When you obtain authorisation from the Financial Conduct Authority (FCA) you are permitted to conduct certain regulatory activities under the specific permissions granted to you by the FCA.
Different permissions are necessary for different activities, for example you cannot make introductions for customers looking to take out a mortgage if you only have permissions relating to insurance.
A Variation of Permission (or ‘VOP’) is an application to the FCA that is used to request additional permissions, the removal of certain permissions and the removal or introduction of limitations on the permissions you already hold.
Such an application may be necessary if you want to start a new line of business, start conducting a new regulated activity or add a new product or client type to your business line.
The process is not dissimilar from applying for authorisation however a Variation of Permissions requires updated regulatory documents such as a new Regulatory Business Plan which would outline why the firm can, and wishes to, conduct this new activity. You should also be aware that different compliance documentation may be required to help ensure that you are equipped to satisfy any new requirements resulting from the change to your permissions.
As well as this, other requirements may be captured that affect the amount of information that must be provided. For example, a Limited Scope firm under the Senior Managers and Certification Regime (SM&CR) may only have one Senior Management Function holder (SMF). By adding additional permissions, the firm may no longer be a Limited Scope firm and consequently may need to seek approval for a number of its directors or other senior managers to be appointed by the FCA as SMFs under the SM&CR.
Similarly, as a result of the variation, your fees, financial category, financial resource requirement and reporting requirement may change.
You cannot start the activities that you have requested under the Variation of Permissions application until your application is approved by the FCA.
How Can Scott Robert help?
Scott Robert has been supporting financial service firms since 2008. In that time, we have helped an array of firms to successfully vary their permissions and prepare for the impact that variation would have on their business.
We employ a team of compliance consultants who are both highly experienced and expertly skilled. We specialise in providing our clients with solutions to often complex regulatory requirements and compliance needs.
When providing our variation of permission support, we help your throughout this process by completing the online application, drafting your revised business plan and providing a suite of compliance documents to help you remain compliant after successfully varying your permissions. We’re also on hand throughout the process and afterwards to advice and support you and your firm.
If you want to know more, speak to one of our experts today for confidential advice by calling 0161 413 2796 to find out more.