1

NOTICE OF DECISION

ACTION

1.
For the reasons given below, the Authority has decided to cancel Mr Afzal’s Part 4A permission.
The cancellation takes effect on 3 August 2023.


2.
The effect of the cancellation is that Mr Afzal 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;

“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;


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“FEES” means the Authority’s FEES Manual, part of the Handbook;

“FSCS” means the Financial Services Compensation Scheme;

“the Further Notice” means the further notice issued by the Authority to you dated 4 July
2023;

“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;

“Mr Afzal” means Waris Afzal;

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

“the Notice” means the notice issued by the Authority to you dated 18 May 2023;

“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 CCR007 returns in relation to the period from 6 April 2019 to 5 April
2022 which were due for submission on various dates between 20 May 2020 and 20 May
2022;

“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

4. Mr Afzal was authorised by the Authority on 31 May 2019 and has Part 4A permission to conduct

the following regulated activities in relation to consumer credit:

i.
agreeing to carry on a regulated activity;

ii.
credit broking;

iii.
debt adjusting; and

iv.
debt-counselling

5.
Mr Afzal 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, Mr Afzal has failed to pay:

a)
an invoice dated 9 August 2019 for periodic fees and levies of £143.18 which had been
due for payment by 8 September 2019;

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b)
an invoice dated 25 August 2020 for periodic fees and levies of £160.33 which had
been due for payment by 23 November 2020;

c)
an invoice dated 3 September 2021 for periodic fees and levies of £305.30 which had
been due for payment by 2 December 2021; and

d)
an invoice dated 6 September 2022 for periodic and levies of £408.24 which had been
due for payment by 6 October 2022.

6.
In addition, under SUP 16.3.13R, 16.12.3R, SUP 16.12.4R and SUP 16.12.29CR, Mr Afzal is
required to submit the Returns to the Authority by the relevant due date. However, Mr Afzal
has failed to submit the Returns to the Authority.

7.
Furthermore, under SUP 16.10.4R, 16.10.4AR and 16.10.14AAR, Mr Afzal is required to submit
the FDA to the Authority by the relevant due date. However, Mr Afzal has failed to submit the
FDA to the Authority.


8.
The Authority therefore considers that Mr Afzal 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 and the FDA. There are no other matters that suggest Mr Afzal is carrying on
regulated activities.


9.
On 18 May 2023, the Authority gave Mr Afzal the Notice which stated that:

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

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

10.
Mr Afzal failed to respond to the Notice.

11.
As a result of the matters specified above, on 4 July 2023, the Authority gave Mr Afzal the
Further Notice which stated that:

a) the Authority considered that Mr Afzal is carrying on no regulated activity to which his

Part 4A permission relates; and


b) the Authority proposes to cancel Mr Afzal’s Part 4A permission on 3 August 2023 unless

Mr Afzal takes the steps specified in the directions to the Further Notice.

12.
Mr Afzal failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION

13.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that Mr Afzal is carrying on no regulated activity to which
his Part 4A permission relates. The Authority has therefore decided to cancel Mr Afzal’s Part 4A
permission. The cancellation of Mr Afzal’s Part 4A permission takes effect the date of this Notice
of Decision.


14.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.

PROCEDURAL MATTERS



15.
This Notice of Decision is given to Mr Afzal 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

16.
If Mr Afzal is aggrieved by the decision to cancel his Part 4A permission as set out in this Notice
of Decision, Mr Afzal may make an application for an annulment of the Authority’s decision
under paragraph 4 of Schedule 6A to the Act.


17.
Mr Afzal must submit a completed application for an annulment of the Authority’s decision to
the Authority by 2 August 2024 and in the manner specified by the Authority.

The Tribunal

18.
Mr Afzal does not have a right to refer the decision to give this Notice of Decision to the Tribunal.


19.
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.

20.
For more information concerning this matter generally, Mr Afzal should contact Hana Ashraf
(direct line: 020 7066 3147).

Anna Couzens
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 of Decision 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.”

10.
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].”

11.
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”.

12.
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.”

13.
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.

14.
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.

10. SUP 16.3.13R(1) requires that:

“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:

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“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 specific reporting requirements for Mr Afzal are set out in SUP 16.12.3R, SUP 16.12.4R
and SUP 16.12.29CR which stipulate the type, frequency and due date of the regulatory report
which Mr Waris Afzal is required to submit, according to the regulated activities which Mr Afzal
has permission to conduct:

RAG Number
Return(s)
applicable

(Relevant rule)

Frequency of

return(s) to be

submitted

(Relevant rule)

Due date of

return(s) to be

submitted

(Relevant rule)

RAG 12

(Credit-related
regulated
activity)

(SUP

30 business days

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 16.10.14R(3) using the
appropriate online systems accessible through the [Authority’s] website.”


19.
SUP 16.10.14AAR, which applies where, in complying with SUP 16.10.14R(1), a firm does not
need to submit corrected firm details under SUP 16.10.14R(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 16.10.14R(1) remain accurate, using the appropriate online systems accessible
through the [Authority’s] website.”

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

20.
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.


21.
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.

22.
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.


23.
SUP sets out further guidance on the Authority’s power under Schedule 6A of the Act. In
particular, SUP 7.2.2AG 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:

(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.

1. 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.

24.
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.