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).
This section does not deal with the FCA’s policies on varying a condition on its own initiative. DEPP 8 deals with that.
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.
In other cases, the application should be to the PRA.
The power to apply for a variation does not apply to a time limitation.
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.
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.
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:
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.
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:
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).
Other examples of where the FCA may agree to removing a condition are where:
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.
The FCA may vary an approval by:
imposing a condition;
varying a condition;
removing a condition; or
limiting the period for which the approval is to have effect.
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.