The FCA has reminded consumer credit firms of their obligation to regularly review their regulatory permissions to make sure they are up to date and are removed if no longer needed.
The FCA has said it expects consumer credit firms to notify it of any material changes in a timely manner. The regulator notes that it has the power to cancel a firm’s Part 4A permission if a regulated activity has not been carried out within the past 12 months.
If a firm has a regulatory permission, but has not carried out any regulated activities in the past 12 months and has no plans to do so, it should apply for cancellation of its permission via Connect. If it no longer needs some of its permissions, it should apply for a variation of permission via the same route.
The FCA says it is important for firms to review and update its permissions to ensure they:
- Continue to meet the Threshold Conditions
- Demonstrate effective oversight of their business
- Meet their obligations under SM&CR
- Provide customers with accurate information.
Firms are required to provide an annual attestation that their information on the Financial Services Register is correct. Under the Financial Services Bill, the FCA will have new powers to serve notice on firms it believes are not carrying out regulated activities, requesting a written response within 14 days. Failure to respond will result in a second – public – notice after which the FCA may vary or cancel the firm’s permissions.
It is very important that consumer credit firms regularly check their regulatory permissions to ensure they are accurate and complete all relevant applications as required by the FCA.
To find out more about this or any other compliance related issue, contact a member of our expert team on 01925 765777, or email us at firstname.lastname@example.org.