FINAL NOTICE

ACTION

1.
By an application dated 29 July 2019 (“the Application”), Accident & Injury Assist (“AIA”)
applied under section 55A of the Act for Part 4A permission to carry on the regulated
activities of:

i.
agreeing to carry on a regulated activity;

ii.
advice, investigation or representation in relation to a criminal injury claim.

2.
The Application is incomplete.

3.
For the reasons listed below, the Authority has refused the Application.

SUMMARY OF REASONS

4.
By its Warning Notice dated 24 September 2020, the Authority gave notice that it
proposed to refuse the Application and that AIA was entitled to make representations to
the Authority about that proposed action.

5.
As no representations have been received by the Authority from AIA within the time
allowed by the Warning Notice, the default procedures in paragraph 2.3.2 of the
Authority’s Decision Procedure and Penalties Manual apply, permitting the Authority to

treat the matters referred to in its Warning Notice as undisputed and, accordingly, to
give a Decision Notice.

6. By its Decision Notice dated 10 November 2020, the Authority gave AIA notice that it had
decided to take the action described above.

7. AIA had 28 days from the date the Decision Notice was given to refer the matter to the
Tribunal. No referral was made to the Tribunal within this period of time or to date.

8. Under section 390(1) of the Act, the Authority, having decided to refuse the Application
and there having been no reference of that decision to the Tribunal, must give AIA Final
Notice of its refusal.

9. The Authority has decided to refuse the Application and to give this Final Notice as AIA
has failed to provide the information required by the Authority and, in the absence of the
information sought, the Authority cannot ensure that AIA will satisfy, and continue to
satisfy, the threshold conditions set out in Schedule 6 of the Act.

10.AIA failed to respond to at least six separate requests for the provision of information
considered by the Authority to be necessary to allow the Application to be determined.
The last request included a statement to the effect that AIA must contact the Authority
within 10 business days, or the Authority would recommend to the Authority’s Regulatory
Transactions Committee that AIA receive a Warning Notice.

11.The Authority has therefore determined the Application based upon the information
received to date, in circumstances where its requests for information have not been met.
Having reviewed that information, the Authority cannot ensure that AIA satisfies, and will
continue to satisfy, the threshold conditions.

12.Authorised firms (and those seeking authorisation) are expected to engage with the
Authority in an open and cooperative way. The failure to provide the requested
information raised concerns that AIA would fail to do so if the Application were to be
granted.

13.The failure to provide the information raised concerns as to whether AIA:

a.
can be effectively supervised by the Authority as required by Threshold Condition
2C (Effective Supervision);

b.
has appropriate human resources, given AIA’s failure to provide the Authority with
the requested information as required by Threshold Condition 2D (Appropriate
Resources); and

c.
will conduct its business with integrity and in compliance with proper standards
as required by Threshold Condition 2E (Suitability).

DEFINITIONS

14. The definitions below are used in this Final Notice.

“the Act” means the Financial Services and Markets Act 2000;

“the Application” means the application referred to in paragraph 1 above;

“the Authority” means the Financial Conduct Authority;

“the Decision Notice” means the Decision Notice dated 10 November 2020;

“the RDC” means the Authority’s Regulatory Decisions Committee;

“the RTC” means the Authority’s Regulatory Transactions Committee;

“SUP” means the Supervision section of the Authority’s handbook;

“SYSC” means the Senior Management Arrangements, Systems and Controls section of the
Authority’s handbook;

“the Tribunal” means the Upper Tribunal (Tax & Chancery Chamber); and

“the Warning Notice” means the warning notice dated 24 September 2020 given to AIA by
the Authority.

FACTS AND MATTERS

15. The Application was received by the Authority on 29 July 2019.

16. Further information was requested from AIA under section 55U(5) of the Act.

17. Details of all relevant communications between the Authority and AIA are set out below.

18. Between 26 February 2020 and 14 July 2020, the Authority sent AIA four emails, one
letter and made two telephone calls in an attempt to elicit information from AIA that
would assist the Authority in determining the Application.

19. On 25 November 2019, AIA contacted the Authority by telephone to inform the Authority
that it had applied for Part 4A permission to carry on the regulated activity of ‘advice,
investigation or representation in relation to a criminal injury claim’ in error.

20. On 14 December 2019, AIA emailed the Authority correcting an error on its Application
and requesting that the Authority note on its Application that it will not be dealing with
criminal injury claims.

21. On 26 February 2020, the Authority sent AIA an email requesting the following
information (“Outstanding Information”) by 11 March 2020:

i.
Vulnerable customer policy document

ii.
Compliance procedures document

22. AIA failed to provide the Outstanding Information by 11 March 2020.

23. On 25 March 2020, the Authority sent an email to AIA noting the lack of a response to
its email of 26 February 2019 and requested that AIA provide copies of the Outstanding
Information.

24. On 30 March 2020, the Authority attempted to contact AIA by telephone and left a
message with an individual for AIA to return the Authority’s call. AIA did not return the
Authority’s call.

25. On 2 April 2020, the Authority sent an email to AIA requesting the Outstanding
Information by 9 April 2020.

26. On 14 July 2020, the Authority attempted to contact AIA by telephone and the call was
unanswered. The Authority left a voicemail requesting that AIA return the Authority’s
telephone call. AIA did not return the Authority’s telephone call.

27. On 23 July 2020, the Authority sent a letter to AIA under cover of an email and by
recorded delivery, noting the lack of a response to its requests for the information and
requesting that AIA provide the compliance programme/procedures document within 10
business days, i.e. by 6 August 2020. The Authority informed AIA that a failure to provide
the information would result in the Application being determined on the information
received to date and that this might result in a recommendation to the RTC that it give
AIA a Warning Notice proposing to refuse the Application. Confirmation of delivery of the
letter was received by the Authority on 24 July 2020. AIA failed to provide the
Outstanding Information by 6 August 2020.

IMPACT ON THRESHOLD CONDITIONS

28. The regulatory provisions relevant to this Final Notice are referred to in Annex A.

29. AIA failed to respond to six separate requests for information the Authority considers
necessary to determine the Application. The final request gave AIA 10 business days to
respond, and included a statement to the effect that AIA must contact the Authority, or
the Authority would recommend to the RTC that AIA receives a Warning Notice.

30. The Authority has therefore determined the Application based upon the information
received to date, in circumstances where its requests for information have not been met.
Having reviewed that information, the Authority cannot ensure that AIA satisfies, and
will continue to satisfy, the Threshold Conditions.

31. Authorised firms (and those seeking authorisation) are expected to engage with the
Authority in an open and cooperative way. The failure to provide the requested
information raises concerns that AIA would fail to do so if the Application were to be
granted.

32. The failure to provide the information raises concerns as to whether AIA:

a. can be effectively supervised by the Authority as required by Threshold Condition
2C;

b. has appropriate human resources, given AIA’s failure to provide the Authority
with the requested information as required by Threshold Condition 2D; and

c. will conduct its business with integrity and in compliance with proper standards
as required by Threshold Condition 2E.

IMPORTANT NOTICES

33. This Final Notice is given under section 390(1) of the Act.

34. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of information
about the matter to which this Notice relates. Under those provisions, the Authority
must publish such information about the matter to which this Notice relates as the
Authority considers appropriate. The information may be published in such manner as
the Authority considers appropriate. However, the Authority may not publish information

if such publication would, in the opinion of the Authority, be unfair to you or prejudicial
to the interests of consumers or detrimental to the stability of the UK financial system.

35. The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.

Authority contacts

36. For more information concerning this matter generally, contact Tina Archer, Manager,
Claims Management Companies Department at the Authority (direct line: 020 7066
9188/ email: Tina.Archer@fca.org.uk).

James O’Connell
on behalf of the Regulatory Transactions Committee

ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL NOTICE

1.
Section 55A(1) of the Act provides for an application for permission to carry on one or
more regulated activities to be made to the appropriate regulator. Section 55A(2) defines
the “appropriate regulator” for different applications.

2.
Section 55B(3) of the Act provides that, in giving or varying permission, imposing or
varying a requirement, or giving consent, under any provision of Part 4A of the Act, each
regulator must ensure that the person concerned will satisfy, and continue to satisfy, in
relation to all of the regulated activities for which the person has or will have permission,
the threshold conditions for which that regulator is responsible.

3.
The threshold conditions are set out in Schedule 6 of the Act. In brief, the threshold
conditions relate to:

(1)
Threshold condition 2B: Location of offices

(2)
Threshold condition 2C: Effective supervision

(3)
Threshold condition 2D: Appropriate resources

(4)
Threshold condition 2E: Suitability

(5)
Threshold condition 2F: Business model

Relevant provisions of the Authority’s Handbook

4.
In exercising its powers in relation to the granting of a Part 4A permission, the Authority
must have regard to guidance published in the Authority Handbook, including the part
titled Threshold Conditions (“COND”). The main considerations in relation to the action
specified are set out below.

5.
COND 1.3.2G(2) states that, in relation to threshold conditions 2D to 2F, the Authority
will consider whether a firm is ready, willing and organised to comply on a continuing
basis with the requirements and standards under the regulatory system which will apply
to the firm if it is granted Part 4A permission.

6.
COND 1.3.3AG provides that, in determining the weight to be given to any relevant
matter, the Authority will consider its significance in relation to the regulated activities
for which the firm has, or will have, permission in the context of its ability to supervise
the firm adequately, having regard to the Authority’s statutory objectives. In this context,
a series of matters may be significant when taken together, even though each of them
in isolation might not give serious cause for concern.

7.
COND 1.3.3BG provides that, in determining whether the firm will satisfy, and continue
to satisfy, the Authority threshold conditions, the Authority will have regard to all relevant
matters, whether arising in the United Kingdom or elsewhere.

Threshold Condition 2C: Effective Supervision

8.
COND 2.3.3G states that, in assessing the threshold condition set out in paragraph 2C of
Schedule 6 to the Act, factors which the Authority will take into consideration include,
among other things, whether it is likely that the Authority will receive adequate
information from the firm to determine whether it is complying with the requirements
and standards under the regulatory system for which the Authority is responsible and to
identify and assess the impact on its statutory objectives; this will include consideration
of whether the firm is ready, willing and organised to comply with Principle 11 (Relations
with regulators) and the rules in SUP on the provision of information to the Authority.

Threshold condition 2D: Appropriate Resources

9.
COND 2.4.2G(2) states that the Authority will interpret the term 'appropriate' as meaning
sufficient in terms of quantity, quality and availability, and 'resources' as including all
financial resources (though only in the case of firms not carrying on, or seeking to carry
on, a PRA-regulated activity), non-financial resources and means of managing its
resources; for example, capital, provisions against liabilities, holdings of or access to cash
and other liquid assets, human resources and effective means by which to manage risks.

10. COND 2.4.2G(2A) provides that ‘non-financial resources’ of the firm include human
resources it has available.

11. COND 2.4.2G(3) states that high level systems and control requirements are in SYSC.
The Authority will consider whether the firm is ready, willing and organised to comply
with these and other applicable systems and controls requirements when assessing if it
has appropriate non-financial resources for the purpose of the threshold conditions set
out in threshold condition 2D.

Threshold condition 2E: Suitability

12. COND 2.5.2G(2) states that the Authority will also take into consideration anything that
could influence a firm's continuing ability to satisfy the threshold conditions set out in
paragraphs 2E and 3D of Schedule 6 to the Act. Examples include the firm's position
within a UK or international group, information provided by overseas regulators about
the firm, and the firm's plans to seek to vary its Part 4A permission to carry on additional
regulated activities once it has been granted that permission.

13. COND 2.5.4G(2)(a) states that examples of the kind of general considerations to which
the Authority may have regard when assessing whether a firm will satisfy, and continue
to satisfy, threshold condition 2E include, but are not limited to, whether the firm can
demonstrate that it conducts, or will conduct, its business with integrity and in compliance
with proper standards.

14. COND 2.5.6G provides that examples of the kind of particular considerations to which the
Authority may have regard when assessing whether a firm will satisfy, and continue to
satisfy, this threshold condition include, but are not limited to, whether the firm has been
open and co-operative in all its dealings with the Authority and any other regulatory body
(see Principle 11 (Relations with regulators)) and is ready, willing and organised to
comply with the requirements and standards under the regulatory system (such as the
detailed requirements of SYSC and, in relation to a firm not carrying on, or seeking to
carry on, a PRA-regulated activity only, the Prudential Standards part of the Authority’s
Handbook) in addition to other legal, regulatory and professional obligations; the relevant
requirements and standards will depend on the circumstances of each case, including the
regulated activities which the firm has permission, or is seeking permission, to carry on.