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NOTICE OF DECISION

ACTION

1.
The Authority has decided to cancel the Firm’s Part 4A permission.

2.
The Authority has taken this action because, based on the facts and matters
set out below, it considers that the Firm is carrying on no regulated activity to
which the Firm’s Part 4A permission relates.

3.
The cancellation takes effect on 16 January 2024. The effect of the
cancellation is that the Firm no longer has permission to carry on any regulated
activities.

DEFINITIONS

4.
The definitions below are used in this Notice of Decision (and in the Annex):

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


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“the Authority” means the Financial Conduct Authority;

“EG” means the Enforcement Guide;

“FDA” means the Firm Details Attestation which Authority-authorised firms
are required to submit to the Authority under SUP 16.10;

“the Firm” means DHI International UK Limited;

“the Firm’s Part 4A permission” means the Part 4A permission granted by the
Authority to the Firm;

“the Further Notice” means the further notice issued by the Authority to the
Firm dated 13 December 2023;

“the Handbook” means the Authority’s Handbook of rules and guidance;

“the Notice” means the notice issued by the Authority to the Firm dated 14
November 2023;

“Part 4A permission” means permission to conduct regulated activities,
granted by the Authority under Part 4A of the Act;

“RAG” means regulated activity group as referred to in SUP;


“the Returns” means the CCR007 for the periods between 01 January 2019
and 31 December 2022 which the Firm was due to submit to the Authority on
various dates between 12 February 2020 and 13 February 2023;

“SUP” means the Supervision Manual, part of the Handbook; and


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

FACTS AND MATTERS

5.
The Firm was authorised by the Authority on 14 July 2015 and has a Part 4A
permission to conduct the following regulated activities in relation to consumer
credit business:

i.agreeing to carry on a regulated activity; and
ii.credit broking



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6.
The Firm is required to submit the Returns to the Authority by the relevant due
date in accordance with the following rules contained in SUP 16.3.11R, SUP
16.3.13R, SUP 16.12.3R, SUP 16.12.4R and SUP 16.12.29CR. However, the
Firm has failed to submit the Returns to the Authority. The Authority therefore
considers that the Firm has failed to provide information to the Authority as is
required by the Handbook, namely the information it is required to provide in
the Returns.

7.
Under SUP 16.10.4R, 16.10.4AR and 16.10.4AAR, the Firm is required to
submit the FDA to the Authority by the relevant due date. However, the Firm
has failed to submit the FDA to the Authority.


8.
On 14 November 2023, the Authority gave the Firm the Notice which stated
that:

(a) it appears to the Authority that the Firm is carrying on no regulated activity
to which its Part 4A permission relates; and

(b) the Authority may take action to cancel the Firm’s Part 4A permission
unless it responds to the Notice in the manner specified in the directions
to the Notice.

9.
The Firm failed to respond in the manner specified in the directions to the
Notice.

10. As a result of the matters specified above, on 13 December 2023, the Authority
gave the Firm the Further Notice which stated that:

a) the Authority considered that the Firm is carrying on no regulated activity
to which its Part 4A permission relates; and

b) the Authority proposes to cancel the Firm’s Part 4A permission on 16
January 2024 unless the Firm takes the steps specified in the directions
to the Further Notice.

11. The Firm failed to take the steps specified in the Further Notice.

CANCELLATION OF PART 4A PERMISSION


12. From the facts and matters described above, and having regard to paragraph
1(3) of Schedule 6A to the Act, the Authority considers that the Firm is carrying
on no regulated activity to which its Part 4A permission relates. The Authority

has therefore decided to cancel the Firm’s Part 4A permission. The cancellation
of the Firm’s Part 4A permission takes effect on the date of this Notice of
Decision.

13. The statutory and regulatory provisions relevant to this Notice of Decision are
set out in the Annexes.

PROCEDURAL MATTERS



14. This Notice of Decision is given to the Firm under paragraph 3 of Schedule 6A
to the Act (variation or cancellation of Part 4A permission on initiative of FCA:
additional power).


The following paragraphs are important.

Annulment of the Authority’s decision

15. If the Firm is aggrieved by the decision to cancel its Part 4A permission as set
out in this Notice of Decision, the Firm may make an application for an
annulment of the Authority’s decision under paragraph 4 of Schedule 6A to the
Act.

16. The Firm must submit a completed application for an annulment of the
Authority’s decision to the Authority by 15 January 2025 and in the manner
specified by the Authority.


The Tribunal

17. The Firm does not have a right to refer the decision to give this Notice of
Decision to the Tribunal.




Publicity

18. The Authority intends to publish such information about the matter to which
this Notice of Decision relates as the Authority considers appropriate. The
information may be published in such manner as the Authority considers
appropriate.

Authority Contact


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19. For more information concerning this matter generally, the Firm should contact
Ya Ngoneh Sarr (direct line: 020 7066 7944).





Robert Westwood

Manager Event Supervision
Supervision- Retail & Authorisations Division




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ANNEX ON CANCELLATION OF PART 4A PERMISSION ON INITIATIVE OF

FCA: ADDITIONAL POWER

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational objectives established 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 paragraphs 1(1) and (2) of Schedule 6A to the
Act to cancel an Authority-authorised person’s Part 4A permission, if it appears
to the Authority that the Authority-authorised person is carrying on no
regulated activity to which the permission relates.

3.
Paragraph 1(3) of Schedule 6A of the Act provides that the circumstances in
which the Authority may form the view that an Authority-authorised person is
carrying on no regulated activity include (but are not limited to) circumstances
where the person fails—


(b) to provide such information to the Authority as is required by the
Handbook.

4.
The Authority must exercise its power to cancel an Authority-authorised
person’s Part 4A permission using its additional own initiative power in
accordance with the procedure set out in paragraph 2 of Schedule 6A to the
Act.

RELEVANT HANDBOOK PROVISIONS

5.
In exercising its power to cancel an Authority-authorised person’s Part 4A
permission, the Authority must have regard to the regulatory requirements and
guidance published in the Handbook and in regulatory guides, such as EG. The
main considerations relevant to the action stated in this Notice of Decision are
set out below.

Relevant Rules


6. SUP 16.3.11R requires that:

“A firm must submit reports required under this chapter to the [Authority]
containing all the information required.”

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7. SUP 16.3.13R(1) requires that:

“A firm must submit a report required by this chapter in the frequency, and so
as to be received by the [Authority] no later than the due date, specified for
that report.”

8. SUP 16.3.13R(4) states that:

“If the due date for submission of a report required by this chapter is a set
period of time after the end of a half-year, a quarter, or a month, the dates will
be determined by (a) or (b) below except where otherwise indicated:

(a) the firm's accounting reference date;

(b) monthly, 3 monthly or 6 months after the firm's accounting reference date,
as the case may be.”

9. The Firm falls within RAG 12. A firm’s RAG dictates specific reporting
requirements for that firm, based on regulated activities which the firm has
permission to carry on and arise from the rules contained in SUP, which stipulates
the data item or regulatory report, frequency and the date by which the relevant
data item or regulatory report is required to be submitted. The reporting
requirements relevant to the Firm are set out in the rules specified in paragraph
6 of this Notice of Decision.

10.
SUP 16.10.4R specifies that:

“(1) Within 60 business days of its accounting reference date, a firm
must check the accuracy of its firm details through the relevant section
of the [Authority] website.

[…]

(3) If any of the details are incorrect, the firm must submit the corrected
firm details to the [Authority] using the appropriate form set out in SUP
15 Ann 3 and in accordance with SUP 16.10.4AR.”

11.
SUP 16.10.4AR(1) specifies that:

“A firm must submit any corrected firm details under SUP 16.10.4R(3)
using
the appropriate online systems accessible through the
[Authority’s] website.”


12.
SUP 16.10.4AAR, which applies where, in complying with SUP 16.10.4R(1), a
firm does not need to submit corrected firm details under SUP 16.10.4R(3),
specifics that:

“(2) Within 60 business days of its accounting reference date, a firm
must submit a report to the [Authority] confirming that the firm details
which it has checked under SUP 16.10.4R(1) remain accurate, using the
appropriate online systems accessible through the [Authority’s]
website.”


Guidance concerning the use of the Authority’s additional power to
cancel an authorised firm’s Part 4A permission on its own initiative

13.
Guidance on the use of the Authority’s power to cancel an Authority-
authorised person’s Part 4A permissions on its own initiative under Schedule 6A
to the Act is set out in SUP and EG.

14.
EG 8.5.2A states that the Authority may cancel the Part 4A permission of a
firm that is an Authority-authorised person, under Schedule 6A of the Act, if:

(1) it appears to the Authority that the firm is carrying on no regulated
activity to which the permission relates; and

(2) the firm has failed to respond as directed by the Authority to notices
served by the Authority to the firm under paragraph 2 of Schedule 6A.

15.
EG 8.5.2A also states that Schedule 6A specifies that the Authority may form
the view that a firm is carrying on no such regulated activity on the basis of its
failure to pay a periodic fee or levy or provide information to the Authority, in
each case as required by the Handbook.

16.
SUP sets out further guidance on the Authority’s power under Schedule 6A of
the Act. In particular, SUP 7.2.2AG states that the Authority may decide to cancel
an Authority-authorised person’s Part 4A permission using its powers under
Schedule 6A of the Act:

(1) if that person appears to the Authority not to be carrying on any
regulated activity to which the permission relates, including, without
restriction, if the person has failed to:


(b) provide the Authority with information required under the Handbook;
and

(2) if that person, when served by the Authority with two notices under
paragraph 2 of Schedule 6A of the Act, has not:

(a) responded in the manner directed, in those notices or otherwise,
by the Authority; nor

(b) taken other steps as may also be directed by the Authority;

the second of which notices will specify the effective date of the
proposed cancellation.


17.
SUP 7.2.2DG states that:

(1) the Authority’s additional own-initiative variation power under
Schedule 6A to the Act (which includes the power to cancel the Part 4A
permission of an Authority-authorised firm under Schedule 6A of the
Act and references to “additional own-initiative variation power in the
remainder of this Notice of Decision should be read as such) has, unlike
the Authority’s own-initiative variation power under section 55J of the
Act, a single basis: that it appears to the Authority that the relevant
Authority-authorised person is not carrying on any regulated activity
to which its Part 4A permission relates.

(2) if the Authority uses its additional own-initiative variation power, it is
therefore more likely to cancel the relevant firm’s Part 4A permission,
rather than merely varying it by removing or amending the description
of one or more such activities or by imposing one or more limitations.

(3) the Authority will, however, consider all relevant facts and
circumstances, including, without restriction:

(a) the relevant firm’s responses, if any, to the notices given by the
Authority under paragraph 2 of Schedule 6A; and

(b) if applicable, the factors described in SUP 6.4.22G, including
whether there are any matters relating to the firm requiring
investigation,

before deciding whether to use its additional own-initiative variation power and
whether to use it to cancel or vary.


18.
SUP 7.2.7G(1) states that a firm has no right of referral to the Tribunal in
respect of the Authority exercising its additional own-initiative variation power,
under Schedule 6A to the Act, on the Authority-authorised firm’s Part 4A
permission.