FINAL NOTICE

Asma Ali
t/a Oyes Express
11 Summer Street
Aberdeen
AB10 1SB

TAKE NOTICE: The Financial Services Authority of 25 The North Colonnade,
Canary Wharf, London E14 5HS (“the FSA”) has taken the following action

1.
ACTION

1.1. By an application received by the FSA on 6 May 2010 (“the Application”) Asma Ali
trading as Oyes Express (“Oyes”) applied under Regulation 12 of the Payment Services
Regulations 2009 (“the PSRs”) for registration as a small payment institution and to
perform the money remittance payment services.

1.2. The Application is incomplete.

1.3. For the reasons listed below and pursuant to Regulation 9(2) of the PSRs, the FSA has
refused the Application.

2.
REASONS FOR ACTION

2.1. By its Warning Notice dated 10 June (“the Warning Notice”), issued pursuant to
Regulation 9(7) of the PSRs, the FSA gave notice that it proposed to refuse the
Application and that Oyes was entitled to make representations to the FSA about that
proposed action.

2.2. As no representations were received from Oyes by the FSA within the time allowed by
the Warning Notice, the default procedures in paragraph 2.3.2 of the FSA's Decision
Procedure and Penalties manual apply, permitting the FSA to treat the matters referred

to in its Warning Notice as undisputed. By its Decision Notice dated 14 July ("the
Decision Notice"), the FSA gave Oyes notice that it had decided to refuse the
application.

2.3. Under Regulation 9(9) of the PSRs Oyes had the right to refer the matter to the Upper
Tribunal (formerly known as the Financial Services and Markets Tribunal). No
reference was made to the Upper Tribunal within the time allowed by the Decision
Notice or to date.

2.4. On the basis of the facts and matters described below, the FSA has concluded that Oyes
does not satisfy, and will continue not to satisfy, the ‘Conditions for registration as a
small payment institution’ set out in Regulation 13 of the PSRs because of Oyes’
failure to respond to the FSA and provide the necessary information requested to enable
the FSA to determine the Application.

The Payment Services Regulations 2009

2.5. Regulation 12(1) requires an application for registration as a small payment institution
to contain, or be accompanied by, such information as the FSA may reasonably require.

2.6. Regulation 12(4) states that at any time after receiving an application and before
determining it, the FSA may require the applicant to provide it with such further
information as it reasonably considers necessary to enable it to determine the
application.

2.7. Regulation 13(1) states that the FSA may refuse to register an applicant as a small
payment institution only if any of the conditions set out in paragraphs (2) to (6) are not
met.

2.8. One of those conditions, set out in Regulation 13(2), is that the application must
comply with the requirements of, and any requirements imposed under, regulation 12.

2.9. Regulation 9(2) states that the FSA may determine an incomplete application if it
considers it appropriate to do so.

“The FSA’s role under the Payment Services Regulations 2009 – Our approach”

2.10. In exercising its powers in relation to the approval of an application for registration as a
small payment institution, the FSA must have regard to guidance published in the
FSA’s ‘Our approach’ document, including the section titled ‘Authorisation and
registration’.

2.11. The paragraphs relevant to the proposal to refuse the Application are set out below.

2.12. Paragraph 3.97: the FSA has to make a decision on a complete application within
three months of receiving it. An application is complete when the FSA has received all

the information and evidence needed for it to make a decision. The FSA will let the
applicant know if it needs more information.

2.13. Paragraph 3.98: in the case of an incomplete application, the FSA must make a
decision within 12 months of receipt. However, if that date is reached and discussions
with an applicant have not resulted in the FSA receiving all the information it needs to
make its decision, it is likely that the incomplete application will result in a refusal.
This is because it is unlikely that the FSA will have been able to satisfy itself that the
applicant has met the authorisation/registration requirements.

2.14. Paragraph 3.105: the FSA can refuse an application when the information and
evidence provided does not satisfy the requirements of the PSRs. When this happens
the FSA is required to give the applicant a Warning Notice setting out the reason for
refusing the application and allowing 28 days to make a representation on the decision.

Facts and Matters Relied Upon

2.15. The Application was received on 6 May 2010.

2.16. The FSA made a request for further information from Oyes on 20 May 2010 in order to
enable it to determine the Application, but received no response from Oyes.

2.17. Details of all the communications between the FSA’s Authorisations Division and Oyes
are set out below:

(a)
On 20 May 2010 Oyes was emailed questions resulting from the application,
requesting information with regard to the safeguarding of funds and the firm’s
accounting reference date.

(b)
After receiving no response, the Authorisation Division sent a further email to
Oyes on 7 July 2010, attaching the email of 20 May 2010.

(c)
On 29 December 2010 Oyes was sent an additional email setting out that there
was missing information and outlining that, in the absence of a full response to
the email or subsequent attempts to contact the firm, the FSA would be
minded to refuse the firm’s application and issue a Warning Notice. A copy of
the email dated 20 May 2010 was attached.

(d)
On 9 March 2011, a letter was sent to Oyes by special delivery to the address
provided to the FSA in the firm’s application. The letter stated that the
information requested on 7 July 2010 remained outstanding in respect of the
application and that without a full response the FSA would be minded to
refuse the firm’s application, in the absence of the information required in
order to determine the application.

(e)
On 9 March 2011 the FSA telephoned Oyes using the telephone number given
on the application. The FSA were able to speak with Mrs Ali and explained
that there had been no response to any of our attempts to contact Oyes and that
the application could not progress without the required information. Mrs Ali
explained that in addition to the Small PI application, Oyes was acting as an
agent. Mrs Ali stated that there had been no response as she had been away on
maternity leave but that she did want the Small PI application to progress.

(f)
On 23 March 2011, a further email was sent, again outlining the information
that was missing and that without a full response the FSA would be minded to
refuse the Oyes’ application and issue a Warning Notice on the grounds that it
had failed to provide the information needed for the FSA to determine the
application.

3.
CONCLUSIONS

3.1. Pursuant to Regulation 13(1) the FSA may refuse an application for registration as a
small payment institution only if any of the conditions in paragraphs (2) – (6) of
Regulation 13 are not met. The FSA is of the view that Regulations 13(1) and 13(2) are
not met.

3.2. Regulation 13(1) states that the FSA may refuse to register an applicant as a small
payment institution only if any of the conditions set out in paragraphs (2) to (6) are not
met.

3.3. Regulation 13(2) states that the application must comply with the requirements of, and
any requirements imposed under, Regulation 12.

3.4. Regulation 12(1) requires an application for registration as a small payment institution
to contain, or be accompanied by, such information as the FSA may reasonably require.

3.5. On the basis of the facts and matters described above, the FSA has therefore concluded
that Oyes does not satisfy and will continue not to satisfy, the ‘Conditions for
authorisation as a payment institution’ (Regulation 13) in relation to all of the payment
services for which Oyes would have permission if the application was granted.

4.
DECISION MAKER

4.1. The decision which gave rise to the obligation to give this Final Notice was made by
Mary O’Connor, Head of Department in the Authorisations Division on behalf of the
Regulatory Transactions Committee ("RTC"), in accordance with the provisions on
"non-responder" cases as set out in the terms of reference of that Committee.

5.
IMPORTANT NOTICES

5.1. Schedule 5, paragraph 7 of the PSRs applies certain provisions of the Financial
Services and Markets Act (“the Act”). This Final Notice is therefore issued pursuant to
paragraph 7 of Schedule 5 of the PSRs and section 390(1) of the Act.

5.2. Pursuant to paragraph 7 of Schedule 5 of the PSRs, sections 391(4), 391(6) and 391(7)
of the Act apply to the publication of information about the matter to which this Final
Notice relates. Under those provisions, the FSA must publish such information about
the matter to which the Final Notice relates as the FSA considers appropriate, and in
such manner as the FSA considers appropriate. However, the FSA may not publish
information if such publication would, in the opinion of the FSA, be unfair to Oyes or
prejudicial to the interests of consumers.

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

FSA contacts

5.4. For more information concerning this matter generally, please contact Jonathan
Bromberger, Manager, non-FSMA Team at the FSA (direct line 020 7066 9080 / email:
jonathan.bromberger@fsa.gov.uk)

Mary O’Connor
on behalf of the Regulatory Transactions Committee