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FINAL NOTICE

Dated:

1 May 2018

ACTION

1.
For the reasons set out in this Final Notice, the Authority hereby takes the
following action against Mr Rochester.

2.
The Authority gave Mr Rochester the Decision Notice, which notified Mr Rochester
that, for the reasons given below and pursuant to section 55J of the Act, the
Authority had decided to cancel the permission granted to Mr Rochester under Part
4A of the Act.

3.
Mr Rochester has not referred the matter to the Tribunal within 28 days of the date
on which the Decision Notice was given to him.

4.
Accordingly, the Authority has today cancelled Mr Rochester’s Part 4A permission.

DEFINITIONS

5.
The definitions below are used in this Final Notice (and in the Annex):

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

“the Authority” means the Financial Conduct Authority;

“EG” means the Authority’s Enforcement Guide;

“the Decision Notice” means the Decision Notice issued to Mr Rochester on 7 March
2018;

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“DEPP” means the Authority’s Decision Procedure and Penalties manual;

“the Handbook” means the Authority’s Handbook of rules and guidance;

“the Principles” means the Authority’s Principles for Businesses;

“Mr Rochester’s Part 4A permission” means the permission granted by the
Authority to Marcel Rochester pursuant to Part 4A of the Act;

“the suitability Threshold Condition” means the threshold condition set out in
paragraph 2E of Schedule 6 to the Act;


“SUP” means the Supervision Manual, part of the Handbook;

“the Threshold Conditions” means the threshold conditions set out in Schedule 6 to
the Act; and

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

RELEVANT STATUTORY PROVISIONS

6.
The statutory and regulatory provisions relevant to this Final Notice are set out in
the Annex.

SUMMARY OF THE REASONS


7.
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 Mr Rochester is
failing to satisfy the suitability Threshold Condition, in that the Authority is not
satisfied that Mr Rochester is a fit and proper person having regard to all the
circumstances.

8.
Mr Rochester has failed to notify the Authority of a change in the address and
telephone number of his principal place of business and has failed to deal openly
and co-operatively with the Authority (in not providing up-to-date contact details).

FACTS AND MATTERS

9.
Mr Rochester was authorised by the Authority on 3 July 2015 to conduct credit
broking activities.

10.
Correspondence sent by the Authority between 10 May 2017 and 18 December
2017 to the postal address last notified to the Authority as Mr Rochester’s principal
place of business was returned to the Authority marked “addressee gone away”.

11.
At least one correspondence sent by the Authority on 18 December 2017 to the
alternative postal address as notified to the Authority by Mr Rochester as his
complaints’ office address was returned to the Authority unmarked.

12.
Correspondence sent by the Authority on 15 May 2017 and 18 December 2017 to
the email address last notified to the Authority by Mr Rochester was returned to
the Authority because the “recipient’s email provider rejected it.”

13.
The Authority attempted to contact Mr Rochester on 16 May 2017 and 7 December
2017 via the telephone number Mr Rochester provided to the Authority for his

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principal place of business address. The Authority was unable to connect the call as
the telephone number was vacant.

14.
The Authority attempted to contact Mr Rochester on 7 December 2017 via the
alternative telephone number Mr Rochester provided to the Authority for his
complaints’ office address. The Authority was unable to connect the call as the
telephone number was vacant.

15.
Accordingly, it appears to the Authority that Mr Rochester has failed to notify the
Authority of a change in the address and telephone number for his principal place
of business.

FAILINGS

16.
As set out in the facts and matters described above, the Authority has made
repeated unsuccessful attempts to contact Mr Rochester using the postal address,
email address and telephone number held by the Authority in relation to Mr
Rochester.

17.
The Authority has concluded, on the basis of the facts and matters described
above, that:

a. Mr Rochester has failed to notify the Authority of a change in the address and

telephone number of his principal place of business contrary to SUP
15.5.4R(1) and SUP 15.5.5R(1) respectively;

b. Mr Rochester has failed to deal openly and co-operatively with the Authority in

breach of Principle 11 (Relations with regulators) of the Principles (by not
providing up-to-date contact details);

c. Mr Rochester has not demonstrated that he is ready, willing and organised to

comply with the requirements and standards under the regulatory system,
namely the requirements in SUP 15.5.4R(1) and SUP 15.5.5R(1) to give the
Authority reasonable advance notice of a change in his principal place of
business and telephone number, and the date of the change; and

d. Mr Rochester has therefore failed to satisfy the Authority that his business is

being managed in such a way as to ensure that his affairs will be conducted in
a sound and prudent manner or that he is a fit and proper person having
regard to all the circumstances; and

e. Mr Rochester is therefore failing to satisfy the suitability Threshold Condition

in relation to his permitted regulated activities;

and accordingly, Mr Rochester’s Part 4A permission should be cancelled.

DECISION MAKER

18.
The decision which gave rise to the obligation to give this Final Notice was made by
the Regulatory Decisions Committee.

IMPORTANT



19.
This Final Notice is given to Mr Rochester in accordance with section 390(1) of the
Act.

20.
The Authority must publish such information about 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 information would, in the opinion of the Authority, be unfair
to Mr Rochester or prejudicial to the interests of consumers.


21.
The Authority intends to publish such information about the matter to which this
Final notice relates as it considers appropriate.

22.
For more information concerning this matter generally, Mr Rochester should
contact Sheena Baldev at the Authority (direct line: 0207 066 6760).

Anna Couzens
Enforcement and Market Oversight Division



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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 section 55J of the Act to cancel an authorised person’s

Part 4A permission, where it appears to the Authority that such a person is failing to
satisfy the Threshold Conditions.


3. The suitability Threshold Condition provides:

“[The firm] must be a fit and proper person having regard to all the

circumstances, including—

[…]

(d)
whether
[the
firm]
has
complied
and
is
complying
with

requirements imposed by the [Authority] in the exercise of its
functions, or requests made by the [Authority], relating to the
provision of information to the [Authority] and, where [the firm]
has so complied or is so complying, the manner of that compliance;

[…]

(f)
whether [the firm's] business is being, or is to be, managed in such
a way as to ensure that its affairs will be conducted in a sound and
prudent manner;

[…].”

RELEVANT HANDBOOK PROVISIONS

4.
In exercising its power to cancel a firm’s Part 4A permission, the Authority must
have regard to guidance published in the Handbook and in regulatory guides,
such as EG. The relevant main considerations in relation to the action specified
above are set out below.

5.
Principle 11 requires a firm to deal with its regulators in an open and co-operative
way, and to disclose to the Authority appropriately anything relating to the firm of
which the Authority would reasonably expect notice.

Relevant Rules

6.
SUP 15.5.4R requires that:

“A firm must give the [Authority] reasonable advance notice of a change in
any of the following addresses, and give details of the new address and the
date of the change:


(1)
the firm’s principal place of business in the United Kingdom;

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7.
SUP 15.5.5R(1) requires that:

“A firm must give the [Authority] reasonable advance notice of a change in
any of the following telephone numbers, and give details of the new telephone
number and the date of the change:


(1)
the number of the firm’s principal place of business in the United

Kingdom;

[…].”

Guidance concerning the suitability Threshold Condition

8.
Guidance on the suitability Threshold Condition is set out in COND.

COND 2.5 – Suitability: Paragraph 2E of Schedule 6 to the Act

9.
COND 2.5.1AUK reproduces the relevant statutory provision that a person
concerned must be a fit and proper person having regard to all the
circumstances, including, amongst other things, the need to ensure that its
business is being managed in such a way as to ensure that its affairs will be
conducted in a sound and prudent manner.

10.
COND 2.5.2G states that the Authority will take into consideration anything that
could influence a firm’s continuing ability to satisfy the suitability Threshold
Condition.

11.
COND 2.5.6G gives examples of the kind of particular considerations to which the
Authority may have regard when assessing whether a firm will satisfy, and
continue to satisfy, the suitability Threshold Condition, including whether:


the firm has been open and co-operative in all its dealings with the Authority
and is ready, willing and organised to comply with the requirements and
standards under the regulatory system (COND 2.5.6G(1));



the firm has contravened, amongst other things, the provisions of the
regulatory system, which include the Principles and other rules (COND
2.5.6G(4)).



OTHER RELEVANT REGULATORY PROVISIONS

12.
The Authority’s policy in relation to its enforcement powers is set out in EG,
certain provisions of which are summarised below.

Cancelling a firm’s Part 4A permission on the Authority’s own initiative

13.
EG 8.1.1(1) provides that the Authority may use its own initiative power to vary
or cancel the permission of an authorised person under section 55J of the Act,
where the person is failing or is likely to fail to satisfy the Threshold Conditions
for which the Authority is responsible.

14.
EG 8.5.1(1) states that the Authority will consider cancelling a firm’s Part 4A
permission using its own initiative power contained in section 55J of the Act in
circumstances where the Authority has very serious concerns about the firm, or
the way its business is or has been conducted.

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15.
EG 8.5.2 provides examples of the types of circumstances in which the Authority
may cancel a firm’s Part 4A permission. One such example is the failure to
provide the Authority with valid contact details or failure to maintain the details
provided, such that the Authority is unable to communicate with the firm (EG
8.5.2(6)).