s approver permission on its own initiative.