March 1, 2021

Volume XI, Number 60

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March 01, 2021

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February 26, 2021

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FCA Reminds UK Firms to Regularly Review Their Regulatory Permission

On January 18, the UK’s Financial Conduct Authority (FCA) published a statement reminding UK-authorized firms of their obligations to periodically review their regulatory permissions under Part 4A of the Financial Services and Markets Act 2000 to ensure they are up-to-date or otherwise removed where they are not needed (the Statement).

Under the Financial Services Bill 2019-21 (which is currently making its way through Parliament), the FCA will be granted new powers to act swiftly where it considers that a firm is no longer carrying on regulated activities. Within the new powers, the FCA will be able to serve notice on the firm and request a written response within 14 days. If the firm does not respond, the FCA will publish a second public notice stating it appears that the firm is no longer carrying on a regulated activity. It can then alter or cancel the firm’s permissions after one month.

The FCA instructs firms with a Part 4A permission who have not carried out any regulated activities for 12 months or more, and have no current plans to do so, to apply for cancellation using the FCA’s online portal — ‘Connect’. If a firm has Part 4A permission and has not used and no longer requires certain permissions, it is advised by the FCA to apply to remove the permission by completing and submitting a variation of permission application using Connect.

In the Statement, the FCA also reminds firms of their obligation to provide an annual attestation confirming that the information held about the firm on the Financial Services Register is accurate and up-to-date.

See the FCA Statement.

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©2020 Katten Muchin Rosenman LLPNational Law Review, Volume XI, Number 22
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About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666
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