If a TPR firm doesn’t meet our expectations, find out what actions we may take, depending on the circumstances.
On this page
The temporary permissions regime (TPR) is only for firms that want to operate in the UK in the long term, have applied for full UK authorisation/registration and meet the required standards.
We will seek to ensure that firms, where appropriate, cannot expand their UK business while in the TPR, and if they do not voluntarily leave the TPR we will take action to remove them. If we do take action against a firm, this may result in us contacting its home state regulator about our concerns and publishing a notice in the UK.
This page focuses on 4 scenarios where this would apply:
- firms that fail to respond to our mandatory information requests
- firms regulated under the Financial Services and Markets Act (FSMA) that missed their landing slot or failed to apply by 31 December 2022
- firms that do not intend to apply for full authorisation
- firms whose application for full authorisation is rejected, withdrawn or refused
The actions we will take against these firms may involve:
- taking steps to remove the firm from the TPR
- asking the firm to confirm that it has voluntarily stopped undertaking new business (eg onboarding new customers) or, if it does not voluntarily agree to this, seeking to use our powers to prevent it from undertaking new business
- for payments and e-money firms, requesting the firm to specify a date when it will cease to engage in new business and if it fails to do so, we may specify a date
A firm may avoid these actions if it voluntarily applies to cancel its temporary permission and, if eligible, enter either the supervised run-off (SRO) mechanism or the contractual run-off (CRO) mechanism (as appropriate) within the Financial Services Contracts Regime (FSCR).
Find out more about cancelling a temporary permission.
Firms that fail to respond to mandatory information requests
We expect firms to respond to our requests for information promptly. Firms that do not respond to mandatory information requests (those made under section 165 of FSMA, or otherwise) may be unable to demonstrate that they meet our Threshold Conditions (or Conditions for Authorisation for payments and e-money firms). Specifically, we may consider that these firms are not fit and proper or capable of being effectively supervised.
So far, we have cancelled the temporary permissions of 4 firms that did not respond to our mandatory information requests. These firms are no longer permitted to conduct regulated business in the UK. If they continue to do so, they may be committing a criminal offence.
We will continue to take action against such firms.
FSMA firms that did not apply by 31 December 2022
We expect firms to take regulation seriously and submit their application for authorisation when asked to do so.
A FSMA firm that missed its landing slot, (or otherwise failed to apply by 31 December 2022) will have failed to meet our expectations and, as a result, we will expect it to voluntarily apply to cancel its temporary permission and either, enter SRO to run-off its UK business (if eligible) or leave the UK regulatory perimeter.
Where firms do not take either of these steps promptly, we will look to take action to cancel their temporary permission.