Final Notice
On , the Financial Conduct Authority issued a Final Notice to L B Commercials Limited
FINAL NOTICE
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action against LBCL.
2.
The Authority issued to LBCL the Decision Notice which notified LBCL that for the
reasons given below and pursuant to section 55J of the Act, the Authority had
decided to cancel LBCL’s Part 4A permission.
3.
LBCL has not referred the matter to the Tribunal within 28 days of the date on
which the Decision Notice was given to it.
4.
Accordingly, the Authority has today cancelled LBCL’s Part 4A permission.
L B Commercials Limited 3 February 2022
Final Notice
Page 2
DEFINITIONS
5.
The definitions below are used in this Final Notice:
“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 by the Authority to LBCL
dated 21 September 2021;
“LBCL” means L B Commercials Limited;
“LBCL s Part 4A permission” means the permission granted by the Authority to LBCL
pursuant to Part 4A of the Act;
“the Principles” means the Authority’s Principles for Businesses;
“RAG” means Regulated Activity Group as referred to in SUP;
“the RDC” means the Regulatory Decisions Committee of the Authority;
“the Return” means the CCR007 (Key data) return for the period ended 30
November 2019, which LBCL was due to submit to the Authority by 15
January 2020;
“the suitability Threshold Condition” means the threshold condition set out in
paragraph 2E of Schedule 6 to the Act;
“SUP” means the Authority’s Supervision Manual, part of the Handbook;
“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 by the Authority to LBCL
dated 26 August 2021.
REASONS FOR THE ACTION
6.
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 LBCL is failing
to satisfy the suitability Threshold Condition, in that the Authority is not satisfied
that LBCL is a fit and proper person having regard to all the circumstances, including
whether LBCL managed its business in such a way as to ensure that its affairs were
conducted in a sound and prudent manner.
7.
This is because LBCL has failed to comply with the regulatory requirement to submit
the
Returns.
LBCL has
not
been
open
and
co-operative
in
all
its
dealings with the Authority, in that LBCL has failed to respond adequately to the
Authority’s repeated requests for it to submit the Returns and has thereby failed to
comply with Principle 11 of the Principles and to satisfy the Authority that it is
ready, willing and organised to comply with the requirements and standards under
the regulatory system.
8.
These failures, which are significant in the context of LBCL’s suitability, lead the
Authority to conclude that LBCL 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 it was granted a Part 4A
permission.
L B Commercials Limited 3 February 2022
Final Notice
Page 3
DECISION MAKER
9.
The decision which gave rise to the obligation to give this Final Notice was made by
the RDC.
IMPORTANT
10.
This Final Notice is given to LBCL in accordance with section 390(1) of the Act.
Publicity
11.
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 LBCL or prejudicial to the interest of consumers.
12.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.
Authority contact
13.
For more information concerning this matter generally, please contact Funmi Ojo
at the Authority (direct line: 020 7066 1354).
Anna Couzens
Enforcement and Market Oversight Division
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action against LBCL.
2.
The Authority issued to LBCL the Decision Notice which notified LBCL that for the
reasons given below and pursuant to section 55J of the Act, the Authority had
decided to cancel LBCL’s Part 4A permission.
3.
LBCL has not referred the matter to the Tribunal within 28 days of the date on
which the Decision Notice was given to it.
4.
Accordingly, the Authority has today cancelled LBCL’s Part 4A permission.
L B Commercials Limited 3 February 2022
Final Notice
Page 2
DEFINITIONS
5.
The definitions below are used in this Final Notice:
“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 by the Authority to LBCL
dated 21 September 2021;
“LBCL” means L B Commercials Limited;
“LBCL s Part 4A permission” means the permission granted by the Authority to LBCL
pursuant to Part 4A of the Act;
“the Principles” means the Authority’s Principles for Businesses;
“RAG” means Regulated Activity Group as referred to in SUP;
“the RDC” means the Regulatory Decisions Committee of the Authority;
“the Return” means the CCR007 (Key data) return for the period ended 30
November 2019, which LBCL was due to submit to the Authority by 15
January 2020;
“the suitability Threshold Condition” means the threshold condition set out in
paragraph 2E of Schedule 6 to the Act;
“SUP” means the Authority’s Supervision Manual, part of the Handbook;
“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 by the Authority to LBCL
dated 26 August 2021.
REASONS FOR THE ACTION
6.
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 LBCL is failing
to satisfy the suitability Threshold Condition, in that the Authority is not satisfied
that LBCL is a fit and proper person having regard to all the circumstances, including
whether LBCL managed its business in such a way as to ensure that its affairs were
conducted in a sound and prudent manner.
7.
This is because LBCL has failed to comply with the regulatory requirement to submit
the
Returns.
LBCL has
not
been
open
and
co-operative
in
all
its
dealings with the Authority, in that LBCL has failed to respond adequately to the
Authority’s repeated requests for it to submit the Returns and has thereby failed to
comply with Principle 11 of the Principles and to satisfy the Authority that it is
ready, willing and organised to comply with the requirements and standards under
the regulatory system.
8.
These failures, which are significant in the context of LBCL’s suitability, lead the
Authority to conclude that LBCL 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 it was granted a Part 4A
permission.
L B Commercials Limited 3 February 2022
Final Notice
Page 3
DECISION MAKER
9.
The decision which gave rise to the obligation to give this Final Notice was made by
the RDC.
IMPORTANT
10.
This Final Notice is given to LBCL in accordance with section 390(1) of the Act.
Publicity
11.
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 LBCL or prejudicial to the interest of consumers.
12.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.
Authority contact
13.
For more information concerning this matter generally, please contact Funmi Ojo
at the Authority (direct line: 020 7066 1354).
Anna Couzens
Enforcement and Market Oversight Division