FINAL NOTICE

FRN: 569070

Dated: 14 May 2020


ACTION

1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action against CIL.

2.
The Authority issued to CIL the Decision Notice which notified it that for the reasons
given below and pursuant to section 55J of the Act, the Authority had decided to
cancel CIL’s Part 4A permission.

3.
CIL has not referred the matter to the Tribunal within 28 days of the date on which
the Decision Notice was issued to it.

4.
Accordingly, the Authority has today cancelled CIL’s Part 4A permission.

DEFINITIONS

5.
The definitions below are used in this Final Notice:

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


“the Authority” means the Financial Conduct Authority;

“CIL” means Cesco Investments Ltd;

“CIL’s Part 4A permission” means the permission granted by the Authority to
CIL pursuant to Part 4A of the Act;

“the Decision Notice” means the Decision Notice issued to CIL dated 1
April 2020;



“DEPP” means the Authority’s Decision Procedure and Penalties manual;

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

“the Threshold Conditions” means the threshold conditions set out in Schedule 6

to the Act;

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

“the Warning Notice” means the Warning Notice issued to CIL dated 11 March

2020.

RELEVANT STATUTORY PROVISIONS

6.
The statutory and regulatory provisions relevant to this Final Notice are set out in
the Annex.

REASONS FOR ACTION

7.
By a First Supervisory Notice dated 5 November 2019, CIL’s Part 4A permission
was varied by removing all regulated activities with immediate effect, on the basis
that CIL is failing to satisfy the Threshold Conditions. Specifically, CIL does not
meet the requirements of the appropriate resources and suitability Threshold
Condition.

8.
Section 55J(8) of the Act provides that, if as a result of a variation of a Part 4A
permission under section 55J, there are no longer any regulated activities for which
the authorised person concerned has permission, the Authority must, once it is
satisfied that it is no longer necessary to keep the permission in force, cancel it.

9.
The Authority has concluded that it is so satisfied and accordingly has a duty to
cancel CIL’s Part 4A permission.

DECISION MAKER

10.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

11.
This Final Notice is given to CIL in accordance with section 390(1) of the Act.

Publicity

12.
The Authority must publish such information about the matter to which this Final
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 CIL or prejudicial to the interest of consumers.

13.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.

Authority Contact

14.
For more information concerning this matter generally, please contact Yasmin
Moore at the Authority (direct line: 020 7066 5439).

Martin Butcher
Enforcement and Market Oversight Division

ANNEX

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational establishment 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 section 55J of the Act to cancel an authorised
person’s Part 4A permission, where it appears to the Authority that such a person
is failing to satisfy the Threshold Conditions.

OTHER RELEVANT REGULATORY PROVISIONS

3.
The Authority’s policy in relation to its enforcement powers is set out in EG, certain
provisions of which are summarised below.

Cancelling a firm’s Part 4A permission on the Authority’s own initiative

4
EG 8.1.1(1) provides the Authority may use its own initiative power to vary or
cancel the permission of an authorised person under section 55J of the Act, where
the person is failing or is likely to fail to satisfy the Threshold Conditions for which
the Authority is responsible.

5
EG 8.5.3 states that, the Authority may need to consider whether it should first use
its own-initiative powers to vary a firm’s Part 4A permission before going on to
cancel it. Amongst other circumstances, the Authority may use this power where it
considers it needs to take immediate action against a firm because of the urgency
and seriousness of the situation.

6
EG 8.5.4 specifies that where this situation occurs, the Authority may first vary the
firm’s Part 4A permission so that there is no longer any regulated activity for which
the firm has a Part 4A permission. If it does this the Authority then has a duty to
cancel the firm’s Part 4A permission, once it is satisfied that it no longer necessary
to keep the Part 4A permission in force.