Amongst the latest set of firms to lose their FCA authorisation, one name stands out. A League Two English football club is amongst those stripped of their regulatory permissions by the regulator, and like so many firms who receive this punishment, the cancellation of their permission is due to a failure to submit the Consumer Credit CCR007 data return.
It is unclear exactly which of the club’s activities required consumer credit permissions, but whatever these activities were, the club is no longer authorised to carry them out. Suggestions in online conversation suggest that the club previously offered instalment payment plans for season tickets.
The FCA does not have the resources to carry out an annual monitoring visit at every firm it authorises, so one of the principal ways it monitors firms is to ask them to complete data returns, where a series of quantitative and qualitative data needs to be provided. Without this information, the FCA cannot supervise firms, so a cancellation of their regulatory permissions is the inevitable result of failing to submit a data return.
The FCA believes that failing to submit a data return is a breach of the suitability Threshold Condition, in that the Authority would not be satisfied that the firm is fit and proper. The actions of a firm in this situation would also constitute a failure to comply with Principle 11, which requires firms to co-operate with their regulators.
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