Final Notice
On , the Financial Conduct Authority issued a Final Notice to Accord Mortgages Limited Christopher Gerald Thomas Brown
12 Endeavour Square
London
E20 1JN
Tel: +44 (0)20 7066 1000
Fax: +44 (0)20 7066 1099
www.fca.org.uk
FINAL NOTICE
PROPOSED ACTION
1. By an application dated 6 May 2021, Yorkshire Building Society (YBS) applied under
section 60 of the Act for approval of Christopher Gerald Thomas Brown to perform the
Senior Management Function SMF5 (Head of Internal Audit) at
Accord Mortgages
Limited (AML).
2. The Authority has decided to approve the Application for a time-limited period
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
SUMMARY OF REASONS
3. While the Authority considers that Mr Brown is fit and proper to hold the SMF5 function
for an interim basis, it does not consider that he would be suitable for the role on an
indefinite basis at this time.
4. YBS submitted its application for Mr Brown following the departure of the previous SMF5
function holder. YBS proposed to appoint him to the role on an interim basis pending
recruitment of a permanent SMF5 for AML.
5. Accordingly, the Authority proposes to approve the Application for a time-limited period
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
RELEVANT STATUTORY AND REGULATORY PROVISIONS
6. The relevant statutory and regulatory provisions are set out in Annex A to this Notice.
DEFINITIONS
[Please ensure that all defined terms are included in alphabetical order in the list below. You
should not have any definitions in the rest of the notice.]
7. The definitions below are used in this Warning Notice.
“AML” means Accord Mortgages Limited.
“SMF5” means the Head of Internal Audit function which is a designated senior manager
function described in SUP 10C.6A.6.
“the Act” means the Financial Services and Markets Act 2000.
“the Application” means the application referred to in paragraph 1 above.
“the Authority” means the body corporate previously known as the Financial Services
Authority and renamed on 1 April 2013 as the Financial Conduct Authority.
“SUP” means the section of the Handbook entitled “Supervision”.
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
“YBS” means Yorkshire Building Society.
FACTS AND MATTERS
8. AML is authorised and regulated by the Authority.
9. AML is an intermediary only lender and is part of the YBS Group. YBS is a controller
organisation and owns 50% or more of AML. AML’s product range includes New build,
Help to Buy and Buy to Let.
10. Mr Brown joined YBS in March 2021 as its Deputy Chief Internal Audit Officer.
11. Having assessed the Application, the FCA is satisfied as to the Candidate’s fitness and
propriety to perform the SMF5 role at AML on a time-limited basis as required pursuant
to section 61(1)(b) of the Act.
12. The Authority considers that approval for a time-limited period advances the its
objectives by: (i) ensuring that the Firm has an approved SMF5 and, as such, is
appropriately staffed; and (ii) allowing the Firm sufficient time to identify, and seek
approval for, a permanent successor to perform the SMF5 role.
13. Pursuant to section 61(2B)(b) of the Act, the Authority may grant a senior manager
application that is made under section 60 of the Act so as to give approval only for a
limited period if it appears to the Authority that it is desirable to do so in order to
advance one or more of its operational objectives (section 61(2C)(a) of the Act).
14. The Authority considers that it is appropriate in these circumstances to propose to
approve the Application for Mr Brown to perform the SMF5 role at AML for a limited
period commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
15. YBS and Mr Brown have consented to the approval of the Application for Mr Brown to
perform the SMF5 controlled function at AML for a limited period commencing on
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
DETERMINATION OF APPLICATION
16. The regulatory provisions relevant to this Notice are referred to in Annex A.
17. For the reasons given in this Notice, and pursuant to section 61(2B)(b) of the Act, the
Authority proposes to approve the Application for Mr Brown to perform the SMF5
controlled function in respect of AML for a limited period commencing on the date of
approval and until the earlier of: (a) 31 March 2021, or (b) the appointment and
approval of an individual to perform the SMF5 role on a permanent basis.
18. It appears to the Authority that it is desirable to approve the Application on a time-
limited basis in order to advance its operational objective of protecting and enhancing
the integrity of the UK financial system.
PROCEDURAL MATTERS
Decision maker
19. The decision which gave rise to the obligation to give this Final Notice was made by the
Executive Decision Maker.
20. This Final Notice is given in accordance with, section 390(1) of the Act.
Confidentiality and publicity
21. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of information
about the matter to which this Notice relates. Under those provisions, 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 Mr
Brown or to YBS, prejudicial to the interests of consumers or detrimental to the stability
of the UK financial system.
Authority contacts
22. For more information concerning this matter generally, contact
Manager, Authorisations Division at the Authority
x
.
…………………..
Executive Decision Maker
ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS WARNING NOTICE
23. The Authority’s operational objectives, established in section 1B of the Act, include
protecting and enhancing the integrity of the UK financial system (section 1D of the
Act).
24. Sections 61(1) and 61(2B) of the Act provides that the Authority may grant an
application for approval under section 60 of the Act only if it is satisfied that the person
in respect of whom the application is made is a fit and proper person to perform the
function to which the application relates or, in a case where the application is for
approval to perform a designated senior management function, it is satisfied that this
condition would be met if the application was granted subject to any conditions that the
Authority considers appropriate or if it is granted only for a limited period.
25. Section 61(2C) of the Act provides that the Authority may exercise the power to grant
an application only for a limited period only if it appears to the Authority that it is
desirable to do so in order to advance one or more of its operational objectives.
Relevant Regulatory Provisions
26. SUP 10C.6A.6 defines the SMF5 controlled function. SUP 10C.3.10R and 10C.4.3R,
taken together, provide that the SMF5 controlled function is a designated senior
management function.
27. SUP 10C.12 outlines the Authority’s approach to the use of time-limited approvals. SUP
10C.12.5G provides that factors the Authority will take into account include those
relating to the candidate and, in particular, the candidate’s fitness and propriety.
28. SUP 10C.12.7G and 10C.12.9G, taken together, provide that an example of
circumstances in which the Authority may use a time-limited approval include a situation
where a firm needs to appoint a candidate on an interim basis while it seeks to appoint
a permanent candidate. Further, in such cases the FCA may consider the candidate for
the interim role to be suitable on an interim, provisional basis, but not necessarily on a
permanent basis. SUP 10C.12.18G provides that the Authority will generally not impose
a time limitation of this type for a period of more than 12 to 18 months.
London
E20 1JN
Tel: +44 (0)20 7066 1000
Fax: +44 (0)20 7066 1099
www.fca.org.uk
FINAL NOTICE
PROPOSED ACTION
1. By an application dated 6 May 2021, Yorkshire Building Society (YBS) applied under
section 60 of the Act for approval of Christopher Gerald Thomas Brown to perform the
Senior Management Function SMF5 (Head of Internal Audit) at
Accord Mortgages
Limited (AML).
2. The Authority has decided to approve the Application for a time-limited period
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
SUMMARY OF REASONS
3. While the Authority considers that Mr Brown is fit and proper to hold the SMF5 function
for an interim basis, it does not consider that he would be suitable for the role on an
indefinite basis at this time.
4. YBS submitted its application for Mr Brown following the departure of the previous SMF5
function holder. YBS proposed to appoint him to the role on an interim basis pending
recruitment of a permanent SMF5 for AML.
5. Accordingly, the Authority proposes to approve the Application for a time-limited period
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
RELEVANT STATUTORY AND REGULATORY PROVISIONS
6. The relevant statutory and regulatory provisions are set out in Annex A to this Notice.
DEFINITIONS
[Please ensure that all defined terms are included in alphabetical order in the list below. You
should not have any definitions in the rest of the notice.]
7. The definitions below are used in this Warning Notice.
“AML” means Accord Mortgages Limited.
“SMF5” means the Head of Internal Audit function which is a designated senior manager
function described in SUP 10C.6A.6.
“the Act” means the Financial Services and Markets Act 2000.
“the Application” means the application referred to in paragraph 1 above.
“the Authority” means the body corporate previously known as the Financial Services
Authority and renamed on 1 April 2013 as the Financial Conduct Authority.
“SUP” means the section of the Handbook entitled “Supervision”.
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
“YBS” means Yorkshire Building Society.
FACTS AND MATTERS
8. AML is authorised and regulated by the Authority.
9. AML is an intermediary only lender and is part of the YBS Group. YBS is a controller
organisation and owns 50% or more of AML. AML’s product range includes New build,
Help to Buy and Buy to Let.
10. Mr Brown joined YBS in March 2021 as its Deputy Chief Internal Audit Officer.
11. Having assessed the Application, the FCA is satisfied as to the Candidate’s fitness and
propriety to perform the SMF5 role at AML on a time-limited basis as required pursuant
to section 61(1)(b) of the Act.
12. The Authority considers that approval for a time-limited period advances the its
objectives by: (i) ensuring that the Firm has an approved SMF5 and, as such, is
appropriately staffed; and (ii) allowing the Firm sufficient time to identify, and seek
approval for, a permanent successor to perform the SMF5 role.
13. Pursuant to section 61(2B)(b) of the Act, the Authority may grant a senior manager
application that is made under section 60 of the Act so as to give approval only for a
limited period if it appears to the Authority that it is desirable to do so in order to
advance one or more of its operational objectives (section 61(2C)(a) of the Act).
14. The Authority considers that it is appropriate in these circumstances to propose to
approve the Application for Mr Brown to perform the SMF5 role at AML for a limited
period commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
15. YBS and Mr Brown have consented to the approval of the Application for Mr Brown to
perform the SMF5 controlled function at AML for a limited period commencing on
commencing on 28 September 2021 until the earlier of 31 March 2022 or the
appointment and approval of an individual to perform the SMF5 role on a permanent
basis.
DETERMINATION OF APPLICATION
16. The regulatory provisions relevant to this Notice are referred to in Annex A.
17. For the reasons given in this Notice, and pursuant to section 61(2B)(b) of the Act, the
Authority proposes to approve the Application for Mr Brown to perform the SMF5
controlled function in respect of AML for a limited period commencing on the date of
approval and until the earlier of: (a) 31 March 2021, or (b) the appointment and
approval of an individual to perform the SMF5 role on a permanent basis.
18. It appears to the Authority that it is desirable to approve the Application on a time-
limited basis in order to advance its operational objective of protecting and enhancing
the integrity of the UK financial system.
PROCEDURAL MATTERS
Decision maker
19. The decision which gave rise to the obligation to give this Final Notice was made by the
Executive Decision Maker.
20. This Final Notice is given in accordance with, section 390(1) of the Act.
Confidentiality and publicity
21. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of information
about the matter to which this Notice relates. Under those provisions, 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 Mr
Brown or to YBS, prejudicial to the interests of consumers or detrimental to the stability
of the UK financial system.
Authority contacts
22. For more information concerning this matter generally, contact
Manager, Authorisations Division at the Authority
x
.
…………………..
Executive Decision Maker
ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS WARNING NOTICE
23. The Authority’s operational objectives, established in section 1B of the Act, include
protecting and enhancing the integrity of the UK financial system (section 1D of the
Act).
24. Sections 61(1) and 61(2B) of the Act provides that the Authority may grant an
application for approval under section 60 of the Act only if it is satisfied that the person
in respect of whom the application is made is a fit and proper person to perform the
function to which the application relates or, in a case where the application is for
approval to perform a designated senior management function, it is satisfied that this
condition would be met if the application was granted subject to any conditions that the
Authority considers appropriate or if it is granted only for a limited period.
25. Section 61(2C) of the Act provides that the Authority may exercise the power to grant
an application only for a limited period only if it appears to the Authority that it is
desirable to do so in order to advance one or more of its operational objectives.
Relevant Regulatory Provisions
26. SUP 10C.6A.6 defines the SMF5 controlled function. SUP 10C.3.10R and 10C.4.3R,
taken together, provide that the SMF5 controlled function is a designated senior
management function.
27. SUP 10C.12 outlines the Authority’s approach to the use of time-limited approvals. SUP
10C.12.5G provides that factors the Authority will take into account include those
relating to the candidate and, in particular, the candidate’s fitness and propriety.
28. SUP 10C.12.7G and 10C.12.9G, taken together, provide that an example of
circumstances in which the Authority may use a time-limited approval include a situation
where a firm needs to appoint a candidate on an interim basis while it seeks to appoint
a permanent candidate. Further, in such cases the FCA may consider the candidate for
the interim role to be suitable on an interim, provisional basis, but not necessarily on a
permanent basis. SUP 10C.12.18G provides that the Authority will generally not impose
a time limitation of this type for a period of more than 12 to 18 months.