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SUP 10C.13 1Variation of conditional and time-limited approvals

Purpose

SUP 10C.13.1G

This section deals with variation of a conditional approval at the:

  1. (1)

    request of the firm; and

  2. (2)

    initiative of the FCA.

SUP 10C.13.2G
  1. (1)

    In particular, this section sets out the FCA’s policies about varying conditional approvals at the request of a firm, as required by section 63ZD of the Act (Statement of policy relating to conditional approval and variation).

  2. (2)

    This section does not deal with the FCA’s policies on varying a condition on its own initiative. DEPP 8 deals with that.

Variation of a conditional approval at the request of the firm: general description

SUP 10C.13.3G

A firm may apply to the FCA to change a conditional approval. The changes for which a firm may apply are:

  1. (1)

    a variation of the condition;

  2. (2)

    removal of the condition; and

  3. (3)

    the imposition of a new condition.

SUP 10C.13.4G
  1. (1)

    If a firm is applying for a change of the type described in SUP 10C.13.3G(1) or SUP 10C.13.3G(2), the firm should apply to the FCA if the FCA imposed that condition, even if the approval was given by the PRA.

  2. (2)

    If the firm is applying for the imposition of a new condition, the firm should apply to the FCA if the approval to which the application relates was given by the FCA.

  3. (3)

    In other cases, the application should be to the PRA.

SUP 10C.13.5G

The power to apply for a variation does not apply to a time limitation.

Variation of a conditional approval at the request of the firm: process

SUP 10C.13.6D

An application by a firm to the FCA under section 63ZA of the Act (Variation of senior manager's approval at request of relevant authorised persons) must be made by using Form I (SUP 10C Annex4D).

SUP 10C.13.7G
  1. (1)

    An application under SUP 10C.13.6D should be accompanied by a statement of responsibilities for the approved person concerned.

  2. (2)

    See SUP 10C.11 (Statements of responsibilities) for more details.

SUP 10C.13.8G

SUP 10C.15 (Forms and other documents and how to submit them to the FCA) explains how applications to vary a conditional approval should be submitted.

SUP 10C.13.9G

The FCA has until the end of the period of three months from the time it receives a properly completed application to consider the application and come to a decision.

SUP 10C.13.10G

The FCA must either grant the application or, if it proposes not to grant an application, issue a warning notice (see DEPP 2).

SUP 10C.13.11G

The FCA may refuse an application if it appears to the FCA that it is desirable to do so to advance one or more of its operational objectives.

SUP 10C.13.12G

Before making a decision to grant the application or give a warning notice, the FCA may ask the firm for more information. If it does this, the three-month period in which the FCA must determine a completed application:

  1. (1)

    will stop on the day the FCA requests the information; and

  2. (2)

    will start running again on the day on which the FCA finally receives all the requested information.

SUP 10C.13.13G

Whenever it grants an application, the FCA will confirm this in writing to all interested parties.

SUP 10C.13.14G

If the FCA proposes to refuse an application, it must follow the procedures for issuing warning notices and decision notices to all interested parties. The requirements relating to warning and decision notices are in DEPP 2.

SUP 10C.13.15R

A firm notifying the FCA of its withdrawal of an application for variation of an approval must use Form B (SUP 10A Annex 5R).

SUP 10C.13.16G

SUP 10C.15 (Forms and other documents and how to submit them to the FCA) explains how notifications of withdrawal of an application should be submitted.

SUP 10C.13.17G

Under section 61(5) of the Act (Determination of applications), as applied by section 63ZA(8) of the Act (Variation of senior manager’s approval at request of relevant authorised person), the firm may withdraw an application only if it also has the consent of:

  1. (1)

    the approved person; and

  2. (2)

    the person by whom the approved person is employed if this is not the firm making the application.

Variation of a conditional approval at the request of the firm: policy

SUP 10C.13.18G

The FCA’s policy on approving or refusing a request for a variation is the same as it is for imposing conditions on approval (see SUP 10C.12 (Conditional and time-limited approvals)).

SUP 10C.13.19G
  1. (1)

    An example of a situation in which the FCA would consider varying a condition would be a competency-related condition which required a training course to be completed (see, in particular, SUP 10C.12.24G for this type of condition).

  2. (2)

    If the firm later concludes that a different course would be better, the firm may apply for a variation of the condition.

SUP 10C.13.20G

Another example of a situation in which the FCA would consider varying a condition would be a condition relating to a remedial programme (see SUP 10C.12.41G). If the remedial programme is changed, it may be appropriate to change the condition.

SUP 10C.13.21G
  1. (1)

    Other examples of where the FCA may agree to removing a condition are where:

    1. (a)

      the approved person's role has changed so that the reason for the condition originally being imposed no longer applies; or

    2. (b)

      new information has come to light that removes any doubt about the approved person's competence so a condition is no longer necessary.

  2. (2)

    For example, the FCA may agree to removing a condition about the scope of the approved person's role of the type described in SUP 10C.12.39G.

SUP 10C.13.22G

See SUP 10C.12.38G for another example of a case where the FCA may agree to removing a condition (condition imposed pending reorganisation).

Variation of a conditional approval: action at the initiative of the FCA

SUP 10C.13.23G

Under section 63ZB of the Act (Variation of senior manager's approval on initiative of regulator), the FCA may vary an approval given by the FCA or the PRA for the performance of a designated senior management function if the FCA considers that it is desirable to do so to advance one or more of its operational objectives.

SUP 10C.13.24G

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.

SUP 10C.13.25G

More information about the FCA's powers to vary a condition on its own initiative, including its policy on using these powers, can be found in DEPP 8.