FINAL NOTICE

ACTION

1. By an application dated 12 August 2020 (‘the application’), Kreis Financial Ltd

applied under section 60(1) of the Act for Part V approval for Mr Neptune Tavarez
Tanoh (‘the candidate’) to perform SMF3 Executive Director and SMF27 Partner.

2. The Application was incomplete.

3. The Authority has refused the Application.

SUMMARY OF REASONS

4. By its Warning Notice dated 13 September 2021, the Authority gave notice that it

proposed to refuse the Application and that Kreis Financial Ltd was entitled to make
representations to the Authority about that proposed action.

5. As no representations have been received by the Authority from Kreis Financial Ltd

within the time allowed by the Warning Notice, the default procedures in paragraph
2.3.2 of the Authority’s Decision Procedure and Penalties Manual apply, permitting

the Authority to treat the matters referred to in its Warning Notice as undisputed
and, accordingly, to give a Decision Notice.

6. Kreis Financial Ltd has failed to respond to seven email requests, five telephone

calls and two recorded delivery letters for the provision of information considered
by the Authority to be necessary to allow the Application to be determined. The
last request included a statement to the effect that Kreis Financial Ltd must contact
the Authority within 10 business days, or the Authority would issue Kreis Financial
Ltd with a Warning Notice. No response was received.

7. The Authority must therefore determine the Application based upon the information

received to date, in circumstances where its requests for information have not been
met. Having reviewed that information, the Authority cannot ensure that the
candidate is a fit and proper person to perform the SMF3 Executive Director and
SMF27 Partner role.

8. In light of the above the Authority has refused the Application.

DEFINITIONS

9. The definitions below are used in this Decision Notice.

“the Act” means the Financial Services and Markets Act 2000;

“the Application” means the application referred to in paragraph 1 above;

“the Authority” means the Financial Conduct Authority;

“the candidate” means Neptune Tavarez Tanoh, in respect of whom the Application
is made;

“DBS” means Disclosure and Barring Service;

“FIT” means the Fit and Proper test for Employees and Senior Personnel section of
the Authority’s Handbook;

“the RDC” means the Authority’s Regulatory Decisions Committee;

“the RTC” means the Authority’s Regulatory Transactions Committee; and

“the Tribunal” means the Upper Tribunal (Tax & Chancery Chamber).

“the Warning Notice” means the Warning Notice dated 13 September 2021 given
to Kreis Financial Ltd by the Authority.

FACTS AND MATTERS

10. The Application was received by the Authority on 12 August 2020.

11. Further information was requested from Kreis Financial Ltd under section 55U (5)

of the Act.

12. Details of all relevant communications between the Authority and Kreis Financial

Ltd are set out below.

13. The Authority requested the following information in support of the Application:

•
On 11 November 2020, an email was sent requesting copies of documents
marked as ‘Send Later’ on the application:

-
Skills Gap Analysis

-
Learning and Development

•
On 18 February 2021, the Authority attempted to call Kreis Financial Ltd.
No response to the call was received.

•
On 18 February 2021, the Authority sent an email to Kreis Financial Ltd
requesting the outstanding documents above and further information:

-
Details of how much time the candidate spends in each of the roles;

-
How the firm has satisfied itself that the candidate can devote the
appropriate amount of time to ensure he can perform his duties for each
role effectively.

-
As SMF16 and SMF17 have been removed from the candidate, the firm
was requested to confirm if they are happy to remove Prescribed
Responsibility D and Z as the remaining Prescribed Responsibility: A, B
and B-1 on the Statement of Responsibility document would be best
appropriate for SMF27 and SMF3. No response received from the firm.

•
On 17 March 2021 the Authority attempted to call Kreis Financial Ltd. No
response to the call was received.

•
On 17 March 2021, the Authority sent an email to Kreis Financial Ltd asking
for a response to the information requested. No response received from the
firm

•
On 25 March 2021, the Authority attempted to call Kreis Financial Ltd. No
response to the call was received.

•
On 25 March 2021, the Authority sent an email to Kreis Financial Ltd asking
for a response to the information requested. No response received from the
firm.

•
On 15 April 2021, the Authority attempted to call Kreis Financial Ltd. No
response to the call was received.

•
On 15 April 2021, the Authority sent an email to Kreis Financial Ltd asking
for a response to the information requested. No response received from the
firm.

•
On 23 April 2021, the Authority attempted to call Kreis Financial Ltd. No
response to the call was received.

•
On 23 April 2021, the Authority sent an email to Kreis Financial Ltd asking
for a response to the information requested. No response received from the
firm.

14. On 5 May 2021, the Authority sent a letter to Kreis Financial Ltd by way of email

and recorded delivery, noting the lack of a response to its requests for the
information and informing that a failure to provide the information would result in
the Application being determined based upon the information received to date. The
Authority also informed that this might result in a recommendation to the RTC that
it issue Kreis Financial Ltd with a Warning Notice proposing to refuse the
Application. Kreis Financial Ltd failed to provide the outstanding information by the
stated deadline.

IMPACT ON THE CANDIDATE’S FITNESS AND PROPRIETY

15. Kreis Financial Ltd and the candidate have failed to respond to all requests for the

provision of information considered by the Authority to be necessary to allow the
Application to be determined. The final request gave Kreis Financial Ltd 10 business
days to respond and included a statement to the effect that Kreis Financial Ltd must
contact the Authority, or the Authority would recommend to the RTC that Kreis
Financial Ltd receives a Warning Notice.

16. The Authority must therefore determine the Application based upon the information

received to date, in circumstances where its requests for information have not been
met. Having reviewed that information, the Authority cannot be satisfied that the
candidate, in respect of whom the application is made, is a fit and proper person
to perform the function to which the Application relates.

17. Authorised firms (and those seeking authorisation) are expected to engage with

the Authority in an open and cooperative way. The failure to provide the requested
information raises concerns that the candidate lacks the competence and capability
to carry out the senior management function to which the Application relates.

18. The failure to provide the information raises concerns as to whether the candidate:

a. can satisfy the FIT criteria in relation to FIT 2.2 Competence and Capability;

and

b. will conduct the senior management function to which the Application relates

to with due skill and care and in compliance with proper standards as
required by FIT.

IMPORTANT NOTICES

19. This Final Notice is given under section 390(1) of the Act.

20. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of

information about the matter to which this Notice relates. Under those provisions,
the Authority must publish such information about the matter to which this Notice
relates 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 you or prejudicial to the interests of consumers or detrimental to the
stability of the UK financial system.

21. The Authority intends to publish such information about the matter to which this

Final Notice relates.

Authority contacts

22. For more information concerning this matter generally, contact Laura Moloney,

Manager, Senior Managers Regime Lending & Intermediaries Team/Authorisations
Division
at
the
Authority
(direct
line:
020
7066
0488
/
email:

Laura Moloney
Executive Decision maker on behalf of the Authority

ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL NOTICE

Relevant statutory provisions

1. The Authority may grant an application for approval under section 60 of the Act

only if it is satisfied that the person in respect of whom the application is made is
a fit and proper person to perform the controlled function to which the application
relates (section 61(1) of the Act).

2. Section 62(2) of the Act requires the Authority, if it proposes to refuse the

application, to issue a Final Notice.

Relevant provisions of the Authority’s Handbook

3. The Fit and Proper test for Approved Persons (“FIT”) sets out the criteria that the

Authority will consider when assessing the fitness and propriety of a person to
perform a particular controlled function.

4. The most important considerations to which the Authority will have regard include

the person’s competence and capability.

5. If a matter comes to the Authority’s attention which suggests that the person might

not be fit and proper, the Authority will take into account how relevant and
important that matter is (FIT 1.3.4G).

6. In determining a person’s competence and capability, the matters to which the

Authority will have regard include:

(1) whether the person satisfies the relevant Authority training and competence

requirements in relation to the controlled function the person performs or is
intended to perform (FIT 2.2.1G (1));

(2) whether the person has demonstrated by experience and training that the person

is suitable, or will be suitable if approved, to perform the controlled function (FIT
2.2.1G (2)); and

(3) whether the person has adequate time to perform the controlled function and

meet the responsibilities associated with that function (FIT 2.2.1G (3)).