Decision Notice
On , the Financial Conduct Authority issued a Decision Notice to SkyBlue Financial Services Ltd
NOTICE OF DECISION
ACTION
1.
The Authority has decided to cancel the Firm’s Part 4A permission.
2.
The Authority has taken this action because, based on the facts and matters set out below, it
considers that the Firm is carrying on no regulated activity to which the Firm’s Part 4A permission
relates.
3.
The cancellation takes effect on the date of this Notice of Decision. The effect of the cancellation
is that the Firm no longer has permission to carry on any regulated activities.
DEFINITIONS
4.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
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“the Authority” means the Financial Conduct Authority;
“Directory Persons Attestation” means the report which an SMCR firm (as defined in the
Handbook) is required to submit to the Authority in accordance under SUP 16.26;
“DISP” means the Dispute Resolution: Complaints Manual which is part of the Handbook;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“the Firm” means SkyBlue Financial Services Ltd;
“the Firm’s Part 4A permission” means the Part 4A permission granted by the Authority to the
Firm;
“FSCS” means the Financial Services Compensation Scheme;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the CCR, RMA, Complaints, REP and FIN074 returns for the periods
between 1 April 2021 and 30 September 2023 which the Firm was due to submit to the
Authority on various dates between 11 November 2021 and 10 November 2023;
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
5.
The Firm was authorised by the Authority on 25 September 2017 and has a Part 4A permission
to conduct the following regulated activities as mortgage intermediaries:
(a)
advising (ex Pension Transfers/Opt Outs);
(b)
advising on regulated mortgage contracts;
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(c)
arranging deals in investments;
(d)
arranging regulated mortgage contracts;
(e)
agreeing to carry on a regulated activity;
(f)
credit broking;
(g)
debt counselling;
(h)
making arrangements with a view to transactions in investments; and
(i)
making arrangements with a view to regulated mortgage contracts.
6.
The Firm has failed to pay periodic fees and levies owed to the Authority as required under
the Handbook under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R
and 13.2.1R. In particular, the Firm has failed to pay:
(a) an invoice dated 9 August 2022 for periodic fees and levies of £ 1,795.67 which had
been due for payment by 8 September 2022.
7.
Additionally, the Firm is required to submit the Returns to the Authority by the relevant due
date in accordance with the following rules contained in SUP 16.3.11R, SUP 16.3.13R, SUP
16.12.3R, SUP 16.12.4R, SUP 16.12.29CR, SUP 16.12.28AR and DISP. However, the Firm has
failed to submit the Returns to the Authority. The Authority therefore considers that the Firm
has failed to provide information to the Authority as is required by the Handbook, namely the
information it is required to provide in the Returns.
8.
Moreover, under SUP 16.10.4R, 16.10.4AR and 16.10.4AAR, the Firm is required to submit the
FDA to the Authority by the relevant due date. However, the Firm has failed to submit the FDA
to the Authority. The Authority therefore considers that the Firm has failed to provide
information to the Authority as is required by the Handbook, namely the information it is
required to provide in the FDA.
9.
Finally, under SUP 16.26.18R to 16.26.20R, the Firm is required to submit the Directory
Persons Attestation to the Authority within the relevant period. However, the Firm has failed
to submit the Directory Persons Attestation to the Authority. The Authority therefore considers
that the Firm has failed to provide information to the Authority as is required by the Handbook,
namely the information it is required to provide in the Directory Persons Attestation.
10.
On 1 March 2024, the Authority gave the Firm the Notice which:
(a)
stated that it appears to the Authority that the Firm is carrying on no regulated activity to
which its Part 4A permission relates;
(b)
invited the Firm to respond in a manner specified in the directions to the Notice; and
(c)
warned that the potential consequences of failing to respond in a manner specified in the
directions set out in the Notice was that the Authority may take action to cancel the Firm’s
Part 4A permission.
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11.
The Firm failed to respond to the Notice.
12.
As a result of the matters specified above, on 22 March 2024 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
b) the Authority proposes to cancel the Firm’s Part 4A permission on 19 April 2024 unless
the Firm takes the steps specified in the directions to the Further Notice.
13.
The Firm failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
14.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that the Firm is carrying on no regulated activity 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.
15.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
16.
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
17.
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.
18.
The Firm must submit a completed application for an annulment of the Authority’s decision to
the Authority by 18 April 2025 and in the manner specified by the Authority.
The Tribunal
19.
The Firm does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
20.
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.
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21.
For more information concerning this matter generally, the Firm should contact Maciej
Alexander Bajko (direct line: 020 7066 1838)
Angela Curtis
Enforcement and Market Oversight Division
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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.
Paragraph 1(3) of Schedule 6A of the Act provides that the circumstances in which the Authority
may form the view that an Authority-authorised person is carrying on no regulated activity
include (but are not limited to) circumstances where the person fails—
(a)
to pay any periodic fee or levy as is required by the Handbook, or
(b)
to provide such information to the Authority as is required by the Handbook.
4.
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
5.
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 are set out below.
Relevant Rules
6.
FEES 4.2.1R requires that:
“A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer
must pay each periodic fee applicable to it, calculated in accordance with the provisions
referred to in column (2) of the applicable table, as adjusted by any relevant provision
in this chapter:
(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and
(2)
on or before the date given in column (3) of that table, unless FEES 4.2.10 R
applies.”
7.
FEES 4.3.1R states that:
“The periodic fee payable by a firm (except an AIFM qualifier, ICVC or a UCITS qualifier)
is:
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(1)
each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R,
using information obtained in accordance with FEES 4.4; plus
(1A)
any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R
using information relating to its UK business obtained in accordance with FEES
4.4 (or by other means in the case of the Bank of England); less
(2)
any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR or
Part 7 of FEES 4 Annex 11R.”
8.
FEES 5.7.1R requires that:
“A firm must pay annually to the [Authority] the general levy on or before the later of
1 April and 30 calendar days after the date when the invoice is issued by the
[Authority].”
9.
FEES 6.7.1R requires that:
“A participant firm that is not within FEES 6.7.-1R, must pay its share of any levy made
by the FSCS in one payment”.
10.
FEES 6.7.3R states that:
“A participant firm's share of a levy to which FEES 6.7.1R applies is due on, and payable
within 30 days of, the date when the invoice is issued.”
11.
FEES 7A.3.1R requires that:
“A firm must pay the SFGB money advice levy or SFGB debt advice levy applicable to
it:
(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and
(2)
by 1 August or, if later, within 30 days of the date of the invoice in the fee year
to which that sum relates.
12.
FEES 13.2.1R requires that:
“A firm must pay each IML levy applicable to it:
(1)
in full and without deduction by 1 August (or, if later, within 30 days of the date
of the invoice) in the financial year to which the sum relates; and
(2)
in accordance with the rules in this chapter.
13.
SUP 16.3.11R requires that:
“A firm must submit reports required under this chapter to the [Authority] containing all the
information required.”
14.
SUP 16.3.13R(1) requires that:
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“A firm must submit a report required by this chapter in the frequency, and so as to be received
by the [Authority] no later than the due date, specified for that report.”
15.
SUP 16.3.13R(4) states that:
“If the due date for submission of a report required by this chapter is a set period of time after
the end of a half-year, a quarter, or a month, the dates will be determined by (a) or (b) below
except where otherwise indicated:
(a) the firm's accounting reference date;
(b) monthly, 3 monthly or 6 months after the firm's accounting reference date, as the case may
be.”
16.
The Firm falls within RAG12, 9.1, 9.2. A firm’s RAG dictates specific reporting requirements for
that firm, based on regulated activities which the firm has permission to carry on and arise from
the rules contained in SUP, which stipulates the data item or regulatory report, frequency and
the date by which the relevant data item or regulatory report is required to be submitted. The
Firm is also subject to reporting requirements under rules contained in DISP. The reporting
requirements relevant to the Firm are set out in the rules specified in paragraph 7 of this Notice.
17.
SUP 16.10.4R specifies that:
“(1) Within 60 business days of its accounting reference date, a firm must check the
accuracy of its firm details through the relevant section of the [Authority] website.
(3) If any of the details are incorrect, the firm must submit the corrected firm details to
the [Authority] using the appropriate form set out in SUP 15 Ann 3 and in accordance
with SUP 16.10.4AR.”
18.
SUP 16.10.4AR(1) specifies that:
“A firm must submit any corrected firm details under SUP 16.10.4R(3) using the
appropriate online systems accessible through the [Authority’s] website.”
19.
SUP 16.10.4AAR, which applies where, in complying with SUP 16.10.4R(1), a firm does not need
to submit corrected firm details under SUP 16.10.4R(3), specifics that:
“(2) Within 60 business days of its accounting reference date, a firm must submit a
report to the [Authority] confirming that the firm details which it has checked under
SUP 16.10.4R(1) remain accurate, using the appropriate online systems accessible
through the [Authority’s] website.”]
20.
SUP 16.26.18R specifies that:
“(1) Paragraph (2) applies where an SMCR has not submitted any reports to the
[Authority] in respect of a Directory person in accordance with the provisions of this
section within the relevant period […].
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(2) An SMCR firm must submit a report to the [Authority] confirming that the
information previously reported by the firm in respect of its Directory persons remains
accurate and up-to-date.
(3) The confirmation to be submitted to the [Authority] under paragraph (2) must be
submitted no later than the first business day following the end of the relevant period”.
21.
SUP 16.26.19R specifies that an SMCR firm may submit a confirmation of accuracy at any time.
22.
SUP 16.26.20R specifies that:
“(1) For the purposes of SUP 16.26.18R, the “relevant period” is the period which:
(a) starts on the day on which the SMCR firm last:
(i) submitted a report to the [Authority] in respect of any of its Directory
persons; or
(ii) submitted a confirmation in accordance with SUP 16.26.18R;
(iii) submitted a confirmation in accordance with SUP 16.26.19R; and
(b) subject to (2), ends 364 days after the day specified in (a).
(2) If the relevant period includes the 29 February of a given year, the period ends 365
days after the day specified in paragraph (1)(a).”
Guidance concerning the use of the Authority’s additional power to cancel an
authorised firm’s Part 4A permission on its own initiative
23.
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.
24.
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.
25.
EG 8.5.2A also states that Schedule 6A specifies that the Authority may form the view that a
firm is carrying on no such regulated activity on the basis of its failure to pay a periodic fee or
levy or provide information to the Authority, in each case as required by the Handbook.
26.
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, including, without restriction, if the person has failed to:
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(a)
pay a periodic fee or levy under the Handbook; or
(b)
provide the Authority with information required under the Handbook; 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
(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.
27.
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 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.
28.
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.
ACTION
1.
The Authority has decided to cancel the Firm’s Part 4A permission.
2.
The Authority has taken this action because, based on the facts and matters set out below, it
considers that the Firm is carrying on no regulated activity to which the Firm’s Part 4A permission
relates.
3.
The cancellation takes effect on the date of this Notice of Decision. The effect of the cancellation
is that the Firm no longer has permission to carry on any regulated activities.
DEFINITIONS
4.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
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“the Authority” means the Financial Conduct Authority;
“Directory Persons Attestation” means the report which an SMCR firm (as defined in the
Handbook) is required to submit to the Authority in accordance under SUP 16.26;
“DISP” means the Dispute Resolution: Complaints Manual which is part of the Handbook;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“the Firm” means SkyBlue Financial Services Ltd;
“the Firm’s Part 4A permission” means the Part 4A permission granted by the Authority to the
Firm;
“FSCS” means the Financial Services Compensation Scheme;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the CCR, RMA, Complaints, REP and FIN074 returns for the periods
between 1 April 2021 and 30 September 2023 which the Firm was due to submit to the
Authority on various dates between 11 November 2021 and 10 November 2023;
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
5.
The Firm was authorised by the Authority on 25 September 2017 and has a Part 4A permission
to conduct the following regulated activities as mortgage intermediaries:
(a)
advising (ex Pension Transfers/Opt Outs);
(b)
advising on regulated mortgage contracts;
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(c)
arranging deals in investments;
(d)
arranging regulated mortgage contracts;
(e)
agreeing to carry on a regulated activity;
(f)
credit broking;
(g)
debt counselling;
(h)
making arrangements with a view to transactions in investments; and
(i)
making arrangements with a view to regulated mortgage contracts.
6.
The Firm has failed to pay periodic fees and levies owed to the Authority as required under
the Handbook under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R
and 13.2.1R. In particular, the Firm has failed to pay:
(a) an invoice dated 9 August 2022 for periodic fees and levies of £ 1,795.67 which had
been due for payment by 8 September 2022.
7.
Additionally, the Firm is required to submit the Returns to the Authority by the relevant due
date in accordance with the following rules contained in SUP 16.3.11R, SUP 16.3.13R, SUP
16.12.3R, SUP 16.12.4R, SUP 16.12.29CR, SUP 16.12.28AR and DISP. However, the Firm has
failed to submit the Returns to the Authority. The Authority therefore considers that the Firm
has failed to provide information to the Authority as is required by the Handbook, namely the
information it is required to provide in the Returns.
8.
Moreover, under SUP 16.10.4R, 16.10.4AR and 16.10.4AAR, the Firm is required to submit the
FDA to the Authority by the relevant due date. However, the Firm has failed to submit the FDA
to the Authority. The Authority therefore considers that the Firm has failed to provide
information to the Authority as is required by the Handbook, namely the information it is
required to provide in the FDA.
9.
Finally, under SUP 16.26.18R to 16.26.20R, the Firm is required to submit the Directory
Persons Attestation to the Authority within the relevant period. However, the Firm has failed
to submit the Directory Persons Attestation to the Authority. The Authority therefore considers
that the Firm has failed to provide information to the Authority as is required by the Handbook,
namely the information it is required to provide in the Directory Persons Attestation.
10.
On 1 March 2024, the Authority gave the Firm the Notice which:
(a)
stated that it appears to the Authority that the Firm is carrying on no regulated activity to
which its Part 4A permission relates;
(b)
invited the Firm to respond in a manner specified in the directions to the Notice; and
(c)
warned that the potential consequences of failing to respond in a manner specified in the
directions set out in the Notice was that the Authority may take action to cancel the Firm’s
Part 4A permission.
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11.
The Firm failed to respond to the Notice.
12.
As a result of the matters specified above, on 22 March 2024 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
b) the Authority proposes to cancel the Firm’s Part 4A permission on 19 April 2024 unless
the Firm takes the steps specified in the directions to the Further Notice.
13.
The Firm failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
14.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that the Firm is carrying on no regulated activity 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.
15.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
16.
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
17.
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.
18.
The Firm must submit a completed application for an annulment of the Authority’s decision to
the Authority by 18 April 2025 and in the manner specified by the Authority.
The Tribunal
19.
The Firm does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
20.
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.
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Notice of Decision
21.
For more information concerning this matter generally, the Firm should contact Maciej
Alexander Bajko (direct line: 020 7066 1838)
Angela Curtis
Enforcement and Market Oversight Division
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22 April 2024
Notice of Decision
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.
Paragraph 1(3) of Schedule 6A of the Act provides that the circumstances in which the Authority
may form the view that an Authority-authorised person is carrying on no regulated activity
include (but are not limited to) circumstances where the person fails—
(a)
to pay any periodic fee or levy as is required by the Handbook, or
(b)
to provide such information to the Authority as is required by the Handbook.
4.
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
5.
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 are set out below.
Relevant Rules
6.
FEES 4.2.1R requires that:
“A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer
must pay each periodic fee applicable to it, calculated in accordance with the provisions
referred to in column (2) of the applicable table, as adjusted by any relevant provision
in this chapter:
(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and
(2)
on or before the date given in column (3) of that table, unless FEES 4.2.10 R
applies.”
7.
FEES 4.3.1R states that:
“The periodic fee payable by a firm (except an AIFM qualifier, ICVC or a UCITS qualifier)
is:
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(1)
each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R,
using information obtained in accordance with FEES 4.4; plus
(1A)
any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R
using information relating to its UK business obtained in accordance with FEES
4.4 (or by other means in the case of the Bank of England); less
(2)
any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR or
Part 7 of FEES 4 Annex 11R.”
8.
FEES 5.7.1R requires that:
“A firm must pay annually to the [Authority] the general levy on or before the later of
1 April and 30 calendar days after the date when the invoice is issued by the
[Authority].”
9.
FEES 6.7.1R requires that:
“A participant firm that is not within FEES 6.7.-1R, must pay its share of any levy made
by the FSCS in one payment”.
10.
FEES 6.7.3R states that:
“A participant firm's share of a levy to which FEES 6.7.1R applies is due on, and payable
within 30 days of, the date when the invoice is issued.”
11.
FEES 7A.3.1R requires that:
“A firm must pay the SFGB money advice levy or SFGB debt advice levy applicable to
it:
(1)
in full and without deduction (unless permitted or required by a provision in
FEES); and
(2)
by 1 August or, if later, within 30 days of the date of the invoice in the fee year
to which that sum relates.
12.
FEES 13.2.1R requires that:
“A firm must pay each IML levy applicable to it:
(1)
in full and without deduction by 1 August (or, if later, within 30 days of the date
of the invoice) in the financial year to which the sum relates; and
(2)
in accordance with the rules in this chapter.
13.
SUP 16.3.11R requires that:
“A firm must submit reports required under this chapter to the [Authority] containing all the
information required.”
14.
SUP 16.3.13R(1) requires that:
7
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“A firm must submit a report required by this chapter in the frequency, and so as to be received
by the [Authority] no later than the due date, specified for that report.”
15.
SUP 16.3.13R(4) states that:
“If the due date for submission of a report required by this chapter is a set period of time after
the end of a half-year, a quarter, or a month, the dates will be determined by (a) or (b) below
except where otherwise indicated:
(a) the firm's accounting reference date;
(b) monthly, 3 monthly or 6 months after the firm's accounting reference date, as the case may
be.”
16.
The Firm falls within RAG12, 9.1, 9.2. A firm’s RAG dictates specific reporting requirements for
that firm, based on regulated activities which the firm has permission to carry on and arise from
the rules contained in SUP, which stipulates the data item or regulatory report, frequency and
the date by which the relevant data item or regulatory report is required to be submitted. The
Firm is also subject to reporting requirements under rules contained in DISP. The reporting
requirements relevant to the Firm are set out in the rules specified in paragraph 7 of this Notice.
17.
SUP 16.10.4R specifies that:
“(1) Within 60 business days of its accounting reference date, a firm must check the
accuracy of its firm details through the relevant section of the [Authority] website.
(3) If any of the details are incorrect, the firm must submit the corrected firm details to
the [Authority] using the appropriate form set out in SUP 15 Ann 3 and in accordance
with SUP 16.10.4AR.”
18.
SUP 16.10.4AR(1) specifies that:
“A firm must submit any corrected firm details under SUP 16.10.4R(3) using the
appropriate online systems accessible through the [Authority’s] website.”
19.
SUP 16.10.4AAR, which applies where, in complying with SUP 16.10.4R(1), a firm does not need
to submit corrected firm details under SUP 16.10.4R(3), specifics that:
“(2) Within 60 business days of its accounting reference date, a firm must submit a
report to the [Authority] confirming that the firm details which it has checked under
SUP 16.10.4R(1) remain accurate, using the appropriate online systems accessible
through the [Authority’s] website.”]
20.
SUP 16.26.18R specifies that:
“(1) Paragraph (2) applies where an SMCR has not submitted any reports to the
[Authority] in respect of a Directory person in accordance with the provisions of this
section within the relevant period […].
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(2) An SMCR firm must submit a report to the [Authority] confirming that the
information previously reported by the firm in respect of its Directory persons remains
accurate and up-to-date.
(3) The confirmation to be submitted to the [Authority] under paragraph (2) must be
submitted no later than the first business day following the end of the relevant period”.
21.
SUP 16.26.19R specifies that an SMCR firm may submit a confirmation of accuracy at any time.
22.
SUP 16.26.20R specifies that:
“(1) For the purposes of SUP 16.26.18R, the “relevant period” is the period which:
(a) starts on the day on which the SMCR firm last:
(i) submitted a report to the [Authority] in respect of any of its Directory
persons; or
(ii) submitted a confirmation in accordance with SUP 16.26.18R;
(iii) submitted a confirmation in accordance with SUP 16.26.19R; and
(b) subject to (2), ends 364 days after the day specified in (a).
(2) If the relevant period includes the 29 February of a given year, the period ends 365
days after the day specified in paragraph (1)(a).”
Guidance concerning the use of the Authority’s additional power to cancel an
authorised firm’s Part 4A permission on its own initiative
23.
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.
24.
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.
25.
EG 8.5.2A also states that Schedule 6A specifies that the Authority may form the view that a
firm is carrying on no such regulated activity on the basis of its failure to pay a periodic fee or
levy or provide information to the Authority, in each case as required by the Handbook.
26.
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, including, without restriction, if the person has failed to:
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(a)
pay a periodic fee or levy under the Handbook; or
(b)
provide the Authority with information required under the Handbook; 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
(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.
27.
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 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.
28.
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.