If an authorised firm wants to change or add to its regulated activities it can apply to us for a ‘variation of permission’ (VOP).
Part 4A of the Financial Services and Markets Act (FSMA) shows our requirements for varying permissions.
Your firm’s ‘scope of permission’ should accurately show the activities it carries out.
You should review your current permission on the Financial Services Register and decide whether you need to vary it if you want to:
- start a new line of business
- start a new regulated activity
- add a new product or client type to your business line
If your firm is regulated or dual-regulated by us, and you want to add any of the activities:
- accepting deposits
- effecting contracts of insurance
- carrying out a contract of insurance
you should apply for a variation of permission through the Prudential Regulation Authority (PRA).
When you need to apply
Your firm cannot start the activities that you have requested until we have approved your application. If you do, this is a breach of our rules and we can take enforcement action.
In the same way, if your firm stops a business line or wants to vary, reduce or restrict the scope of its Permission, you should think about whether you should:
- remove the regulated activity in question
- change the client or product/investment types
- add or delete a limitation or requirement
By increasing the scope of your permission, your fees may go up, and by reducing it they may come down.
Before you apply, you should note that your firm's financial category, your financial resource requirement and your reporting requirements may change to reflect the new permission scope.