1

NOTICE OF DECISION

To:
Rashid Akhtar (trading as United Commercial Trading)

ACTION

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

2.
The effect of the cancellation is that the Firm 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;

“EG” means the Enforcement Guide;

Rashid Akhtar (T/A United Commercial Trading)
10 January 2024
Notice of Decision

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“the Firm” means Rashid Akhtar (trading as United Commercial Trading);

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

“the Further Notice” means the further notice issued by the Authority to the Firm dated 29
November 2023;

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

“the Notice” means the notice issued by the Authority to the Firm dated 27 September 2023;

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

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

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

FACTS AND MATTERS

4. The Firm was authorised by the Authority on 14 December 2015 and given a Part 4A
permission to conduct the following regulated activities in relation to consumer credit
business:

a. agreeing to carry on a regulated activity;
b. credit broking;
c. entering into regulated credit agreement as lender (excluding high-cost short term
credit, bill of sale agreement, and home collected credit agreement); and
d. exercising/having right to exercise lenders rights and duties under regulated credit
agreement (excluding high-cost short term credit, bill of sale agreement, and home
collected credit agreement).

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

6.
On 27 September 2023, the Authority gave the Firm the Notice which stated that:

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

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

7.
The Firm failed to respond in the manner specified in the directions to the Notice.

8.
As a result of the matters specified above, on 29 November 2023, the Authority gave the Firm
the Further Notice which stated that:

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

Rashid Akhtar (T/A United Commercial Trading)
10 January 2024
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b) the Authority proposes to cancel the Firm’s Part 4A permission on 10 January 2024
unless the Firm takes the steps specified in the directions to the Further Notice.

9.
The Firm failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION

10.
From the facts and matters described above, the Authority considers that the Firm is carrying
on no regulated activities to which its Part 4A permission relates. The Authority has therefore
decided to cancel the Firm’s Part 4A permission. The cancellation of the Firm’s Part 4A
permission takes effect on the date of this Notice of Decision.

11.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.

PROCEDURAL MATTERS

12.
This Notice of Decision is given to the Firm 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

13.
If the Firm is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice
of Decision, the Firm may make an application for an annulment of the Authority’s decision
under paragraph 4 of Schedule 6A to the Act.

14.
The Firm must submit a completed application for an annulment of the Authority’s decision to
the Authority by 9 January 2025 and in the manner specified by the Authority.

The Tribunal

15.
The Firm does not have a right to refer the decision to give this Notice of Decision to the
Tribunal.

16.
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.

17.
For more information concerning this matter generally, the Firm should contact Bnar Mecaj
(direct line: 020 7066 4240).

Rashid Akhtar (T/A United Commercial Trading)
10 January 2024
Notice of Decision

Angela Curtis
Enforcement and Market Oversight Division

Rashid Akhtar (T/A United Commercial Trading)
10 January 2024
Notice of Decision

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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.
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

4.
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.

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

5.
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.

6.
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.

7.
SUP sets out further guidance on the Authority’s power under Schedule 6A of the Act. In
particular, SUP 7.2.2AG(1) 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; and

(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

Rashid Akhtar (T/A United Commercial Trading)
10 January 2024
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(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.

8.
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 it 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.

9.
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-
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.

10.
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.