FHDDS32380 - Approval, revoking the approval and variations: approval – Granting the approval with additional conditions/restrictions

Regulation 6 of The Fulfilment Businesses Regulations 2018 provides for appropriate conditions/restrictions to be applied to an approval. Where the evidence you have gathered casts doubt over the business’s likely compliance but it is insufficient to support rejection of the application against the fit and proper standards, you should consider ways to reduce the compliance risk. One option is to add a suitable condition(s) or restriction(s) to the FHDDS approval designed to address any specific risks you have identified.

You can add conditions/restrictions to existing approvals of businesses where we believe risks to revenue have arisen but we do not have sufficient grounds to revoke their approval. Conditions should always be relevant to the risk identified and circumstances of the business in question. The imposition of new conditions is not appropriate as a solution where we have usable evidence that the risk to the revenue is due to evasion or fraud. In such circumstances rejecting or revocation of registration would normally be the more appropriate response. Use of conditions to address revenue risk is more appropriate where we view the risks to the revenue to be caused by regulatory breaches rather than attempts at evasion and so on.

This list is not exhaustive.

Note: You should not use conditions/restrictions on an applicant’s approval as a substitute where the risk to the revenue justifies that rejecting or revocation would be the appropriate response.

You should also consider the length of time a condition is to be in place. A condition must be proportionate to the risk and you should consider its impact on compliance.

Letter templates can be found on SEES / Forms + Letters / Selected Categories / Local Compliance / +CITEX / Fulfilment House Due Diligence Scheme.