12 Endeavour Square
London
E20 1JN

Tel: +44 (0)20 7066 1000
Fax: +44 (0)20 7066 1099
www.fca.org.uk

NOTICE OF DECISION

To:
Birmingham Asian Resource Centre trading as BARC

ACTION

1. The Authority has decided to cancel the Firm’s Part 4A permission.

2. The Authority has taken this action because, based on the facts and matters set out below, it

considers that the Firm is carrying on no regulated activity to which the Firm’s Part 4A permission
relates.

3. The cancellation takes effect on the date of this Notice of Decision. The effect of the cancellation

is that the Firm no longer has permission to carry on any regulated activities.

DEFINITIONS

4. 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;

“EG” means the Enforcement Guide;

“FDA” means the Firm Details Attestation which Authority-authorised firms are required to submit
to the Authority under SUP 16.10;

“the Firm” means Birmingham Asian Resource Centre trading as BARC;

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

“the Further Notice” means the Further notice given by the Authority to the Firm dated 25 Jul
2024;

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

“the Notice” means the notice given by the Authority to the Firm dated 24 Jun 2024;

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

“RAG” means regulated activity group as referred to in SUP;

“the Returns” means the CCR007 for the period ended 31 Mar 2024 which the Firm was due to
submit to the Authority by 14 May 2024;

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

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

FACTS AND MATTERS

5. The Firm was authorised by the Authority on 01 Apr 2014 and has a Part 4A permission to conduct

the following regulated activities in relation to consumer credit business:

a) agreeing to carry on a regulated activity;
b) debt adjusting;
c) debt-counselling; and
d) providing credit information services.

6. Information submitted to the Authority by the Firm in regulatory returns for the period 01 Apr

2022 to 31 Mar 2023 shows that the Firm is not carrying on any regulated activities for which it
holds a Part 4A permission. There are no other matters that suggest the Firm is carrying on
regulated activities.

7. The Firm is required to submit the Returns to the Authority by the relevant due date in accordance

with the following rules contained in SUP 16.3.11R, SUP 16.3.13R, SUP 16.12.3R, SUP 16.12.4R
and SUP 16.12.29CR. However, the Firm has failed to submit the Returns to the Authority. The
Authority therefore considers that the Firm has failed to provide information to the Authority as
is required by the Handbook, namely the information it is required to provide in the Returns.

8. Under SUP 16.10.4R, 16.10.4AR and 16.10.4AAR, the Firm is required to submit the FDA to the

Authority by the relevant due date. However, the Firm has failed to submit the FDA to the
Authority.

9. On 24 Jun 2024, the Authority gave the Firm the Notice which stated that:

(a) it appears to the Authority that the Firm is carrying on no regulated activity to

which its Part 4A permission relates; and

(b) the Authority may take action to cancel the Firm’s Part 4A permission unless it

responds to the Notice in the manner specified in the directions to the Notice.

10. The Firm failed to respond to the Notice.

11. As a result of the matters specified above, on 25 Jul 2024, the Authority gave the Firm the Further

Notice which stated that:

(a) the Authority considered that the Firm is carrying on no regulated activity to which

its Part 4A permission relates; and

(b) the Authority proposes to cancel the Firm’s Part 4A permission on 19 Aug

2024 unless the Firm takes the steps specified in the directions to the Further
Notice. This date has subsequently been changed to 03 Sep 2024.

12. The Firm failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION

13. From the facts and matters described above and having regard to paragraph 1(3) of Schedule

6A to the Act, the Authority considers that the Firm is carrying on no regulated activity to which
its Part 4A permission relates. The Authority has therefore decided to cancel the Firm’s Part 4A
permission. The cancellation of the Firm’s Part 4A permission takes effect on the date of this
Notice of Decision.

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

Annexes.

PROCEDURAL MATTERS

15. This Notice of Decision is given to the Firm 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.

Annulment of the Authority’s decision

16. If the Firm is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice

of Decision, the Firm may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.

17. The Firm must submit a completed application for an annulment of the Authority's decision to the

Authority by 02 Sep 2025 and in the manner specified by the Authority.

The Tribunal

18. The Firm does not have a right to refer the decision to give this Notice of Decision to the Tribunal.

19. 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.

20. For more information concerning this matter generally, the Firm should contact Misba

Masood (direct line: 020 020 7066 0102).

Dawn Browne
Enforcement and Market Oversight Division

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. Paragraph 1(3) of Schedule 6A of the Act provides that the circumstances in which the Authority

may form the view that an Authority-authorised person is carrying on no regulated activity include
(but are not limited to) circumstances where the person fails—

(b) to provide such information to the Authority as is required by the Handbook.

4. 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

5. 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.

Relevant Rules

6. SUP 16.3.11R requires that:

“A firm must submit reports required under this chapter to the [Authority] containing
all the information required.”

7. SUP 16.3.13R(1) requires that:

“A firm must submit a report required by this chapter in the frequency, and so as to be
received by the [Authority] no later than the due date, specified for that report.”

8. SUP 16.3.13R(4) states that:

“If the due date for submission of a report required by this chapter is a set period of
time after the end of a half-year, a quarter, or a month, the dates will be determined
by (a) or (b) below except where otherwise indicated:

(a) the firm's accounting reference date;

(b) monthly, 3 monthly or 6 months after the firm's accounting reference date, as the

case may be.”

9. The Firm falls within RAG 12. A firm’s RAG dictates specific reporting requirements for that firm,

based on regulated activities which the firm has permission to carry on and arise from the rules
contained in SUP, which stipulates the data item or regulatory report, frequency and the date by
which the relevant data item or regulatory report is required to be submitted. The reporting
requirements relevant to the Firm are set out in the rules specified in paragraph 7 of this Notice
of Decision.

10. SUP 16.10.4R specifies that:

“(1) Within 60 business days of its accounting reference date, a firm must check the
accuracy of its firm details through the relevant section of the [Authority] website.

(3) If any of the details are incorrect, the firm must submit the corrected firm details
to the [Authority] using the appropriate form set out in SUP 15 Ann 3 and in accordance
with SUP 16.10.4AR.”

11. SUP 16.10.4AR(1) specifies that:

“A firm must submit any corrected firm details under SUP 16.10.4R(3) using the
appropriate online systems accessible through the [Authority’s] website.”

12. SUP 16.10.4AAR, which applies where, in complying with SUP 16.10.4R(1), a firm does not need

to submit corrected firm details under SUP 16.10.4R(3), specifics that:

“(2) Within 60 business days of its accounting reference date, a firm must submit a
report to the [Authority] confirming that the firm details which it has checked under
SUP 16.10.4R(1) remain accurate, using the appropriate online systems accessible
through the [Authority’s] website.”

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

13. 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.

14. 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.

15. EG 8.5.2A also states that Schedule 6A specifies that the Authority may form the view that a firm

is carrying on no such regulated activity on the basis of its failure to provide information to the
Authority, in each case as required by the Handbook.

16. SUP sets out further guidance on the Authority’s power under Schedule 6A of the Act. In

particular, SUP 7.2.2AG 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 including, without restriction, if the person has
failed to:

(b) provide the Authority with information required under the Handbook; 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.

17. 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 its 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.

18. 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.

19. 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.