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DEPP 8.2 Use of the own-initiative variation of approval power: general

DEPP 8.2.1G

1The FCA may use the own-initiative variation of approval power where it considers that it is desirable to do so to advance one or more of its operational objectives. The FCA will assess this on a case-by-case basis, taking into account the specific circumstances of the firm and the SMF manager.

DEPP 8.2.2G

When considering the use of this power to deal with a particular concern, the FCA will have regard to the range of regulatory tools that are available. The FCA will consider dealing with any concerns informally through discussion and agreement with the firm and the SMF manager, instead of using the own-initiative variation of approval power.

DEPP 8.2.3G

The power to impose a conditional or time-limited approval does not depend on the SMF manager being unfit without that condition or time limitation. The FCA can impose a condition or time limitation even if the candidate would still be fit and proper without it. Conversely, where an SMF manager is not fit and proper but might be if a condition or time limitation is imposed, the FCA is not obliged to impose a condition or time limitation, and may take the view that a prohibition order or withdrawal of approval is the appropriate course of action.

DEPP 8.2.4G

The FCA may vary an approval by:

  1. (1)

    imposing a condition;

  2. (2)

    varying a condition;

  3. (3)

    removing a condition; or

  4. (4)

    limiting the period for which the approval is to have effect.

DEPP 8.2.5G

The FCA may use the own-initiative variation of approval power in a wide range of circumstances. A number of examples are set out in DEPP 8.3. These are not exhaustive.

DEPP 8.2.6G

The circumstances which will lead to a condition or time limitation being imposed on a candidate for an SMF manager role will, where appropriate, also lead to an existing SMF manager’s approval being varied. SUP 10C is therefore relevant to the FCA’s use of the own-initiative variation of approval power.