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AUTH 1.3 The Authorisation manual

AUTH 1.3.1G
  1. (1)

    The Authorisation manual (AUTH), the Supervision manual (SUP), the Enforcement manual (ENF) and the Decision making manual (DEC) form the Regulatory Processes part of the Handbook.

  2. (2)

    AUTH sets out the relationships between the FSA and applicants for Part IV permission and persons wishing to exercise EEA rights, Treaty rights or UCITS Directive rights. SUP sets out the relationship between the FSA and authorised persons (referred to in the Handbook as firms). As a general rule, material that is of continuing relevance after authorisation is in SUP.

  3. (3)

    ENF describes the FSA's enforcement powers under the Act and sets out its policies for using these powers.

  4. (4)

    DEC is principally concerned with, and sets out, the FSA's decision making procedures for decisions that involve the giving of statutory notices.

AUTH 1.3.2G

The procedures for applying for Part IV permission, for approval of a person under section 59 of the Act and for qualifying for authorisation under Schedules 3, 4 and 5 to the Act are derived from the Act. AUTH gives guidance on the Act and the FSA's procedures. It also contains directions to applicants on the manner of making applications (see AUTH 3.9.3 D and AUTH 6.3.2 G) and rules on fees (see AUTH 4 (Authorisation fees)).1

AUTH 1.3.3G
  1. (1)

    A Reader's Guide gives an introduction to the Handbook and is a key navigational aid for Handbook users. The guide explains the format, layout and workings of the Handbook, including the status and definitions of its components such as directions, rules and guidance.

  2. (2)

    We recommend that readers consult this Guide before or while reading AUTH.

AUTH 1.3.4G
  1. (1)

    The Act, and the secondary legislation made under the Act, is complex. Although AUTH gives guidance to those considering or seeking authorisation, it does not aim to be exhaustive.

  2. (2)

    References have been made to relevant provisions in the Act or secondary legislation. However, since reproducing an entire statutory provision would sometimes require a lengthy quotation, or considerable further explanation, many provisions of the Act, or secondary legislation made under the Act, are summarised. For the precise details of the legislation, readers of the manual should, therefore, refer to the Act and the secondary legislation itself, as well as the manual.

  3. (3)

    The Act and the Explanatory Notes are available from the Stationery Office (the Act, ISBN 0-10-540800-X, £21.70; and the Explanatory Notes, ISBN 0-10-560800-9, £14.50). Secondary legislation made by the Treasury under the Act can be obtained from the Stationery Office or can be accessed through the Treasury's website (

AUTH 1.3.5G

Guidance on the Act or secondary legislation made under the Act represents the FSA's view and does not bind the Courts. In the event of any discrepancy between the manual and the Act or that secondary legislation, the provisions of the Act or the secondary legislation prevail. It remains each person's responsibility to ensure that, at all times, his activities comply with the Act and with other relevant provisions (including general requirements such as company law or consumer credit) and to take all necessary steps to satisfy himself of this, including where necessary by seeking his own legal advice.

AUTH 1.3.6G

AUTH uses words and phrases that have specific meanings in the Handbook or in legislation; these may be different from, or more precise than, their usual dictionary meanings. Defined terms used in the text of the Handbook are shown in italics. For the meanings of defined terms used in AUTH, see the Glossary (either the extracts at the end of AUTH or the consolidated Glossary). It is essential that readers refer to these definitions.

AUTH 1.3.7G

AUTH 1.3.9 G summarises AUTH and parts of PERG3. Readers should note that in a cross-reference, as explained in Chapter 66 of the Reader's Guide, the code letters of the manual or sourcebook immediately precede the chapter number. For example, AUTH 1 is the first chapter of the Authorisation manual.

AUTH 1.3.8G

The FSA is keen to encourage an interactive authorisation process. With this in mind, AUTH gives specific contact points in the FSA from which an applicant can get help with questions about its application. To help readers, the contact points are listed at AUTH 1.9.2 G.

AUTH 1.3.9G

Summary of AUTH and parts of PERG3

This table belongs to AUTH 1.3.7 G


Applicable to:


PERG 2:3

Authorisation and regulated activities


a person wishing to find out whether it needs to be authorised (or is an exempt person).

the Act, the Regulated Activities Order and the Exemption Order.


Applications for Part IV permission

an applicant for Part IV permission.

how the FSA will exercise the powers granted to it in Part IV of the Act to determine and, if appropriate, grant an application for Part IV permission.


Authorisation Fees

an applicant for Part IV permission.

the fees the FSA will levy on applicants for Part IV permission.


Qualifying for authorisation under the Act

1. an EEA firm wishing to exercise its EEA right and establish a branch in, or provide cross border services into, the United Kingdom;

how an EEA firm, a Treaty firm or a UCITS qualifier can qualify for authorisation under the Act.

2. a Treaty firm wishing to exercise its Treaty rights;

3. a prospective UCITS qualifier.


Approved persons

1. an applicant for Part IV permission seeking approval for a person to perform a controlled function under arrangements to be entered into by the firm or its contractors (including appointed representatives);

2. a candidate.

1. the controlled functions that the FSA has specified; and.

2. how the FSA will exercise the powers given to it in Part V of the Act to require firms to obtain prior approval for persons who will perform controlled functions.

Note: EEA firms, Treaty firms and UCITS qualifiers should refer to SUP 10 (Application).

PERG 7:3

Periodical publications, news services and broadcasts: application for certification


anyone involved in publishing periodicals, or in providing news services or broadcasts, who gives (or proposes to give) advice about securities or contractually based investments.

1. whether the person will be carrying on the regulated activity of advising on investments; and

2. how the FSA will exercise its power to give certificates.


Determining applications

1. applicants for Part IV permission generally;

1. the procedures which the FSA will follow when granting an application; and

2. an EEA firm or a Treaty firm that has submitted an application for approval of a person under the approved persons regime;

2. a summary of the FSA's decision making procedures for:

(a) refusing, or proposing to refuse, an application for Part IV permission or an application for approval under the approved persons regime; or

3. a candidate.

(b) granting, or proposing to grant, an application for Part IV permission subject to limitations or requirements not applied for or with a narrower description of regulated activity than that to which the application relates.2