Page 1 of 7

FINAL NOTICE

Clarity Vehicle Management Limited
101 Cornishway
Manchester
Greater Manchester
M22 1PA

ACTION

1. By an application number 207106377 dated 10 December 2020 (“the Application”),

Clarity Vehicle Management Limited (“Clarity Vehicle” or “the Applicant”) applied
under section 55A of the Act for Part 4A permission to carry on the regulated
activities of:

a.
Agreeing to carry on a regulated activity;

c.
Limited permission credit broking

d.
Broking of consumer hire or hire purchase

e.
Debt counselling with the following limitation - Limited to relevant credit
activity - This activity is limited to relevant credit activities as defined in
paragraph 2G of Schedule 6 of the Financial Services and Markets Act 2000

f.
Providing credit information services with the following limitation – Limited
to relevant credit activity - This activity is limited to relevant credit activities
as defined in paragraph 2G of Schedule 6 of the Financial Services and
Markets Act 2000

2. The Application is incomplete.

3. For the reasons listed below, the Authority has refused the Application.

SUMMARY OF REASONS

4. By its Warning Notice the Authority gave notice that it proposed to refuse the

application and that Clarity Vehicle was entitled to make representations to the
Authority about the proposed action.

Page 2 of 7

5. As no representations have been received by the Authority from Clarity Vehicle

within the time allowed by the Warning Notice, the default procedures in
paragraph 2.3.2 of the Authority’s Decision Procedure and Penalties Manual
apply, permitting the Authority to treat the matters referred to in its Warning
Notice as undisputed and, accordingly, to give a Final Notice.

DEFINITIONS

6. The definitions below are used in this Final Notice.

“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;

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

“SUP” means the Supervision section of the Authority’s handbook;

“SYSC” means the Senior Management Arrangements, Systems and Controls
section of the Authority’s handbook; and

“the Tribunal” means the Upper Tribunal (Tax & Chancery Chamber)

“the Warning Notice” means the warning notice dated 17 September 2021 given to
the applicant by the Authority.

FACTS AND MATTERS

7. The Application was received by the Authority on 10 December 2020

8. Further information was requested from Clarity Vehicle under section 55U(5) of the

Act.

9. The Authority contacted Clarity Vehicle on 2 July 2021 using the telephone contact

details in the Application. A call back was scheduled for 5 July 2021 to discuss the
Application.

10. The Authority contacted Clarity Vehicle on 5 July 2021 via telephone but there was

no response. A follow up e-mail was sent to Clarity Vehicle on the same day,
requesting that Clarity Vehicle provide the following information in support of the
Application by 9 July 2021:

a. A confirmation that a regulatory reference had been obtained for Mr

b. Whether the Providing Credit information Services with the following

limitation permission - Limited to relevant credit activities as defined in
paragraph 2G of Schedule 6 of the Financial Services and Markets Act 2000 -
was required or had been selected in error

11. Clarity Vehicle failed to provide the outstanding information by 9 July 2021.

Page 3 of 7

12. On 13 July 2021, the Authority attempted to contact Clarity Vehicle by telephone

using the contact details in the Application. There was no response. On the same
day, the Authority sent an email to Clarity Vehicle to request, by 20 July 2021, that
Clarity Vehicle respond to the Authority’s email dated 9 July 2021. Clarity Vehicle
failed to respond by 20 July 2021.

13. The Authority contacted Clarity Vehicle on 20 July 2021 via telephone but there

was no response.

14. On 10 August 2021, the Authority sent a letter to Clarity Vehicle by way of recorded

delivery, noting the lack of a response to its requests for the information and
informing it that a failure to provide the information would result in the Application
being determined based upon the information received to date and that this might
result in the Authority issuing Clarity Vehicle with a Warning Notice proposing to
refuse the Application. Clarity Vehicle failed to provide the outstanding information
by the stated deadline of 10 working days.

IMPACT ON THRESHOLD CONDITIONS

15. Clarity Vehicle has failed to respond to 3 separate requests for the provision of

information considered by the Authority to be necessary to allow the Application to
be determined. The final request gave Clarity Vehicle 10 business days to respond
and included a statement to the effect that Clarity Vehicle must contact the
Authority, or the Authority would issue Clarity Vehicle with a Warning Notice.

16. The Authority must therefore determine the Application based upon the information

received to date, in circumstances where its requests for information have not been
met. Having reviewed that information, the Authority cannot ensure that Clarity
Vehicle satisfies, and will continue to satisfy, the threshold conditions.

17. Authorised firms (and those seeking authorisation) are expected to engage with

the Authority in an open and cooperative way. The failure to provide the requested
information raises concerns that Clarity Vehicle would fail to do so if the Application
were to be granted.

18. The failure to provide the information raises concerns as to whether Clarity Vehicle:

a. can be effectively supervised by the Authority as required by threshold

condition 2C;

b. has appropriate human resources, given Clarity Vehicle’s failure to provide

the Authority with the requested information as required by threshold
condition 2D; and

c. will conduct its business with integrity and in compliance with proper

standards as required by threshold condition 2E.

The regulatory provisions relevant to this Final Notice are referred to in Annex
A.

Page 4 of 7

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 under section 55X(2) and in accordance with section 390

of the Act.

Confidentiality and publicity

21. Clarity Vehicle should note that this Final Notice may contain confidential

information and, unless it has been published by the Authority, should not be
disclosed to a third party (except for the purpose of obtaining advice on its
contents). Clarity Vehicle should also note that, under section 391(1A) of the Act,
a person to whom a Final Notice is given or copied may not publish the Notice or
any details concerning it unless the Authority has published the Notice or those
details.


22. Clarity Vehicle should also note, however, that the Authority must, under section

391(4) of the Act, publish such information about the matter to which a Final
Notice relates as it considers appropriate. A Decision Notice or Final Notice may
contain reference to the facts and matters contained in this Notice.

Authority contacts

23. For more information concerning this matter generally, contact Emily Pinkerton,

Manager, Credit and Lending Department at the Authority (direct line: 020 7066
1450 / email: emily.pinkerton@fca.org.uk).


Yours faithfully

Executive Decision maker on behalf of the Authority

Page 5 of 7

ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS WARNING NOTICE

1. Section 55A(1) of the Act provides for an application for permission to carry on one

or more regulated activities to be made to the appropriate regulator. Section
55A(2) defines the “appropriate regulator” for different applications.

2. Section 55B(3) of the Act provides that, in giving or varying permission, imposing

or varying a requirement, or giving consent, under any provision of Part 4A of the
Act, each regulator must ensure that the person concerned will satisfy, and
continue to satisfy, in relation to all of the regulated activities for which the person
has or will have permission, the threshold conditions for which that regulator is
responsible.

3. The threshold conditions are set out in schedule 6 of the Act. In brief, the threshold

conditions relate to:

(1)
Threshold condition 2B: Location of offices

(2)
Threshold condition 2C: Effective supervision

(3)
Threshold condition 2D: Appropriate resources

(4)
Threshold condition 2E: Suitability

(5)
Threshold condition 2F: Business model

Relevant provisions of the Authority’s Handbook

4. In exercising its powers in relation to the granting of a Part 4A permission, the

Authority must have regard to guidance published in the Authority’s Handbook,
including the part entitled Threshold Conditions (“COND”). The main considerations
in relation to the action specified are set out below.

5. COND 1.3.2G(2) states that, in relation to threshold conditions 2D to 2F, the

Authority will consider whether a firm is ready, willing and organised to comply on
a continuing basis with the requirements and standards under the regulatory
system which will apply to the firm if it is granted Part 4A permission.

6. COND 1.3.3AG provides that, in determining the weight to be given to any relevant

matter, the Authority will consider its significance in relation to the regulated
activities for which the firm has, or will have, permission in the context of its ability
to supervise the firm adequately, having regard to the Authority’s statutory
objectives. In this context, a series of matters may be significant when taken
together, even though each of them in isolation might not give serious cause for
concern.

7. COND 1.3.3BG provides that, in determining whether the firm will satisfy, and

continue to satisfy, the Authority threshold conditions, the Authority will have
regard to all relevant matters, whether arising in the United Kingdom or elsewhere.

8. COND 2.4.2G(2) states that the Authority will interpret the term 'appropriate' as

meaning sufficient in terms of quantity, quality and availability, and 'resources' as
including all financial resources (though only in the case of firms not carrying on,

Page 6 of 7

or seeking to carry on, a PRA-regulated activity), non-financial resources and
means of managing its resources; for example, capital, provisions against liabilities,
holdings of or access to cash and other liquid assets, human resources and effective
means by which to manage risks.


Threshold Condition 2C: Effective Supervision

9. COND 2.3.3G states that, in assessing the threshold condition set out in paragraph

2C of Schedule 6 to the Act, factors which the Authority will take into consideration
include, among other things, whether it is likely that the Authority will receive
adequate information from the firm to determine whether it is complying with the
requirements and standards under the regulatory system for which the Authority
is responsible and to identify and assess the impact on its statutory objectives; this
will include consideration of whether the firm is ready, willing and organised to
comply with Principle 11 (Relations with regulators) and the rules in SUP on the
provision of information to the Authority.

Threshold condition 2D: Appropriate Resources

10. COND 2.4.2G(2) states that the Authority will interpret the term 'appropriate' as

meaning sufficient in terms of quantity, quality and availability, and 'resources' as
including all financial resources (though only in the case of firms not carrying on,
or seeking to carry on, a PRA-regulated activity), non-financial resources and
means of managing its resources; for example, capital, provisions against liabilities,
holdings of or access to cash and other liquid assets, human resources and effective
means by which to manage risks.


11. COND 2.4.2G(2A) provides that, ‘non-financial resources’ of the firm include human

resources it has available.


12. COND 2.4.2G (3) states that high level systems and control requirements are in

SYSC. The Authority will consider whether the firm is ready, willing and organised
to comply with these and other applicable systems and controls requirements when
assessing if it has appropriate non-financial resources for the purpose of the
threshold conditions set out in threshold condition 2D.

Threshold condition 2E: Suitability

13. COND 2.5.2G(2) states that the Authority will also take into consideration anything

that could influence a firm's continuing ability to satisfy the threshold conditions
set out in paragraphs 2E and 3D of Schedule 6 to the Act. Examples include the
firm's position within a UK or international group, information provided by overseas
regulators about the firm, and the firm's plans to seek to vary its Part 4A permission
to carry on additional regulated activities once it has been granted that permission.

14. COND 2.5.4G(2)(c)G states that examples of the kind of general considerations to

which the Authority may have regard when assessing whether a firm will satisfy,
and continue to satisfy, threshold condition 2E include, but are not limited to,
whether the firm can demonstrate that it conducts, or will conduct, its business
with integrity and in compliance with proper standards.

15. COND 2.5.6G provides that examples of the kind of particular considerations to

which the Authority may have regard when assessing whether a firm will satisfy,
and continue to satisfy, this threshold condition include, but are not limited to,
whether the firm has been open and co-operative in all its dealings with the

Page 7 of 7

Authority and any other regulatory body (see Principle 11 (Relations with
regulators)) and is ready, willing and organised to comply with the requirements
and standards under the regulatory system (such as the detailed requirements of
SYSC and, in relation to a firm not carrying on, or seeking to carry on, a PRA-
regulated activity only, the Prudential Standards part of the Authority’s
Handbook)in addition to other legal, regulatory and professional obligations; the
relevant requirements and standards will depend on the circumstances of each
case, including the regulated activities which the firm has permission, or is seeking
permission, to carry on.

END