NOTICE OF DECISION TO CANCEL

ACTION

1.
For the reasons set out below and pursuant to Regulations 34(7)(a) and 34(3)(c)
of the Money Laundering Regulations 2007 (the “MLR”), the Authority (the body
corporate previously known as the Financial Services Authority and renamed on 1
April 2013 as the Financial Conduct Authority) has decided to cancel the
registration granted to Allied Re Credit Limited (“ARCL”), as an Annex 1 financial
institution under the MLR.

REASONS FOR THE ACTION

2.
ARCL has failed to pay a charge imposed by the Authority. Therefore the
Authority may cancel ARCL’s registration under the MLR in accordance with
Regulation 34(7)(a) of the MLR, which permits cancellation of the registration of
an Annex 1 financial institution (as defined in Regulation 22(1)) where it appears
to the Authority that a condition in Regulation 34(3)(c) is met, including failure to
pay a charge imposed by the Authority under Regulation 35(1).

RELEVANT STATUTORY PROVISIONS

3.
The statutory and regulatory provisions relevant to this Notice of Decision to
Cancel are set out in the Annex.

FACTS AND MATTERS RELIED ON

4.
ARCL was authorised by the Authority on 17 January 2012 as an Annex 1
financial institution (as defined in Regulation 22(1) of the MLR).

5.
ARCL has failed to pay a charge of £400.00 comprising fees and levies imposed
by the Authority, which was due for payment by 15 August 2012.

6.
By its Notice of Proposed Cancellation dated 5 September 2013, the Authority
gave notice that it proposed to cancel ARCL’s registration as an Annex 1 financial
institution under the MLR and ARCL was given the opportunity to make
representations to the Authority about that proposed action.

7.
Regulation 34(9) of the MLR requires the Authority then to decide whether to
cancel ARCL’s registration.

8.
No representations have been received by the Authority from ARCL within the
time allowed by the Notice of Proposed Cancellation. The Authority has therefore
decided to cancel ARCL’s registration as an Annex 1 financial institution for the
reasons described above. The cancellation of ARCL will take effect on 23
December 2013.

PROCEDURAL MATTERS

Decision maker

9.
The decision which gave rise to the obligation to give this Notice of Decision to
Cancel was made by the Chairman of the Regulatory Decisions Committee.

10.
This Notice of Decision to Cancel is given to ARCL under Regulation 34(9)(b) and
is being served on ARCL at the address last notified to the Authority as ARCL’s
principal place of business.

The Upper Tribunal

11.
ARCL has the right to refer the matter to which this Notice of Decision to Cancel
relates to the Upper Tribunal. The Tax and Chancery Chamber is the part of the
Upper Tribunal which, among other things, hears references arising from
decisions of the Authority. Under paragraph 2(2) of Schedule 3 of the Tribunal
Procedure (Upper Tribunal) Rules 2008, ARCL has 28 days from the date on which
this Notice of Decision to Cancel is given to ARCL to refer the matter to the Upper
Tribunal.

12.
A reference to the Upper Tribunal is made by way of a reference notice (Form
FTC3) signed by ARCL (or on ARCL’s behalf) and filed with a copy of this Notice.
The Tribunal’s contact details are: The Upper Tribunal, Tax and Chancery
Chamber, 45 Bedford Square, London WC1B 3DN (tel: 020 7612 9700; email:
financeandtaxappeals@tribunals.gsi.gov.uk).

3

13.
Further details are contained in “Making a Reference to the UPPER TRIBUNAL (Tax
and Chancery Chamber)” which is available from the Upper Tribunal website:

14.
A copy of Form FTC3 must also be sent to Stephanie Prowse at the Authority, 25
The North Colonnade, Canary Wharf, London E14 5HS at the same time as filing a
reference with the Upper Tribunal.

Access to evidence

15.
A schedule and a copy of the material upon which the Authority has relied in
deciding to give ARCL this Notice of Decision to Cancel was given to ARCL with
the Notice of Proposed Cancellation.

Confidentiality and publicity

16.
This Notice may contain confidential information and should not be disclosed to a
third party (except for the purpose of obtaining advice on its contents).

17.
However, the Authority may publish such information about the matter to which a
Notice served under Regulation 34(9) relates as it considers appropriate. The
information published may contain reference to the facts and matters contained
in this Notice.

Contacts

18.
For more information concerning this matter generally, ARCL should contact
Stephanie Prowse at the Authority (direct line: 020 7066 9404).

Andrew Long
Chairman, Regulatory Decisions Committee

RELEVANT STATUTORY PROVISIONS

1.
Regulation 35(1) of the Money Laundering Regulations 2007 (the “MLR”) states:

“The Authority… may impose charges—

(a) on applicants for registration;

(b) on relevant persons supervised by them.”

2.
Regulation 34(7) of the MLR states:

“The Authority… may cancel a person’s registration in a register
maintained by them under regulation 32 if, at any time after registration -

(a) it appears to them that any condition in paragraph (3) is
met...”.

3.
Regulation 34(3) of the MLR states:

“The Authority… may refuse to register an applicant for registration in a
register maintained under regulation 32 only if—

(c) the applicant has failed to pay a charge imposed by the
Authority… under regulation 35(1).”

4.
Regulation 34(9) of the MLR states:

“The Authority… must then decide, within a reasonable period, whether to
cancel the person’s registration and it must give him notice of—

(b)(i) its decision to cancel his registration and … the date from
which the cancellation takes effect;

(ii)
the reasons for its decision; and

(iii)
the right to appeal under regulation 44(1)(b).

5.
Regulation 44(1) of the MLR states:

“A person may appeal from a decision by—

(b)
the Authority… under regulation 34

(2)
An appeal from a decision by—

(b)
the Authority is to the Upper Tribunal.”

OTHER RELEVANT REGULATORY PROVISIONS

6.
The Authority’s policy in relation to exercising its enforcement powers is set out in
the Enforcement Guide (“EG”), the relevant provisions of which are summarised
below.

7.
EG 19.77 provides that, in relation to the MLR, the Authority has decided to adopt
enforcement and decision making procedures, in relation to the use of its
investigation and sanctioning powers, broadly akin to those it has under the
Financial Services and Markets Act 2000 (the “Act”). The types of circumstances
in which the Authority will consider cancelling a firm’s Part 4A Permission under
the Act include failure to pay fees and levies owed to the Authority.

8.
EG 19.81 provides that, although the MLR do not require it, the Authority will
involve third parties and provide access to Authority material when it gives
notices under the Regulations, in a manner consistent with the provisions of
sections 393 and 394 of the Act.