1

NOTICE OF DECISION

ACTION

1.
For the reasons given below, the Authority has decided to cancel Bangor Tyre Service Limited’s
Part 4A permission. The cancellation takes effect on the date of this Notice of Decision.


2.
The effect of the cancellation is that Bangor Tyre Service Limited no longer has permission to
conduct any regulated activities.


DEFINITIONS

3.
The definitions below are used in this Notice of Decision (and in the Annex):

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

“the Authority” means the Financial Conduct Authority;

“BTSL” means Bangor Tyre Service Limited;

“BTSL’s Part 4A permission” means the Part 4A permission granted by the Authority to BTSL;

“EG” means the Enforcement Guide;

“the Further Notice” means the further notice issued by the Authority to BTSL dated 31 May
2023;”

“the Handbook” means the Authority’s Handbook of rules and guidance;

“the Notice” means the notice issued by the Authority to BTSL dated 18 April 2023;


“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;

“SUP” means the Supervision Manual, part of the Handbook; and

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

FACTS AND MATTERS

4.
BTSL was authorised by the Authority on 1 June 2021 and given a Part 4A permission to conduct
the following regulated activities:

• Agreeing to carry on a regulated activity;
• Credit Broking;
• Debt Adjusting;and
• Debt-counselling

5.
BTSL submitted regulatory returns to the Authority for the periods 01 January 2021 to 31
December 2021 which show that BTSL has not generated any income from the regulated
activities it is permitted to carry on. In addition, there are no other matters that suggest BTSL
is carrying on regulated activities.

6.
On 18 April 2023 the Authority gave BTSL the Notice which stated that:

(a)
it appears to the Authority that BTSL is carrying on no regulated activity to which its Part
4A permission relates; and

(b)
the Authority may take action to cancel BTSL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.

7.
BTSL failed to respond in the manner specified in the directions to the Notice.

8.
As a result of the matters specified in paragraph 3 above, on 31 May 2023, the Authority gave
BTSL the Further Notice which stated that:

a) the Authority considered that BTSL is carrying on no regulated activity to which its Part

4A permission relates; and


b) the Authority proposes to cancel BTSL’s Part 4A permission on 26 June 2023 unless

BTSL takes the steps specified in the directions to the Further Notice.

9.
BTSL failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION

10.
From the facts and matters described above, the Authority considers that BTSL is carrying on
no regulated activities to which its Part 4A permission relates. The Authority has therefore
decided to cancel BTSL’s Part 4A permission. The cancellation of BTSL’s Part 4A permission
takes effect on the date of this Notice of Decision.


11.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.

PROCEDURAL MATTERS



12.
This Notice of Decision is given to BTSL under paragraph 3 of Schedule 6A to the Act (variation
or cancellation of Part 4A permission on initiative of FCA: additional power).


The following paragraphs are important.

The Tribunal

13.
BTSL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.


14.
The Authority intends to publish such information about the matter to which this Notice of
Decision relates as the Authority considers appropriate. The information may be published in
such manner as the Authority considers appropriate.


ANNEX ON CANCELLATION OF PART 4A PERMISSION ON INITIATIVE OF FCA:

ADDITIONAL POWER

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational objectives established in section 1B of the Act include protecting
and enhancing the integrity of the UK financial system and securing an appropriate degree of
protection for consumers.

2.
The Authority is authorised by paragraphs 1(1) and (2) of Schedule 6A to the Act to cancel an
Authority-authorised person’s Part 4A permission, if it appears to the Authority that the
Authority-authorised person is carrying on no regulated activity to which the permission
relates.


3.
The Authority must exercise its power to cancel an Authority-authorised person’s Part 4A
permission using its additional own initiative power in accordance with the procedure set out
in paragraph 2 of Schedule 6A to the Act.


RELEVANT HANDBOOK PROVISIONS

4.
In exercising its power to cancel an Authority-authorised person’s Part 4A permission, the
Authority must have regard to the regulatory requirements and guidance published in the
Handbook and in regulatory guides, such as EG. The main considerations relevant to the action
stated in this Notice of Decision are set out below.

Guidance concerning the use of the Authority’s additional power to cancel an authorised
firm’s Part 4A permission on its own initiative

5.
Guidance on the use of the Authority’s power to cancel an Authority-authorised person’s Part
4A permissions on its own initiative under Schedule 6A to the Act is set out in SUP and EG.


6.
EG 8.5.2A states that the Authority may cancel the Part 4A permission of a firm that is an
Authority-authorised person, under Schedule 6A of the Act, if:

(1) it appears to the Authority that the firm is carrying on no regulated activity to which

the permission relates; and

(2) the firm has failed to respond as directed by the Authority to notices served by the

Authority to the firm under paragraph 2 of Schedule 6A.

7.
SUP sets out further guidance on the Authority’s power under Schedule 6A of the Act. In
particular, SUP 7.2.2AG(1) states that the Authority may decide to cancel an Authority-
authorised person’s Part 4A permission using its powers under Schedule 6A of the Act:


(1) if that person appears to the Authority not to be carrying on any regulated activity to

which the permission relates; and

(2) if that person, when served by the Authority with two notices under paragraph 2 of

Schedule 6A of the Act, has not:

(a)
responded in the manner directed, in those notices or otherwise, by the
Authority; nor


(b)
taken other steps as may also be directed by the Authority;

the second of which notices will specify the effective date of the proposed cancellation.


8.
SUP 7.2.2CG states that, apart from the circumstances described in SUP 7.2.2AG(1), the
Authority may also form the view, under Schedule 6A of the Act, that a firm is no longer
conducting any regulated activity to which it permission relates in light of, without restriction:


(1) one or more reports, provided to the Authority by the firm, under SUP 16 or

otherwise, indicating that it is no longer doing so;

9.
SUP 7.2.2DG states that:

(1) the Authority’s additional own-initiative variation power under Schedule 6A to the Act

(which includes the power to cancel the Part 4A permission of an Authority-authorised
firm under Schedule 6A of the Act and references to “additional own-initiative
variation power in the remainder of this Notice of Decision should be read as such)
has, unlike the Authority’s own-initiative variation power under section 55J of the
Act, a single basis: that it appears to the Authority that the relevant Authority-
authorised person is not carrying on any regulated activity to which its Part 4A
permission relates.

(2) if the Authority uses its additional own-initiative variation power, it is therefore more

likely to cancel the relevant firm’s Part 4A permission, rather than merely varying it
by removing or amending the description of one or more such activities or by
imposing one or more limitations.

(3) the Authority will, however, consider all relevant facts and circumstances, including,

without restriction:

(a) the relevant firm’s responses, if any, to the notices given by the Authority under

paragraph 2 of Schedule 6A; and

(b) if applicable, the factors described in SUP 6.4.22G, including whether there are

any matters relating to the firm requiring investigation,

before deciding whether to use its additional own-initiative variation power and whether to use
it to cancel or vary.

10.
SUP 7.2.7G(1) states that a firm has no right of referral to the Tribunal in respect of the
Authority exercising its additional own-initiative variation power, under Schedule 6A to the Act,
on the Authority-authorised firm’s Part 4A permission.

1

FEES/DISP/COMP

1.
The Fees Manual (“FEES”), Dispute Resolution: Complaints sourcebook (“DISP”) and
Compensation sourcebook (“COMP”), chapters of the Handbook, contain rules making
provision for and guidance as to the effect of annulment.

2.
In summary, the effect of annulment is that any fees and levies that arose while the
authorised person’s Part 4A permission was cancelled become payable (unless the authorised
person has previously advised the Authority that it is exempt). Where the deadline for
obligations relating to the provision of information or payment of the various fees and levies
has passed before annulment, the relevant rules and guidance within FEES delay those
deadlines.

3.
The fees and levies the Authority collects and the relevant rules and guidance within FEES
are: Authority fees (FEES 4); Financial Ombudsman Service (FEES 5); Financial Services and
Compensation Scheme (FEES 6); Single Finance Guidance Body (SFGB – FEES 7A); Devolved
Debt Advice Levy (FEES 7B); Temporary Permissions Regime and Financial Service Contracts
Regime – SFGB Levy (FEES 7C); Temporary Permissions – Devolved Authorities Levy (FEES
7D); and Illegal Money Laundering Levy (FEES 13 and 13A).

DISP

4.
Where there is a complaint about an authorised person’s activities during the period when its
Part 4A permission was cancelled, the effect of an annulment is that the Ombudsman Service
may be able to consider the complaint (further to DISP 2.3.6G).

5.
Where a deadline for a complaints report that is to be submitted to the Authority in accordance
with DISP 1.10.5R occurs during the period of cancellation, the effect of an annulment is that
the authorised person must submit such report to the Authority within 30 business days of
the date on which the annulment takes effect (further to DISP 1.10.5AR).

COMP

6.
The effect of an annulment is that an authorised person will be treated as a participant firm
for the Financial Services and Compensation Scheme (“FSCS”) purposes for claims that may
arise in the period between cancellation and annulment (further to COMP 6.2.5G).

Right to refer matter to the Tribunal

7.
Under paragraph 7 of Schedule 6A to the Act, if an applicant submits a completed application
to annul by the date and in the form specified and the Authority determines that application
in accordance with paragraph 5(2) of Schedule 6A to the Act, by either deciding to grant the
annulment (with or without such conditions as the Authority considers appropriate) or by
refusing to grant the annulment, the applicant (and the Authority) will have the right to refer
the matter to the Tribunal.

8.
In determining a reference to the Tribunal, the Tribunal may give such directions, and may
make such provision, as it considers reasonable for placing the person and other persons in
the same position (as nearly as may be) as if the permission had not been cancelled.