DW Clothing Limited (in Liquidation)
HJS Recovery (UK) Ltd
Dated: 7 June 2018
For the reasons set out in this Final Notice, the Authority hereby takes the
following action against DWCL.
The Authority issued to DWCL the Decision Notice which notified it that for the
reasons given below and pursuant to section 55J of the Act, the Authority had
decided to cancel DWCL’s Part 4A permission.
DWCL has not referred the matter to the Tribunal within 28 days of the date on
which the Decision Notice was issued to it.
Accordingly, the Authority has today cancelled DWCL’s Part 4A permission.
The definitions below are used in this Final Notice:
DW Clothing Limited
7 June 2018
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
“the Decision Notice” means the Decision Notice issued to DWCL dated 25 April
“DWCL” means DW Clothing Limited (in Liquidation);
“DWCL’s Part 4A permission” means the permission granted by the Authority to
DWCL pursuant to Part 4A of the Act;
“the Principles” means the Authority’s Principles for Businesses;
“the Return” means the CCR007 (key data) return for the period ended 31 May
2017, which was due to be submitted by 12 July 2017;
“the suitability Threshold Condition” means the threshold condition stated in
Paragraph 2E of Schedule 6 to the Act;
“the Threshold Conditions” means the threshold conditions set out in Schedule 6
to the Act;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the Warning Notice issued to PML dated 28 March
REASONS FOR ACTION
On the basis of the facts and matters and conclusions described in the Warning
Notice and in the Decision Notice, it appears to the Authority that DWCL is failing
to satisfy the suitability Threshold Condition, in that the Authority is not satisfied
that DWCL is a fit and proper person having regard to all the circumstances,
including whether DWCL managed its business in such a way as to ensure that its
affairs were conducted in a sound and prudent manner.
This is because DWCL has failed to comply with the regulatory requirement to
submit the Return. DWCL has not been open and co-operative in all its dealings
with the Authority, in that it has failed to respond adequately to the Authority's
repeated requests for it to submit the Return and pay the Overdue Balance, and
has thereby failed to comply with Principle 11 of the Authority's Principles for
Businesses and to satisfy the Authority that it is ready, willing and organised to
comply with the requirements and standards under the regulatory system.
These failures, which are significant in the context of DWCL’s suitability, lead the
Authority to conclude that DWCL has failed to manage its business in such a way
as to ensure that its affairs are conducted in a sound and prudent manner, that it
is not a fit and proper person, and that it is therefore failing to satisfy the
Threshold Conditions in relation to the regulated activities for which DWCL was
granted a Part 4A permission.
DW Clothing Limited
7 June 2018
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.
This Final Notice is given to DWCL in accordance with section 390(1) of the Act.
The Authority must publish such information about the matter to which this Final
Notice relates as the Authority considers appropriate. The information may be
published in such manner as the Authority considers appropriate. However, the
Authority may not publish information if such publication would, in the opinion of
the Authority, be unfair to DWCL or prejudicial to the interest of consumers.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.
For more information concerning this matter generally, please contact Yasmin
Moore at the Authority (direct line: 020 7066 5439).
Enforcement and Market Oversight Division