Financial Services and Markets Bill - continued        House of Lords

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  PART IV
  PERMISSION TO CARRY ON REGULATED ACTIVITIES
 
Application for permission
Application for permission.     38. - (1) An application for permission to carry on one or more regulated activities may be made to the Authority by-
 
 
    (a) an individual;
 
    (b) a body corporate;
 
    (c) a partnership; or
 
    (d) an unincorporated association.
      (2) An authorised person may not apply for permission under this section if he has a permission-
 
 
    (a) given to him by the Authority under this Part, or
 
    (b) having effect as if so given,
       which is in force.
 
      (3) An EEA firm may not apply for permission under this section to carry on a regulated activity which it is, or would be, entitled to carry on in exercise of an EEA right, whether through a United Kingdom branch or by providing services in the United Kingdom.
 
      (4) A permission given by the Authority under this Part or having effect as if so given is referred to in this Act as "a Part IV permission".
 
The threshold conditions.     39. - (1) "The threshold conditions", in relation to a regulated activity, means the conditions set out in Schedule 6.
 
      (2) In giving or varying permission, or imposing or varying any requirement, under this Part the Authority must ensure that the person concerned will satisfy, and continue to satisfy, the threshold conditions in relation to all of the regulated activities for which he has or will have permission.
 
      (3) But the duty imposed by subsection (2) does not prevent the Authority, having due regard to that duty, from taking such steps as it considers are necessary, in relation to a particular authorised person, in order to secure its regulatory objective of the protection of consumers.
 
 
Permission
Giving permission.     40. - (1) "The applicant" means an applicant for permission under section 38.
 
      (2) The Authority may give permission for the applicant to carry on the regulated activity or activities to which his application relates or such of them as may be specified in the permission.
 
      (3) If the applicant-
 
 
    (a) in relation to a particular regulated activity, is exempt from the general prohibition as a result of section 37(1) or an order made under section 36(1), but
 
    (b) has applied for permission in relation to another regulated activity,
       the application is to be treated as relating to all the regulated activities which, if permission is given, he will carry on.
 
      (4) If the applicant-
 
 
    (a) in relation to a particular regulated activity, is exempt from the general prohibition as a result of section 280(2) or (3), but
 
    (b) has applied for permission in relation to another regulated activity,
       the application is to be treated as relating only to that other regulated activity.
 
      (5) If the applicant-
 
 
    (a) is a person to whom, in relation to a particular regulated activity, the general prohibition does not apply as a result of Part XIX, but
 
    (b) has applied for permission in relation to another regulated activity,
       the application is to be treated as relating only to that other regulated activity.
 
      (6) If it gives permission, the Authority must specify the permitted regulated activity or activities, described in such manner as the Authority considers appropriate.
 
      (7) The Authority may-
 
 
    (a) incorporate in the description of a regulated activity such limitations (for example as to circumstances in which the activity may, or may not, be carried on) as it considers appropriate;
 
    (b) specify a narrower or wider description of regulated activity than that to which the application relates;
 
    (c) give permission for the carrying on of a regulated activity which is not included among those to which the application relates.
Imposition of requirements.     41. - (1) A Part IV permission may include such requirements as the Authority considers appropriate.
 
      (2) A requirement may, in particular, be imposed-
 
 
    (a) so as to require the person concerned to take specified action; or
 
    (b) so as to require him to refrain from taking specified action.
      (3) A requirement may extend to activities which are not regulated activities.
 
      (4) A requirement may be imposed by reference to the person's relationship with-
 
 
    (a) his group; or
 
    (b) other members of his group.
      (5) A requirement expires at the end of such period as the Authority may specify in the permission.
 
      (6) But subsection (5) does not affect the Authority's powers under section 42 or 43.
 
 
Variation and cancellation of Part IV permission
Variation etc. at request of authorised person.     42. - (1) The Authority may, on the application of an authorised person with a Part IV permission, vary the permission by-
 
 
    (a) adding a regulated activity to those for which it gives permission;
 
    (b) removing a regulated activity from those for which it gives permission;
 
    (c) varying the description of a regulated activity for which it gives permission;
 
    (d) cancelling a requirement imposed under section 41; or
 
    (e) varying such a requirement.
      (2) The Authority may, on the application of an authorised person with a Part IV permission, cancel the permission.
 
      (3) The Authority may refuse an application under this section if it appears to it-
 
 
    (a) that the interests of consumers, or potential consumers, would be adversely affected if the application were to be granted; and
 
    (b) that it is desirable in the interests of consumers, or potential consumers, for the application to be refused.
      (4) If, as a result of a variation of a Part IV permission under this section, there are no longer any regulated activities for which the authorised person concerned has permission, the Authority must, once it is satisfied that it is no longer necessary to keep the permission in force, cancel it.
 
      (5) The Authority's power to vary a Part IV permission under this section extends to including any provision in the permission as varied that could be included if a fresh permission were being given in response to an application under section 38.
 
 
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