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FINAL NOTICE

Convert my Conservatory
Unit 115-119
Fort Dunlop
Fort Parkway
Birmingham
West Midlands
B24 9FE
UNITED KINGDOM

ACTION

1. By an application dated 18 November 2020 (“the Application”), Convert my

Conservatory (“CMC” 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;

b.
Credit Broking

c.
Entering into regulated credit agreement as Lender (Excluding high-cost
short-term credit, bill of sale agreement, and home collected credit
agreement)

d.
Exercising/having right to exercise lender's rights and duties under a
regulated credit agreement (excluding high-cost short-term credit, bill of
sale agreement, and home collected credit agreement)

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

SUMMARY OF REASONS

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

Application and that CMC was entitled to make representations to the Authority
about that proposed action.

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4. As no representations have been received by the Authority from CMC 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 Decision Notice.

5. By its Decision notice the Authority gave CMC notice that it had decided to take

the action described above.

6. CMC had 28 days from the date the Decision notice was given to refer the matter

to the Upper Tribunal (formerly known as the Financial Services and Markets
Tribunal). No referral was made to the Upper Tribunal within this period of time
or to date.

7. Under section 390 (1) of the Act, the Authority, having decided to refuse the

Application and there having been no reference of that decision to the Tribunal,
must give CMC Final Notice of its refusal.

8. CMC has failed to respond to requests for the provision of information considered

by the Authority to be necessary to allow the Application to be determined. The
last request included a statement to the effect that CMC must contact the
Authority within 10 business days, or the Authority would issue CMC with a
Warning Notice. No response was received.

9. 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 CMC satisfies, and will continue to satisfy, the threshold conditions.

10. 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 CMC would fail to do so if the
Application were to be granted.

11. The failure to provide the information raises concerns as to whether CMC:

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

condition 2C;

b. has appropriate human resources, given CMC’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.

DEFINITIONS

12. 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;

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“the Decision Notice” means the decision notice dated 9 September 2021 given to
the applicant by the Authority.

“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).

FACTS AND MATTERS

13. The Application was received by the Authority on 18/11/2020.

14. Further information was requested from CMC under section 55U(5) of the Act.

15. The Authority requested the following information in support of the Application on

a. Clarification of the applicant’s name

b. Clarification of the applicants projected income

c. Whether the applicant is a Domestic Premises Supplier (DPS)

d. Clarification of permissions applied for

16. CMC failed to provide all of the outstanding information requested by the deadline

for response, 21/04/21. A response was received regards only the permissions
only.

17. CMC was contacted via telephone and email on 21/04/21 by the Authority

requesting the points listed 11a – 11c along with an explanation regards overdue
accounts for the applicant at Companies House. A revised deadline of 27/04/21
was issued.

18. On 05/05/21 a telephone conversation took place between Victoria Gill of the

Authority and Michael of CMC. Michael advised he would look at the outstanding
points and response as soon as possible. The authority advised that if a full
response was not provided by close of business 17/05/21, the application may be
refused as it can not progress without the required information. No response was
received

19. On 03/06/21, the Authority sent a letter to CMC by way of email and 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 CMC with a Warning Notice
proposing to refuse the Application. CMC failed to provide the outstanding
information by the stated deadline.

IMPACT ON THRESHOLD CONDITIONS

20. CMC has failed to respond to four 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 CMC 10 business days to respond, and

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included a statement to the effect that CMC must contact the Authority, or the
Authority would issue CMC with a Warning Notice.

21. 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 CMC satisfies, and will continue to satisfy, the threshold conditions.

22. 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 CMC would fail to do so if the
Application were to be granted.

23. The failure to provide the information means that the Authority cannot ensure

that CMC:

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

condition 2C;

b. has appropriate human resources, given CMC’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.

IMPORTANT NOTICES

24. This Final Notice is given under section 390(1) of the Act.

25. 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 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 you or prejudicial to the interests of consumers or
detrimental to the stability of the UK financial system.

26. The Authority intends to publish such information about the matter to which this

Final Notice relates as it considers appropriate

Authority contacts

For more information concerning this matter generally, contact Alexander
MacDermott, Credit and Lending at the Authority (direct line: 020 7066 0264 /
email: alexander.macdermott@fca.org.uk).

Alexander MacDermott
Executive Decision Maker on behalf of the FCA

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ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL 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.

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Threshold Condition 2C: Effective Supervision

8. 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

9. 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.


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

human resources it has available.


11. 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

12. 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.

13. 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.

14. 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
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

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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.