FINAL NOTICE

TAKE NOTICE: The Financial Services Authority of 25 The North Colonnade, Canary
Wharf, London E14 5HS (the “FSA”) gives you final notice about an order prohibiting
you, David Carter, from performing any function in relation to any regulated activity
carried on by any authorised person, exempt person or exempt professional firm

1.
THE ORDER

1.1.
The FSA gave you a Decision Notice on 20 January 2011 (the “Decision Notice”)
which notified you that, for the reasons listed below and pursuant to section 56 of the
Financial Services and Markets Act 2000 (the “Act”), the FSA had decided to make
an order prohibiting you from performing any function in relation to any regulated
activity carried on by any authorised person, exempt person or exempt professional
firm (the “Prohibition Order”).

1.2.
You have not referred the matter to the Upper Tribunal (Tax and Chancery Division)
within 28 days of the date on which the Decision Notice was given to you.

1.3.
Accordingly, for the reasons set out below, the FSA hereby makes an order pursuant
to section 56 of the Act prohibiting you from performing any function in relation to
any regulated activity carried on by any authorised person, exempt person or exempt
professional firm. The Prohibition Order takes effect from 22 February 2011.
2.
REASONS FOR THE ORDER

Introduction

2.1.
The FSA has concluded, on the basis of the facts and matters and conclusions
described in its Warning Notice dated 4 November 2010 (an extract from which is
attached to and forms part of this Final Notice), and in the Decision Notice, that you
are not a fit and proper person to perform any functions as your conduct demonstrates
a lack of honesty and integrity. Specifically, on 10 and 13 March 2009, you were
convicted of six counts of conspiracy to defraud. On 22 May 2009 you were
sentenced to a total of three years imprisonment.

Relevant Statutory Provisions

2.2.
The FSA’s statutory objectives are set out in section 2(2) of the Act and include the
protection of consumers, maintaining market confidence and the reduction of financial
crime.

2.3.
The FSA’s power to make a prohibition order is set out in section 56 of the Act and
the procedure to be followed is set out in section 58 of the Act.

Relevant Guidance

The Enforcement Guide (“EG”)

2.4.
The FSA’s policy in relation to exercising its power to issue a prohibition order is set
out in EG.

2.5.
EG 9.1 explains the purpose of prohibition orders in relation to the FSA’s regulatory
objectives.

2.6.
EG 9.3 to 9.5 sets out the FSA’s policy on making prohibition orders. In particular:

(a)
EG 9.3 states that the FSA will consider all relevant circumstances, including
whether enforcement action has been taken against the individual by other
enforcement agencies, in deciding whether to make a prohibition order;

(b)
EG 9.4 states that the FSA has power to make a range of prohibition orders:
they may be unlimited or they may be limited to specific functions in relation
to specific regulated activities, depending on the reasons why the individual is
not fit and proper and the severity of risk he poses to consumers or the market
generally; and


(c)
EG 9.5 states that the scope of a prohibition order will depend on the reasons
why the individual is not fit and proper and the severity of risk he poses to
consumers or the market generally.

2.7.
EG 9.17 sets out that where the FSA is considering whether to make a prohibition
order against someone who is not an approved person, the FSA will consider the
severity of the risk posed by the individual and may prohibit him where it considers
that it is necessary to achieve the FSA’s regulatory objectives.

2.8.
EG 9.18 states that, when determining the fitness and propriety of such an individual,
the FSA will consider a number of factors, including those set out in EG 9.9. These
factors include: the criteria for assessing the fitness and propriety of approved persons
set out in the Fit and Proper Test for Approved Persons (“FIT”) section of the FSA
Handbook, the relevance and materiality of any matters indicating unfitness, and the
severity of the risk which the individual poses to consumers and to confidence in the
financial system.

Fit and Proper Test for Approved Persons

2.9.
The FSA has issued guidance on the fitness and propriety of individuals in FIT.

2.10. FIT 1.1.2G states that the purpose of FIT is to set out and describe the criteria that the

FSA will consider when assessing the fitness and propriety of a candidate for a

controlled function. The criteria are also relevant in assessing the continuing fitness

and propriety of approved persons.

2.11. FIT 1.3.1G(1) states that the most important consideration includes a person’s
honesty, integrity and reputation.

2.12. FIT 2.1.3G(1) states that the FSA will have regard to whether a person has been
convicted of any criminal offence, and goes on to say that particular consideration
will be given to offences of dishonesty, fraud, financial crime or other offences under
legislation relating to money laundering.

3.
DECISION MAKER

3.1.
The decision that gave rise to the obligation to give this Final Notice was taken by the
Regulatory Decisions Committee.

4.
IMPORTANT

4.1.
This Final Notice is sent to you in accordance with section 390(1) of the Act.

Publicity

4.2.
Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of information
about the matter to which this Final Notice relates. Under those provisions, the FSA
must publish such information about the matter to which this Final Notice relates as
the FSA considers appropriate. The information may be published in such manner as
the FSA considers appropriate. However, the FSA may not publish information if

such publication would, in the opinion of the FSA, be unfair to you or prejudicial to
the interests of consumers.

4.3.
The FSA intends to publish such information about the matter to which this Final

Notice relates as it considers appropriate.

FSA contact

4.4.
For more information concerning this matter generally, you should contact Wilma
Amarteifio (direct line: 020 7066 7452 / fax: 020 7066 7453) of the Enforcement and
Financial Crime Division at the FSA.





…………………………………………………

John Kirby
FSA Enforcement and Financial Crime Division


Attachment: Extract from Warning Notice dated 4 November 2010

























EXTRACT FROM THE WARNING NOTICE DATED 4 NOVEMBER 2010 ISSUED
BY THE FSA TO DAVID CARTER


“2.
REASONS FOR THE PROPOSED ACTION

Facts and matters relied on

2.14. You were initially granted authorisation and individual approval by the FSA as a sole
trader trading as The Network Financial Services on 1 December 2001. You were
approved by the FSA to perform the following controlled functions:


1) CF7 (Sole trader), from 1 December 2001 until 31 January 2007;

2) CF8 (Apportionment and Oversight), from 18 August 2004 until 1 June 2009;

3) CF10 (Compliance and Oversight), from 1 December 2001 until 1 June 2009;

4) CF11 (Money Laundering Reporting) from 1 December 2001 until 1 June 2009;

5) CF21 (Investment Adviser) from 1 December 2001 until 31 October 2007;

6) CF24 (Pension Transfer Specialist) from 1 December 2001 until 6 July 2005;

7) CF30 (Customer) from 1 November 2007 until 1 June 2009; and

8) Responsible for Insurance Mediation from 17 February 2005 until 1 June 2009.

2.15. You, trading as The Network Financial Services, were permitted to conduct
designated investment business from 1 December 2001 until 1 June 2009 and
regulated mortgage mediation business from 31 October 2004 until 1 June 2009.

2.16. On 10 and 13 March 2009, you were convicted upon indictment of six counts of
conspiracy to defraud at Sheffield Crown Court.

2.17. You committed these offences while you were an approved person. You submitted
false mortgage applications which included life assurance policy applications to
lenders.

2.17. The Court has discretion to impose a custodial sentence for those offences. Section
79(2)(a) of the Powers of Criminal Court (Sentencing) Act 2000 states that the Court
shall not pass a custodial sentence unless it is of the opinion that the offence is so
serious that only such a sentence can be justified for the offence. On 22 May 2009,
you were sentenced to three years imprisonment for each of these offences, to run
concurrently.

Conclusions

2.18. The facts and matters described above lead the FSA, having regard to its regulatory
objectives which include the protection of consumers, maintaining market confidence
and the reduction of financial crime, to the following conclusions:


(1)
you have acted dishonestly and without integrity whilst being an approved
person by submitting false mortgage and accompanying life assurance policy
applications to lenders;

(2)
you have been convicted of serious criminal offences: six counts of conspiracy
to defraud;

(3)
the convictions, and the conduct which gave rise to them, go directly to
impugn your honesty, integrity and reputation and therefore demonstrate that
you are not a fit and proper person to perform any function in relation to any
regulated activity carried on by any authorised person, exempt person or
exempt professional firm;

(4)
you present a risk to consumers, to the financial system, as well as to the
FSA’s statutory objective of the reduction of financial crime, as you have
failed to demonstrate that you conducted your business in compliance with
proper standards; and

(5)
the severity of the risk that you pose to consumers and to confidence in the
market generally is such that it is necessary in order to achieve its regulatory
objectives for the FSA to make a prohibition order against you in the terms set
out in this notice.”

END OF EXTRACT