Decision Notice
On , the Financial Conduct Authority issued a Decision Notice to Carzon International Limited
1
NOTICE OF DECISION
ACTION
1.
For the reasons given below, the Authority has decided to cancel CIL’s Part 4A permission. The
cancellation takes effect on the date of this Notice of Decision.
2.
The effect of the cancellation is that CIL no longer has permission to carry on any regulated
activities.
DEFINITIONS
3.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
Carzon International Limited
11 September 2023
Notice of Decision
2
“CIL” means Carzon International Limited;
“CIL’s Part 4A permission” means the Part 4A permission granted by the Authority to CIL;
“DISP” means the Authority’s Dispute Resolution: Complaint’s sourcebook, part of the
Handbook;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“FSCS” means the Financial Services Compensation Scheme;
“the Further Notice” means the further notice issued by the Authority to CIL dated 8 August
2023;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“the Notice” means the notice issued by the Authority to CIL dated 6 July 2023;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the Complaints, CCR002, CCR004 and Retail Mediation Activities Returns
relating to the period from 1 July 2019 to 31 December 2022 which were due for submission
on various dates between 11 August 2020 and 13 February 2023;
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
4.
CIL was authorised by the Authority on 1 April 2020 and given a Part 4A permission to conduct
the following regulated activities:
i.
advising on investments (except on pension transfers and pension opt outs);
ii.
agreeing to carry on a regulated activity;
iii.
arranging (bringing about) deals in investments;
iv.
credit broking;
v.
debt adjusting;
Carzon International Limited
11 September 2023
Notice of Decision
3
vi.
debt-counselling;
vii.
entering into regulated consumer hire agreements as owner;
viii.
exercising or having the right to exercise the owner’s rights and duties under a
regulated consumer hire agreement; and
ix.
making arrangements with a view to transactions in investments.
5.
CIL failed to pay periodic fees and levies owed to the Authority as required under the Handbook
under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R and 13.2.1R.
In particular, CIL failed to pay:
(a) an invoice dated 30 September 2020 for £1,718.49 which had been due for payment
by 29 December 2020; and
(b) an invoice dated 5 October 2021 for £2,182.70 which had been due for payment by 3
January 2022.
6.
In addition, under SUP 16.3.13R, 16.12.3R, SUP 16.12.4R, 16.12.28AR and SUP 16.12.29CR
and DISP 1.10.1R, CIL is required to submit the Returns to the Authority by the relevant due
date. However, CIL has failed to submit the Returns to the Authority. Furthermore, Under SUP
16.10.4R, 16.10.4AR and 16.10.14AAR, CIL is required to submit the FDA to the Authority by
the relevant due date. However, CIL has failed to submit the FDA to the Authority.
7.
The Authority therefore considers that CIL has failed to provide information to the Authority as
is required by the Handbook, namely the information it is required to provide in the Returns
and the FDA.
8.
On 6 July 2023, the Authority gave CIL the Notice which stated that:
(a)
it appears to the Authority that CIL is carrying on no regulated activity to which its Part
4A permission relates; and
(b)
the Authority may take action to cancel CIL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.
9.
CIL failed to respond or failed to respond in the manner specified in the directions to the Notice.
10.
As a result of the matters specified above, on 8 August 2023, the Authority gave CIL the Further
Notice which stated that:
a) the Authority considered that CIL is carrying on no regulated activity to which its Part
4A permission relates; and
b) the Authority proposes to cancel CIL’s Part 4A permission unless CIL takes the steps
specified in the directions to the Further Notice.
11.
CIL failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
12.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that CIL is carrying on no regulated activity to which its
Part 4A permission relates. The Authority has therefore decided to cancel CIL’s Part 4A
permission. The cancellation of CIL’s Part 4A permission takes effect on the date of this Notice
of Decision.
Carzon International Limited
11 September 2023
Notice of Decision
13.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
14.
This Notice of Decision is given to CIL under paragraph 3 of Schedule 6A to the Act (variation
or cancellation of Part 4A permission on initiative of FCA: additional power).
The following paragraphs are important.
Annulment of the Authority’s decision
15.
If CIL is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice of
Decision, CIL may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.
16.
CIL must submit a completed application for an annulment of the Authority’s decision to the
Authority by 10 September 2024 and in the manner specified by the Authority.
The Tribunal
17.
CIL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
18.
The Authority intends to publish such information about the matter to which this Notice of
Decision relates as the Authority considers appropriate. The information may be published in
such manner as the Authority considers appropriate.
19.
For more information concerning this matter generally, CIL should contact Maria Lewis (direct
line: 0207 066 0897).
Jeremy Parkinson
Enforcement and Market Oversight Division
NOTICE OF DECISION
ACTION
1.
For the reasons given below, the Authority has decided to cancel CIL’s Part 4A permission. The
cancellation takes effect on the date of this Notice of Decision.
2.
The effect of the cancellation is that CIL no longer has permission to carry on any regulated
activities.
DEFINITIONS
3.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
Carzon International Limited
11 September 2023
Notice of Decision
2
“CIL” means Carzon International Limited;
“CIL’s Part 4A permission” means the Part 4A permission granted by the Authority to CIL;
“DISP” means the Authority’s Dispute Resolution: Complaint’s sourcebook, part of the
Handbook;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“FSCS” means the Financial Services Compensation Scheme;
“the Further Notice” means the further notice issued by the Authority to CIL dated 8 August
2023;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“the Notice” means the notice issued by the Authority to CIL dated 6 July 2023;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the Complaints, CCR002, CCR004 and Retail Mediation Activities Returns
relating to the period from 1 July 2019 to 31 December 2022 which were due for submission
on various dates between 11 August 2020 and 13 February 2023;
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
4.
CIL was authorised by the Authority on 1 April 2020 and given a Part 4A permission to conduct
the following regulated activities:
i.
advising on investments (except on pension transfers and pension opt outs);
ii.
agreeing to carry on a regulated activity;
iii.
arranging (bringing about) deals in investments;
iv.
credit broking;
v.
debt adjusting;
Carzon International Limited
11 September 2023
Notice of Decision
3
vi.
debt-counselling;
vii.
entering into regulated consumer hire agreements as owner;
viii.
exercising or having the right to exercise the owner’s rights and duties under a
regulated consumer hire agreement; and
ix.
making arrangements with a view to transactions in investments.
5.
CIL failed to pay periodic fees and levies owed to the Authority as required under the Handbook
under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R and 13.2.1R.
In particular, CIL failed to pay:
(a) an invoice dated 30 September 2020 for £1,718.49 which had been due for payment
by 29 December 2020; and
(b) an invoice dated 5 October 2021 for £2,182.70 which had been due for payment by 3
January 2022.
6.
In addition, under SUP 16.3.13R, 16.12.3R, SUP 16.12.4R, 16.12.28AR and SUP 16.12.29CR
and DISP 1.10.1R, CIL is required to submit the Returns to the Authority by the relevant due
date. However, CIL has failed to submit the Returns to the Authority. Furthermore, Under SUP
16.10.4R, 16.10.4AR and 16.10.14AAR, CIL is required to submit the FDA to the Authority by
the relevant due date. However, CIL has failed to submit the FDA to the Authority.
7.
The Authority therefore considers that CIL has failed to provide information to the Authority as
is required by the Handbook, namely the information it is required to provide in the Returns
and the FDA.
8.
On 6 July 2023, the Authority gave CIL the Notice which stated that:
(a)
it appears to the Authority that CIL is carrying on no regulated activity to which its Part
4A permission relates; and
(b)
the Authority may take action to cancel CIL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.
9.
CIL failed to respond or failed to respond in the manner specified in the directions to the Notice.
10.
As a result of the matters specified above, on 8 August 2023, the Authority gave CIL the Further
Notice which stated that:
a) the Authority considered that CIL is carrying on no regulated activity to which its Part
4A permission relates; and
b) the Authority proposes to cancel CIL’s Part 4A permission unless CIL takes the steps
specified in the directions to the Further Notice.
11.
CIL failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
12.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that CIL is carrying on no regulated activity to which its
Part 4A permission relates. The Authority has therefore decided to cancel CIL’s Part 4A
permission. The cancellation of CIL’s Part 4A permission takes effect on the date of this Notice
of Decision.
Carzon International Limited
11 September 2023
Notice of Decision
13.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
14.
This Notice of Decision is given to CIL under paragraph 3 of Schedule 6A to the Act (variation
or cancellation of Part 4A permission on initiative of FCA: additional power).
The following paragraphs are important.
Annulment of the Authority’s decision
15.
If CIL is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice of
Decision, CIL may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.
16.
CIL must submit a completed application for an annulment of the Authority’s decision to the
Authority by 10 September 2024 and in the manner specified by the Authority.
The Tribunal
17.
CIL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
18.
The Authority intends to publish such information about the matter to which this Notice of
Decision relates as the Authority considers appropriate. The information may be published in
such manner as the Authority considers appropriate.
19.
For more information concerning this matter generally, CIL should contact Maria Lewis (direct
line: 0207 066 0897).
Jeremy Parkinson
Enforcement and Market Oversight Division