The Financial Conduct Authority (FCA) has released draft guidance on new powers which allow it to quickly remove regulatory permissions that are not used by financial services firms, which will limit scams and improve transparency for consumers.
The power, which was granted via the Financial Services Act 2021, will allow the FCA to start the cancellation process as soon as it considers the permissions are not being used, and will serve 14 days’ notice on a firm.
The regulator will then be able to vary or cancel permissions after one month.
It added that the change would help prevent scams and improve transparency to consumers as incorrect or outdated permissions can be misleading.
Companies on the financial services register, which this power applies to, are required to confirm whether information on the register is accurate on an annual basis.
FCA’s executive director of enforcement and market oversight Mark Steward said: “We want to use this power to take quicker action to prevent consumers being misled. It is part of our transformation and drive to be more assertive, drawing on an innovative approach and using new streamlined processes to make important regulatory interventions.”
He added: “Firms can and should apply to have their permissions cancelled if they no longer plan to use them but many fail to do so.
“We understand that business models may evolve over time and there may be valid reasons why regulatory permissions are not being used, but unless firms notify us and keep their permissions up to date, they will risk losing market access.”
The consultation on the guidance will run until 29 October.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
