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SUP 7.2 The FCA's powers to set individual requirements and limitations on its own initiative5

SUP 7.2.1G

The FCA5 has the power under sections 55J and 55L5of the Act to vary a firm's Part 4A permission and/or impose a requirement on a firm5 Varying a firm's Part 4A permission5 includes imposing a limitation on that Part 4A permission.5

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SUP 7.2.2G

The circumstances in which the FCA5 may vary a firm's Part 4A permission5 on its own initiative or impose a requirement on a firm5 under sections 55J or 55L5 of the Act include where it appears to the FCA5 that:

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  1. (1)

    one or more of the threshold conditions for which the FCA is responsible5 is or is likely to be no longer satisfied; or

  2. (2)

    it is desirable to vary a firm's permission in order to meet any of the FCA's5 statutory objectives under the Act; or53

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  3. (3)

    a firm has not carried out a regulated activity to which its Part 4A permission applies for a period of at least 12 months.5

SUP 7.2.3G

The FCA5 may also use its own-initiative powers5 for enforcement purposes. EG 82 sets out in detail the FCA's5 powers under sections 55J and 55L of the Act5 and the circumstances under which the FCA5 may use its own-initiative powers5 in this way, whether for enforcement purposes or as part of its day to day supervision of firms. This chapter provides additional guidance on when the FCA5 will use these powers for supervision purposes.

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SUP 7.2.4G

The FCA5 may use its own-initiative powers5 only in respect of a firm's 5Part 4A permission5; that is, a permission granted to a firm under sections 55E or 55F5 of the Act (Giving permission) or having effect as if so given. In respect of an incoming EEA firm, an incoming Treaty firm, or a UCITS qualifier, this power applies only in relation to any top-up permission that it has. There are similar but more limited powers under Part XIII of the Act in relation to the permission of an incoming EEA firm or incoming Treaty firm under Schedules 3 or 4 to the Act (see EG 8.26 to EG 8.27 ).2

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SUP 7.2.4AG

5The FCA will consult the PRA before using its own-initiative powers in relation to a PRA-authorised person, or a member of a group which includes a PRA-authorised person.

SUP 7.2.4BG

5In the case of a dual-regulated PRA-authorised person, the FCA may exercise its own-initiative variation power to add a new regulated activity other than a PRA-regulated activity to those activities already included in the firm's Part 4A permission, or to widen the description of a regulated activity, only after consulting with the PRA.

SUP 7.2.5G

If the FCA5 exercises its own-initiative powers5, it will do so by issuing a supervisory notice. The procedure that will be followed is set out in DEPP 22.

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SUP 7.2.6G

A firm has a right of referral to the Tribunal4 in respect of the FCA exercising its own-initiative powers on5 the firm's Part 4A permission.5

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