What powers does the FCA have regarding authorisation?

The FCA (Financial Conduct Authority) possesses the authority to both grant and withdraw Part 4A authorisation, which is a critical aspect of its regulatory functions. Part 4A authorisation is necessary for firms that wish to conduct regulated activities in the UK. This dual power enables the FCA to ensure that only those firms that meet specific standards—particularly in terms of prudence, conduct, and integrity—are allowed to operate within the financial services sector.

By having the ability to withdraw authorisation, the FCA can take action against firms that no longer meet the necessary criteria or that pose a risk to consumers or the financial system. This power is essential for maintaining the integrity of the market and protecting consumer interests, as it allows the FCA to respond effectively to emerging risks and compliance failures. The capacity to both grant and withdraw authorisation is fundamental for regulatory oversight and contributes significantly to the FCA's mandate of ensuring that financial markets operate in a fair and transparent manner.