Part 4A Permission

~3 min read

Category: Compliance & AML · Reviewed by Jake Leat, Associate Director · Last reviewed June 2026

In short: The form of authorisation granted by the FCA under Part 4A of FSMA, naming each regulated activity, customer type and investment instrument that the firm is permitted to undertake, subject to any limitations or requirements.

Definition

A Part 4A Permission is the statutory authorisation under FSMA Part 4A that allows a firm to perform regulated activities. The permission is granular: it lists the specific regulated activities (defined in the Regulated Activities Order — RAO), the customer types (retail, professional, eligible counterparty), the investment instruments (general insurance contracts, pure protection contracts, etc.) and any limitations or requirements imposed.

Legal / Regulatory basis

FSMA Part 4A, sections 55A–55Z3. Part 4A replaced the previous Part IV permissions framework from 1 April 2013 when the FSA was split into the FCA and PRA.

How it works in practice

A firm cannot carry on a regulated activity unless authorised. Authorisation is granted on application via Connect, with the FCA assessing the Threshold Conditions and the business model. The resulting Part 4A Permission shows on the Financial Services Register and is the document the firm must operate within. Carrying on activity outside the permission (e.g. arranging a class of insurance not listed) is a criminal offence under FSMA section 23 (the general prohibition).

Common variations

A firm with permissions across multiple sectors carries a longer permission profile. Lloyd’s brokers have additional permission characteristics. Appointed Representatives operate under the permission of their Principal — they have no Part 4A Permission of their own.

Example

Apex’s Part 4A Permission covers regulated activities including arranging (bringing about) deals in investments in respect of general insurance contracts, advising on investments in respect of general insurance contracts, dealing in investments as agent in respect of general insurance contracts, and credit broking (in connection with premium finance). The detail is on the Financial Services Register under FRN 724952.

References

Financial Services and Markets Act 2000, Part 4A, sections 55A–55Z3. Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544). FCA Handbook, PERG (Perimeter Guidance).

Last reviewed

By Apex Insurance Brokers on 2026-06-11.

This entry is part of the Apex Insurance Wiki. Last reviewed by Apex Insurance Brokers 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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