TPR firms that do not meet our expectations

If a TPR firm doesn’t meet our expectations, find out what actions we may take, depending on the circumstances.

The temporary permissions regime (TPR) is only for firms who want to operate in the UK in the long term, are getting ready for full UK authorisation, 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 and publishing a notice in the UK.

This page focuses on 4 scenarios where this would apply:

  • FSMA firms that miss their landing slot
  • firms that fail to respond to mandatory information requests
  • firms that do not intend to apply for full authorisation
  • firms whose authorisation application is 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 they have voluntarily stopped undertaking new business (ie onboarding new customers) or, if they do not voluntarily agree to this, seeking to use our powers to prevent firms from undertaking new business
  • directing a FSMA firm to apply in a landing slot sooner than the existing landing slot
  • for payments and e-money firms, requesting the firm to specify a date when they will cease to engage in new business – if they fail to do so, we may specify the date

A firm may avoid these actions if they voluntarily apply to cancel their temporary permission completely and, if eligible, enter the supervised run-off (SRO) mechanism within the Financial Services Contracts Regime (FSCR).

Find out more about cancelling a firm’s temporary permission.

FSMA firms that miss their landing slot

We expect firms to take regulation seriously and submit their application for authorisation when asked to do so.

If you’re a FSMA firm that misses your landing slot, you will have failed to meet our expectations.

We expect you to either:

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.

We have taken action against a number of firms that haven’t responded to mandatory information requests, and will continue to do so. For example, we cancelled the temporary permissions of 4 firms that did not respond to the TPR Attestation Survey, despite having given them opportunities to do so. 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.

Firms that do not intend to apply for authorisation

The TPR was designed to ensure continuity of service for UK customers. It enables firms to transition from the passporting regime to the UK full authorisation regime so they can, temporarily, provide that service to UK customers while they seek authorisation or wind down their business.

Firms that do not intend to apply for authorisation but continue to hold temporary permissions to undertake new business present a risk of harm as they can expand their business without any intention of staying in the UK long term. These firms can present a risk of harm if the business grows and there has been no regulatory review of that business as it grows in the UK. We would expect any firm that wishes to expand its business in the UK to want to be authorised.

There may be some scenarios where firms have valid reasons for not applying for full authorisation. This includes if:

  • they are merging with another entity and intend to cancel thereafter
  • they are a firm which cannot carry on its business under the UK’s on-shored regime and so must transfer their UK business to a UK legal entity if they wish to continue to serve the UK market (eg an operator/manager/trustee/depositary of a UK authorised collective investment scheme or a payment services firm)
  • they are becoming an appointed representative (AR) of a UK authorised person and intend to cancel their temporary permissions once the AR application is approved

Your firm will need a valid reason if you don’t intend to apply for full authorisation. If you don’t have one, we expect you to:

Firms whose authorisation application is refused or withdrawn

If you are a TPR firm and you fail to meet the Threshold Conditions/Conditions for Authorisation, we will refuse your application for authorisation if you don’t voluntarily withdraw it.

If your firm has existing UK regulated business to run-off, we expect you to voluntarily cancel your temporary permission and enter SRO. If you don’t do this, we may take action to remove your firm from the TPR.

If your application is refused or withdrawn, you should not reapply within TPR. However, you may apply separately as a new firm for full authorisation while your previous TPR firm is in SRO.

Page updates

26/01/2022: Information changed Minor edit to the final sentence