Topic: Failing the FCA Threshold Conditions
Subject of Enforcement: Gedik International LTD
Date of Notice: 18th June 2021
Overview: On 27th March 2020, an application was received by the Financial Conduct Authority from Gedik International LTD to vary it Part 4A permission to include the following: a. Arranging, safeguarding and administration of assets; and b. Rolling Spot FX (across all current activities for which the firm has permission).
The firm applied to vary its permission to enable it to trade in an additional financial product but told the Authority that this variation would not affect the firm’s business model or financial forecasts. The Authority considers this is not correct. The additional permission sought by the firm would enable the firm to trade a new product, creating a new, prospective stream of revenue and with a different operational flow, thereby necessitating changes to the firm’s internal systems.
The firm’s contention that the proposed variation would not result in the changes the Authority has identified is wrong and indicates that the firm cannot be relied on to supply the Authority with accurate or reliable information relating to the matters in the Application. The Authority therefore considers that, if the Application were granted, the firm would not satisfy, and continue to satisfy, the Effective Supervision threshold condition. On the basis of these facts the Authority also considers that the firm does not have appropriate non financial resources, including systems and controls which are fit for purpose and adequately skilled and competent human resources, in relation to the regulated activities for which it would have permission if the application were granted.
Penalty: Application refusal.
Original Notice: https://www.fca.org.uk/publication/final-notices/gedik-international-ltd-2021.pdf
Topic: Failure to notify the FCA of a Change in Control
Subject of Enforcement: Ms Sherrie Jean Thackray
Date of Notice: 11th May 2021
Overview: The FCA Found that Ms Sherrie Jean Thackray acquired control In a regulated firm without the FCA’s prior approval. The Firm was established on 21 March 2017 as Kimberly Forex UK Limited. It is a Payment Services Firm (Small Payments Institution (“SPI”) registered with the Authority on 15 May 2018 for the regulated activity of “Money Remittance”. It changed its name to Ipayguru Limited on 17 July 2019 and subsequently to Transfer Gurus Ltd on 2 December 2019. Ms Thackray acquired 100% ownership of the Firm on 1 September 2019. Ms Thackray is a British national and a UK resident but has indicated in her email on 10 September 2020 that at the time, she was in the United Arab Emirates (“the UAE”). According to the Companies House Register, she is the only active director at the Firm.
Ms Thackray:
(1) Failed to seek the Authority’s approval prior to acquiring control in the Target.
(2) Formally notified the Authority almost a year after acquiring control in the Target and almost three months after having been asked by the Authority to update its records.
(3) Failed to submit a complete Notification when notifying the Authority retrospectively.
(4) Failed to respond to the Authority’s requests for a complete Notification, having been granted the additional time she requested in which to do so.
(5) Failed to respond to the above requests having been informed that it is a criminal offence to acquire control without approval.
For the reasons set out above and pursuant to section 390(1) of the Act, the Authority has decided to object to Ms Sherrie Jean Thackray’s control over Transfer Gurus Limited and issue a Final Notice.
Penalty: Application refusal.
Original Notice: https://www.fca.org.uk/publication/final-notices/sherrie-jean-thackray.pdf
Topic: Fit and Proper Failure
Subject of Enforcement: Mr Ian Berry
Date of Notice: 11th June 2021
Overview: The Financial Conduct Authority has cancelled Mr Berry’s part 4 A permissions.
Mr Berry 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. Mr Berry has thereby failed to deal openly and cooperatively with the Authority in breach of Principle 11 of the Principles (by not providing up to date and correct contact details) and to demonstrate that he is ready, willing and organised to comply with the requirements and standards under the regulatory system.
These failures lead the Authority to conclude that Mr Berry is failing to manage his business in such a way to ensure that his affairs will be conducted in a sound and prudent manner, that he is not a fit and proper person having regard to all the circumstances, and that he is therefore failing to satisfy the Threshold Conditions in relation to the regulated activities for which he was granted a Part 4A permission.
Penalty: Cancellation of Authorisation.
Original Notice: https://www.fca.org.uk/publication/final-notices/ian-berry-2021.pdf
Topic: Failing the FCA Threshold Conditions
Subject of Enforcement: Mr Michael Milner
Date of Notice: 9th June 2021
Overview: The Financial Conduct Authority found that Mr Milner has failed to satisfy their suitability Threshold Condition. Mr Milner has failed to pay his Overdue Balance and he has not been open and co-operative in all his dealings with the Authority, in that Mr Milner has failed to respond to the Authority’s repeated requests for him to pay the Overdue Balance and has thereby failed to comply with Principle 11 of the Principles and to satisfy the Authority that he is ready, willing and organised to comply with the requirements and standards of the regulatory system.
These failures, which are significant in the context of Mr Milner’s suitability, lead the Authority to conclude that Mr Milner has failed to manage his business in such a way as to ensure that his affairs are conducted in a sound and prudent manner, that he is not a fit and proper person, and that he is therefore failing to satisfy the Threshold Conditions in relation to the regulated activities for which he has had a permission. As a result, the Authority has decided on 9th June 2021 to cancel Mr Milner’s Part 4A permission.
Penalty: Cancellation of Authorisation.
Original Notice: https://www.fca.org.uk/publication/final-notices/michael-milner-2021.pdf