1

NOTICE OF DECISION

ACTION

1.
For the reasons given below, the Authority has decided to cancel DJL’s Part 4A
permission. The cancellation takes effect on the date of this Notice of Decision.

2.
The effect of the cancellation is that DJL no longer has permission to carry on any
regulated activities.

DEFINITIONS

3.
The definitions below are used in this Notice of Decision (and in the Annex):

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

“the Authority” means the Financial Conduct Authority;

“DJL” means Donnell Jewellers Limited;

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


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“Directory Persons Attestation” means the report which an SMCR firm (as defined
in the Handbook) is required to submit to the Authority in accordance under SUP
16.26;

“DISP” means the Authority’s Dispute Resolution: Complaint’s sourcebook, part of
the Handbook;

“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;

“FEES” means the Authority’s FEES Manual, part of the Handbook;

“FSCS” means the Financial Services Compensation Scheme;

“the Further Notice” means the further notice issued by the Authority to DJL dated
25 August 2023;

“the general levy” means the levy a firm must pay to the Authority towards the
costs of operating the compulsory jurisdiction of the Financial Ombudsman Service;

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

“the IML levy” means the Illegal Money Lending levy;

“the Notice” means the notice issued by the Authority to DJL dated 23 June 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 CCR001, CCR002, CCR003 and the Complaints returns in
relation to the periods from 1 October 2020 to 30 September 2022 which DJL was
due to submit to the Authority by 11 November 2021 and 11 November 2022
respectively;

“SFGB Levy” means the Single Financial Guidance Body Levy;

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


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

FACTS AND MATTERS

4.
DJL was authorised by the Authority on 6 September 2016 and given a Part 4A
permission to conduct the following regulated activities:

i.
agreeing to carry on a regulated activity;
ii.
entering into regulated credit agreement as lender (excluding high-cost short-
term credit, bill of sale agreement, and home collected credit agreement); and 
iii.
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). 


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5.
DJL has failed to pay periodic fees and levies owed to the Authority as required under
the Handbook under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R,
7A.3.1R and 13.2.1R. In particular, DJL has failed to pay:

a.
an invoice dated 26 January 2022 for periodic regulatory fees and levies of
£825.50 which had been due for payment by 26 April 2022; and

b.
an invoice dated 6 September 2022 for periodic regulatory fees and levies of
£1,095.03 which had been due for payment by 6 October 2022.

6.
In addition, under SUP 16.3.13R, 16.12.3R, SUP 16.12.4R and SUP 16.12.29CR and
DISP 1.10.1R, DJL is required to submit the Returns to the Authority by the relevant
due date. However, DJL has failed to submit the Returns to the Authority.
Furthermore, under SUP 16.10.4R, 16.10.4AR and 16.10.14AAR, DJL is required to
submit the FDA to the Authority by the relevant due date. However, DJL has failed
to submit the FDA to the Authority. Lastly, under SUP 16.26.18R to 16.26.20R, DJL
is required to submit the Directory Persons Attestation to the Authority within the
relevant period. However, DJL has failed to submit the Directory Persons Attestation
to the Authority.

7.
The Authority therefore considers that DJL 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, the FDA and the Directory Persons Attestation. There are no
other matters that suggest DJL is carrying on regulated activities.

8.
On 23 June 2023, the Authority gave DJL the Notice which stated that:

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

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

9.
DJL failed to respond to the Notice.

10.
As a result of the matters specified above, on 25 August 2023, the Authority gave
DJL the Further Notice which stated that:

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

b)
the Authority proposes to cancel DJL’s Part 4A permission on 21 September
2023 unless DJL takes the steps specified in the directions to the Further
Notice.

11.
DJL 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 DJL is carrying on no
regulated activity to which its Part 4A permission relates. The Authority has therefore
decided to cancel DJL’s Part 4A permission. The cancellation of DJL’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 DJL 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 DJL is aggrieved by the decision to cancel its Part 4A permission as set out in this
Notice of Decision, DJL may make an application for an annulment of the Authority’s
decision under paragraph 4 of Schedule 6A to the Act.

16.
DJL must submit a completed application for an annulment of the Authority’s decision
to the Authority by 20 September 2024 and in the manner specified by the Authority.

The Tribunal

17.
DJL 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

19.
For more information concerning this matter generally, DJL should contact Sheena
Baldev (direct line: 020 7066 6760).



Jeremy Parkinson
Enforcement and Market Oversight 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—

(a)
to pay any periodic fee or levy as is required by the Handbook, or

(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.
FEES 4.2.1R requires that:

“A person shown in column (1) of the table in FEES 4.2.11 R as the relevant
fee payer must pay each periodic fee applicable to it, calculated in
accordance with the provisions referred to in column (2) of the applicable
table, as adjusted by any relevant provision in this chapter:

(1)
in full and without deduction (unless permitted or required by a
provision in FEES); and

(2)
on or before the date given in column (3) of that table, unless FEES
4.2.10 R applies.”

7.
FEES 4.3.1R states that:

“The periodic fee payable by a firm (except an AIFM qualifier, ICVC or a
UCITS qualifier) is:


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(1)
each periodic fee applicable to it calculated in accordance with FEES
4.3.3 R, using information obtained in accordance with FEES 4.4;
plus

(1A)
any periodic fee applicable to it calculated in accordance with FEES
4.3.3A R using information relating to its UK business obtained in
accordance with FEES 4.4 (or by other means in the case of the Bank
of England); less

(2)
any deductions from the periodic fee specified in Part 2 of FEES 4
Annex 2AR or Part 7 of FEES 4 Annex 11R.”

10.
FEES 5.7.1R requires that:


“A firm must pay annually to the [Authority] the general levy on or before
the later of 1 April and 30 calendar days after the date when the invoice is
issued by the [Authority].”

11.
FEES 6.7.1R requires that:

“A participant firm that is not within FEES 6.7.-1R, must pay its share of any
levy made by the FSCS in one payment”.

12.
FEES 6.7.3R states that:

“A participant firm's share of a levy to which FEES 6.7.1R applies is due on,
and payable within 30 days of, the date when the invoice is issued.”

13.
FEES 7A.3.1R requires that:

“A firm must pay the SFGB money advice levy or SFGB debt advice levy
applicable to it:

(1)
in full and without deduction (unless permitted or required by a
provision in FEES); and

(2)
by 1 August or, if later, within 30 days of the date of the invoice in
the fee year to which that sum relates.

14.
FEES 13.2.1R requires that:

“A firm must pay each IML levy applicable to it:

(1)
in full and without deduction by 1 August (or, if later, within 30 days
of the date of the invoice) in the financial year to which the sum
relates; and

(2)
in accordance with the rules in this chapter.

15.
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.”



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16.
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.”

17.
The specific reporting requirements for DJL are set out in SUP 16.12.3R, SUP
16.12.4R and SUP 16.12.29CR and DISP 1.10.1R which stipulate the type, frequency
and due date of the regulatory report which DJL is required to submit, according to
the regulated activities which DJL has permission to conduct:


RAG Number
Return(s)
applicable

(Relevant rule)

Frequency of
return(s) to be
submitted

(Relevant rule)

Due date of
return(s) to be
submitted

(Relevant rule)

RAG 12
(Credit-related
regulated
activity)

CCR001;
CCR002;
CCR003;
(SUP 16.12.29CR)

30 business days
(SUP 16.12.29CR)

Consumer Credit
full
permission

firms
(DISP

CCR-Complaints 
(DISP 1.10.1R) 

(DISP 1.10.1R) 

30 business days 
(DISP 1.10.5R) 

18.
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.”

19.
SUP 16.10.4AR(1) specifies that:

“A firm must submit any corrected firm details under SUP 16.10.14R(3)
using the appropriate online systems accessible through the [Authority’s]
website.”

20.
SUP 16.10.14AAR, which applies where, in complying with SUP 16.10.14R(1), a firm
does not need to submit corrected firm details under SUP 16.10.14R(3), specifically
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 16.10.14R(1) remain accurate, using the
appropriate online systems accessible through the [Authority’s] website.”

21.
SUP 16.26.18R specifies that:

“(1) Paragraph (2) applies where an SMCR has not submitted any reports
to the [Authority] in respect of a Directory person in accordance with the
provisions of this section within the relevant period […].

(2) An SMCR firm must submit a report to the [Authority] confirming that
the information previously reported by the firm in respect of its Directory
persons remains accurate and up-to-date.

(3) The confirmation to be submitted to the [Authority] under paragraph (2)
must be submitted no later than the first business day following the end of
the relevant period”.

22.
SUP 16.26.19R specifies that an SMCR firm may submit a confirmation of accuracy
at any time.

23.
SUP 16.26.20R specifies that:

“(1) For the purposes of SUP 16.26.18R, the “relevant period” is the period
which:


(a) starts on the day on which the SMCR firm last:

(i) submitted a report to the [Authority] in respect of any of
its Directory persons; or

(ii) submitted a confirmation in accordance with SUP
16.26.18R;

(iii) submitted a confirmation in accordance with SUP
16.26.19R; and







(b) subject to (2), ends 364 days after the day specified in (a).

(2) If the relevant period includes the 29 February of a given year, the period
ends 365 days after the day specified in paragraph (1)(a).”

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

24.
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.

25.
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.

26.
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.

27.
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:

(a)
pay a periodic fee or levy under the Handbook; or

(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.

28.
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.

29.
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.