1

NOTICE OF DECISION

To:


Clear Car Credit Ltd

ACTION

1.
For the reasons given below, the Authority has decided to cancel Clear Car Credit Limited’s Part
4A permission. The cancellation takes effect on the date of this Notice of Decision.

2.
The effect of the cancellation is that Clear Car Credit Limited 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;

“CCCL” means Clear Car Credit Ltd;

“CCCL’s Part 4A permission” means the Part 4A permission granted by the Authority to CCCL;

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“EG” means the Enforcement Guide;

“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 CCCL dated 27 July
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 CCCL dated 26 June 2023;

“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;

“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.
CCCL was authorised by the Authority on 12 November 2014 and given a Part 4A permission
to conduct the following regulated activities in relation to consumer credit business:

•
agreeing to carry on a regulated activity;
•
credit broking;
•
debt adjusting;
•
debt-counselling;
•
entering into regulated credit agreement as Lender (Excluding high-cost short term
credit, bill of sale agreement, and home collected credit agreement); and
•
exercising/having right to exercise lender's rights and duties under a regulated credit
agreement (excluding high-cost short-term credit, bill of sale agreement, and home
collected credit agreement).

5.
CCCL submitted regulatory returns to the Authority for the periods 6 April 2021 to 5 April 2023
which show that CCCL has not generated any income from the regulated activities it is
permitted to carry on. In addition, there are no other matters that suggest CCCL is carrying on
regulated activities.

6.
CCCL 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, CCCL failed to the following periodic fees and levies:


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(a) an invoice dated 25 August 2021 of £819.34 which had been due for payment by 23
November 2021; and

(b) an invoice dated 6 September 2022 of £1,088.26 which had been due for payment by
6 October 2022.

7.
On 26 June 2023, the Authority gave CCCL the Notice which stated that:

(a)
it appears to the Authority that CCCL is carrying on no regulated activity to which its Part
4A permission relates; and

(b)
the Authority may take action to cancel CCCL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.

8.
CCCL failed to respond in the manner specified in the directions to the Notice.

9.
As a result of the matters specified above, on 27 July 2023, the Authority gave CCCL the
Further Notice which stated that:

a) the Authority considered that CCCL is carrying on no regulated activity to which its Part
4A permission relates; and

b) the Authority proposes to cancel CCCL’s Part 4A permission on 23 August 2023 unless
CCCL takes the steps specified in the directions to the Further Notice.

10.
CCCL failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION

11.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that CCCL is carrying on no regulated activity to which
its Part 4A permission relates. The Authority has therefore decided to cancel CCCL’s Part 4A
permission. The cancellation of CCCL’s Part 4A permission takes effect on the date of this Notice
of Decision.

12.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.

PROCEDURAL MATTERS



13.
This Notice of Decision is given to CCCL 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

14.
If CCCL is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice
of Decision, CCCL may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.

15.
CCCL must submit a completed application for an annulment of the Authority’s decision to the
Authority by 22 August 2024 and in the manner specified by the Authority.

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The Tribunal

16.
CCCL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.

Publicity

17.
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.

Authority Contact

18.
For more information concerning this matter generally, CCCL should contact Ibrahim Ali (direct
line: 020 7066 4264).


Jeremy Parkinson
Enforcement and Market Oversight Division



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ANNEX ON CANCELLATION OF PART 4A PERMISSION ON INITIATIVE OF FCA:

ADDITIONAL POWER

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational objectives established in section 1B of the Act include protecting
and enhancing the integrity of the UK financial system and securing an appropriate degree of
protection for consumers.

2.
The Authority is authorised by paragraphs 1(1) and (2) of Schedule 6A to the Act to cancel an
Authority-authorised person’s Part 4A permission, if it appears to the Authority that the
Authority-authorised person is carrying on no regulated activity to which the permission
relates.

3.
Paragraph 1(3) of Schedule 6A of the Act provides that the circumstances in which the Authority
may form the view that an Authority-authorised person is carrying on no regulated activity
include (but are not limited to) circumstances where the person fails—

(a)
to pay any periodic fee or levy as is required by the Handbook.

4.
The Authority must exercise its power to cancel an Authority-authorised person’s Part 4A
permission using its additional own initiative power in accordance with the procedure set out
in paragraph 2 of Schedule 6A to the Act.

RELEVANT HANDBOOK PROVISIONS

5.
In exercising its power to cancel an Authority-authorised person’s Part 4A permission, the
Authority must have regard to the regulatory requirements and guidance published in the
Handbook and in regulatory guides, such as EG. The main considerations relevant to the action
stated in this Notice of Decision are set out below.

Relevant Rules

6.
FEES 4.2.1R requires that:

“A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer
must pay each periodic fee applicable to it, calculated in accordance with the provisions
referred to in column (2) of the applicable table, as adjusted by any relevant provision
in this chapter:

(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and

(2)
on or before the date given in column (3) of that table, unless FEES 4.2.10 R
applies.”

7.
FEES 4.3.1R states that:

“The periodic fee payable by a firm (except an AIFM qualifier, ICVC or a UCITS
qualifier) is:


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(1)
each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R,
using information obtained in accordance with FEES 4.4; plus

(1A)
any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R
using information relating to its UK business obtained in accordance with FEES
4.4 (or by other means in the case of the Bank of England); less

(2)
any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR
or Part 7 of FEES 4 Annex 11R.”

10.
FEES 5.7.1R requires that:


“A firm must pay annually to the [Authority] the general levy on or before the later of
1 April and 30 calendar days after the date when the invoice is issued by the
[Authority].”

11.
FEES 6.7.1R requires that:

“A participant firm that is not within FEES 6.7.-1R, must pay its share of any levy made
by the FSCS in one payment”.

12.
FEES 6.7.3R states that:

“A participant firm's share of a levy to which FEES 6.7.1R applies is due on, and payable
within 30 days of, the date when the invoice is issued.”

13.
FEES 7A.3.1R requires that:

“A firm must pay the SFGB money advice levy or SFGB debt advice levy applicable to
it:

(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and

(2)
by 1 August or, if later, within 30 days of the date of the invoice in the fee year
to which that sum relates.

14.
FEES 13.2.1R requires that:

“A firm must pay each IML levy applicable to it:

(1)
in full and without deduction by 1 August (or, if later, within 30 days of the
date of the invoice) in the financial year to which the sum relates; and

(2)
in accordance with the rules in this chapter.







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Guidance concerning the use of the Authority’s additional power to cancel an authorised
firm’s Part 4A permission on its own initiative

15.
Guidance on the use of the Authority’s power to cancel an Authority-authorised person’s Part
4A permissions on its own initiative under Schedule 6A to the Act is set out in SUP and EG.

16.
EG 8.5.2A states that the Authority may cancel the Part 4A permission of a firm that is an
Authority-authorised person, under Schedule 6A of the Act, if:

(1) it appears to the Authority that the firm is carrying on no regulated activity to which
the permission relates; and

(2) the firm has failed to respond as directed by the Authority to notices served by the
Authority to the firm under paragraph 2 of Schedule 6A.

17.
EG 8.5.2A also states that Schedule 6A specifies that the Authority may form the view that a
firm is carrying on no such regulated activity on the basis of its failure to pay a periodic fee or
levy or provide information to the Authority, in each case as required by the Handbook.

18.
SUP sets out further guidance on the Authority’s power under Schedule 6A of the Act. In
particular, SUP 7.2.2AG states that the Authority may decide to cancel an Authority-authorised
person’s Part 4A permission using its powers under Schedule 6A of the Act:

(1) if that person appears to the Authority not to be carrying on any regulated activity to
which the permission relates, including, without restriction, if the person has failed to:

(a)
pay a periodic fee or levy under the Handbook.

(2) if that person, when served by the Authority with two notices under paragraph 2 of
Schedule 6A of the Act, has not:

(a)
responded in the manner directed, in those notices or otherwise, by the
Authority; nor

(b)
taken other steps as may also be directed by the Authority;

the second of which notices will specify the effective date of the proposed cancellation.

19.
SUP 7.2.2CG states that, apart from the circumstances described in SUP 7.2.2AG(1), the
Authority may also form the view, under Schedule 6A of the Act, that a firm is no longer
conducting any regulated activity to which its permission relates in light of, without restriction:

(1) one or more reports, provided to the Authority by the firm, under SUP 16 or
otherwise, indicating that it is no longer doing so.

20.
SUP 7.2.2DG states that:

(1) the Authority’s additional own-initiative variation power under Schedule 6A to the Act
(which includes the power to cancel the Part 4A permission of an Authority-authorised
firm under Schedule 6A of the Act and references to “additional own-initiative
variation power in the remainder of this Notice of Decision should be read as such)
has, unlike the Authority’s own-initiative variation power under section 55J of the
Act, a single basis: that it appears to the Authority that the relevant Authority-

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authorised person is not carrying on any regulated activity to which its Part 4A
permission relates.

(2) if the Authority uses its additional own-initiative variation power, it is therefore more
likely to cancel the relevant firm’s Part 4A permission, rather than merely varying it
by removing or amending the description of one or more such activities or by
imposing one or more limitations.

(3) the Authority will, however, consider all relevant facts and circumstances, including,
without restriction:

(a) the relevant firm’s responses, if any, to the notices given by the Authority under
paragraph 2 of Schedule 6A; and

(b) if applicable, the factors described in SUP 6.4.22G, including whether there are
any matters relating to the firm requiring investigation,

before deciding whether to use its additional own-initiative variation power and whether to use
it to cancel or vary.

21.
SUP 7.2.7G(1) states that a firm has no right of referral to the Tribunal in respect of the
Authority exercising its additional own-initiative variation power, under Schedule 6A to the Act,
on the Authority-authorised firm’s Part 4A permission.