Treasury has published a policy paper outlining its intention to streamline the process FCA must apply to cancel a firm’s authorisation. The process will apply where firms are no longer carrying on regulated activities. It will not apply where FCA believes a firm is no longer carrying on any regulated activity although the firm has not applied to cancel its permission and where FCA believes the firm is failing or is likely to fail to meet the Threshold Conditions – in these cases the current process will continue to apply.
The new process should apply where a firm does not pay fees, file returns or keep its information up to date, and does not reply to FCA correspondence. There would be a process to allow firms whose authorisations are cancelled to restore their authorisation if certain conditions are met.
Where FCA cancels an authorisation, it would also cancel any related individual approvals.
The Government intends to introduce legislation to put this process in place when Parliamentary time allows.