Variation of Permissions
Keeping your FCA authorisation aligned with your business activities is essential to maintaining compliance and avoiding penalties.
What you need to know
What is a Variation of Permission?
A Variation of Permission (VOP) is the formal process for changing, expanding, or reducing the regulatory permissions your firm holds under the Financial Conduct Authority (FCA). This ensures your authorisation reflects your current business activities.
When do you need a VOP?
You’ll need to apply for a VOP if your business model changes, you introduce new financial services, or you no longer require certain permissions. Keeping your permissions up to date is a regulatory requirement.
Why is it important?
Operating with incorrect or outdated permissions can lead to serious consequences, including regulatory breaches, fines, or enforcement action. Staying compliant helps protect your firm’s reputation and operational integrity.
What does the FCA look for?
The FCA will review your firm’s governance, risk management, and compliance frameworks before approving a VOP. Your application must include a strong justification and supporting evidence that aligns with FCA expectations, making expert advice highly valuable.
Reasons for applying for a VOP
Expand your services
Adding new regulated activities, such as offering finance, insurance distribution, or investment advice.
Remove existing permissions
If you no longer carry out certain regulated activities and want to reduce regulatory obligations.
Change your business model
For example, transitioning from a credit broker to a lender or becoming an Appointed Representative (AR) of a Principal Firm.
Meet FCA expectations
If the FCA requires an update to your permissions due to regulatory changes or compliance reviews
Applying for a VOP requires clear justification, supporting evidence, and alignment with FCA rules, making expert guidance essential.
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