FCA vows swifter action to tackle unused permissions

Consumers are often blissfully unaware of the complexities of the authorisations regime. Ben Rees comments on the regulator's latest initiative to reduce the possibility of retail customers misunderstanding or being misled about their exposure to financial risk.

Ben Rees is Keller Lenkner UK's technical director, in the firm's Investment Fraud and Mis-selling group. He has substantial experience in financial as well as legal services and specialises in regulatory matters. Over the past decade, Ben has held a number of senior manager, controlled and regulated functions with both the FCA and the Solicitors Regulation Authority.

The Financial Conduct Authority recently announced that it will use new powers to more rapidly cancel or amend firms' permissions to carry out regulatory activities. [1] Where it believes that a firm is not using a permission, the FCA will provide two warnings. In the absence of a satisfactory response or action, the regulator will be able to cancel or amend the permission just 28 days after the first warning.