The FCA last week updated their rules in relation to being able to vary or cancel a firm’s permissions to carry out FCA-regulated activities if it hasn’t used them so that they can update the Register and reduce the risk of harm to consumers. Previously they had to wait 12 months before any variation or cancellation in some situations.
They now have a new power to cancel or vary permissions without the firm applying or the FCA getting the firm’s consent. They can use this new power if they consider that a firm is currently carrying on none of the regulated activities it has permission for. They no longer have to wait 12 months.
The new power is set out in Schedule 6A to FSMA, which also provides a more streamlined procedure for the FCA to follow when using this new power and makes it possible for them to reverse or annul their decisions to use it.