The Financial Conduct Authority has cancelled the permission of a West Midlands-based credit broker after the firm did not demonstrate that it had a suitable senior manager in place.
Scott Robert Compliance, who provide services to help firms in their quest to become FCA authorised, believe that, in light of this news, it’s essential that all firms have sufficient measures in place to maintain their compliance in a heavily regulated industry.
A spokesman from the company said: ‘It is vital that firms adhere to their obligations once they obtain approval from the FCA. Having the relevant experience to understand the firm responsibilities is necessary to maintain the standards that the regulator expects”.
Regarding the FCA’s recent decision, the Final Notice mentions the broker ‘failing to satisfy the Threshold Conditions’ put in place by the Authority
The firm had one Approved Person until September 2020, when they resigned their position with the firm. Since then, the FCA has not received any application for anyone else to carry out a Senior Management Function at the firm.
It has not submitted a Form A – the form used to apply for individuals to carry out senior management functions, or a Form C – the form to be used to withdraw the approval of an individual who is no longer associated with the firm.
The firm has also failed to reply to communications from the FCA requesting that an application is made for someone to carry out a management function. In failing to do so, the FCA says the firm is in breach of Principle 11, which requires firms to be open and co-operative with regulators.
All firms must have at least one person designated as a Senior Manager, under the FCA’s Senior Managers & Certification Regime. The individual must have the skills, knowledge, experience and qualifications to carry out such a responsible role and approval must be sought from the regulator for this individual to carry out the role.
The Final Notice concludes by saying the firm’s ‘non-financial resources are not appropriate in relation to regulated activities that it carries on or seeks to carry on and it is failing to satisfy the appropriate resources Threshold Condition.’
Does your firm have adequate resources in place to ensure that you are compliant with the FCA’s requirements? Do you require additional support and guidance to ensure you are meeting your obligations?
Scott Robert can assist you with improving or maintaining your firm’s compliance framework to the standard that the FCA expect.
Don’t risk losing your permissions and ability to do business. If you would like to find out more about Scott Robert’s service offering, please call us on 0161 914 5727
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