Category: Compliance & AML · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed June 2026
The removal of an authorised firm’s Part 4A Permission — either on the firm’s own application, where it has ceased or never started regulated activity, or on the FCA’s initiative where the firm no longer meets the Threshold Conditions.
Cancellation of Permission is the formal removal of a firm’s regulated activity authorisation. On cancellation the firm ceases to be authorised and must not carry on the previously permitted activities. The firm’s name is removed from the Financial Services Register’s authorised list (though enforcement history remains visible).
FSMA section 55H (firm-initiated VOP, which can include cancellation), section 55I (firm-initiated cancellation specifically), section 55J (regulator-initiated variation or cancellation), and section 33 (general prohibition on unauthorised activity).
A firm winding down regulated activity applies via Connect for cancellation, evidencing run-off arrangements, complaint handling, return of client money, and PII run-off cover (typically six years of run-off to match the FOS / Limitation Act window). The FCA may use section 55J cancellation as an enforcement outcome where a firm seriously and repeatedly fails to meet Threshold Conditions, or where directors are not fit and proper. The “Use it or lose it” power was introduced under FSMA section 55J following the Financial Services Act 2021, allowing the FCA to cancel a firm’s permissions more efficiently if it has not been undertaking regulated activity.
The Streamlined Cancellation Process applies where a firm has clearly ceased activity. The FCA also has the Section 39 power to cancel an Appointed Representative arrangement — though strictly the AR’s permission flows from the Principal, so it is the Principal that withdraws the AR designation.
A firm acquiring another broker may, after a TUPE-style transfer and run-off period, apply to cancel the target’s Part 4A Permission. The application typically goes alongside an undertaking to maintain PII run-off cover for six years to protect customers against subsequent claims.
Financial Services and Markets Act 2000, sections 33, 55H, 55I, 55J. Financial Services Act 2021, section 8 (“Use it or lose it”). FCA Handbook, SUP 6.
By Matt Bartlett, Director, on 2026-06-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
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