When an SFC licence needs a regulated activity variation

An SFC licence authorizes specified regulated activities. If a firm wants to conduct a different activity, it cannot assume that a related existing licence covers it. The question is whether the work falls within the activity types listed on the corporation's licence, and whether the relevant conditions permit the work. When the firm plans to add or remove an activity, the SFO provides a variation process.

Adding an activity

A licensed corporation that wants to add a regulated activity applies to the SFC for a variation under section 127(1) of the SFO. The SFC's application procedure lists additions by regulated activity and directs firms to file through WINGS-LIC. Until approval, the new line stays off limits. The law treats an application to add an activity as an application for a licence in relation to that activity. The SFC therefore considers the firm's ability to conduct the proposed business, including whether it has the appropriate arrangements and people to do so. That is a full application review.

The planned activity should not begin while the application is pending. The published activity on the licence is the regulatory permission. A firm's commercial description, internal project name, or existing relationship with a client does not expand that permission. Read the statutory activity definitions and the proposed service carefully before deciding which type is needed.

Removing an activity

A corporation that stops one activity but continues others must apply to reduce the regulated activities on its licence under section 127. Current SFC application guidance distinguishes this from stopping the final activity: where the corporation intends to cease its last regulated activity, it should notify the SFC of the intended change rather than submit a reduction application. A firm that is ceasing business should also follow the SFC's cessation and revocation instructions. Give notice as soon as reasonably practicable and no later than seven business days before the intended cessation.

Corporate licence changes and individual licence changes

A corporation's permission and an individual's licence are separate. A firm adding a regulated activity needs its corporate licence varied. A licensed representative or responsible officer may also need an individual variation or an additional accreditation so the person's approved activities and principal match the work they will do. An individual cannot rely on the corporation's permission as a substitute for their own required approval. Check both sides of the arrangement before launch.

Application steps

• Describe the actual service, transactions, clients, and operational role the firm proposes to take on.
• Map that work to the SFO's regulated activity definitions and identify whether the change adds or removes an activity.
• Check whether individuals need a corresponding licence variation, new accreditation, or responsible officer approval.
• Submit the required application through WINGS-LIC and provide the supporting information requested by the SFC.
• Wait for the SFC's decision and updated permission before carrying on the added regulated activity.

The SFC's application page notes that an approved corporate variation may require the old licence to be returned for amendment or cancellation. It also lists forms and supplements that may apply. Requirements depend on the activity and applicant, so use the current form instructions rather than copying an old filing checklist.