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FCA considering changes to process for cancellation of advice firms’ permissions

10/01/2017

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The Commissioner found that the FCA had not acted unreasonably in approving the firm’s application for cancellation of permissions. However, it suggested that the FCA consider requiring firms seeking to cancel their permissions to demonstrate that they have notified their professional indemnity insurance provider of all outstanding complaints (internal or external) against them, both when they submit their cancellation application and when the application is assessed by the FCA. The Commissioner indicated the FCA had accepted this suggestion and was considering adding steps to its processes to enhance the protection of consumers in future.

It is therefore possible that firms seeking to cancel their authorisation will in future need to provide the FCA with greater comfort in respect of complaints than is currently the case. Firms intending to deauthorise should factor this into their preparations.

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