Final Notice
On , the Financial Conduct Authority issued a Final Notice to Equitrade Markets Ltd
FINAL NOTICE
To:
Equitrade Markets Ltd (“the Firm”)
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action against the Firm.
2.
The Authority issued to the Firm the Decision Notice which notified the Firm that
for the reasons given below and pursuant to section 55J of the Act, the Authority
had decided to cancel the Firm’s Part 4A permission.
3.
the Firm has not referred the matter to the Tribunal within 28 days of the date on
which the Decision Notice was issued to it.
4.
Accordingly, the Authority has today cancelled the Firm’s Part 4A permission.
1
DEFINITIONS
5.
The definitions below are used in this Final Notice:
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
“the Decision Notice” means the Decision Notice issued to the Firm dated 25 June
2024;
“the Firm” means Equitrade Markets Ltd;
“the Firm’s Part 4 4A permission” means the permission granted by the Authority to the
Firm pursuant to Part 4A of the Act;
“the Principles” means the Authority’s Principles for Businesses;
“the Returns” means:
•
the Complaints DISP1 Ann 1R returns for the periods ended 31 October 2021, 30
April 2022, and 31 October 2022 which the Firm was due to submit to the
Authority by 10 December 2021, 15 June 2022, and 12 December 2022
respectively;
•
the FSA001 Balance Sheet return for period ended 31 October 2021 which the
Firm was due to submit to the Authority by 10 December 2021;
•
the FSA002 Income Statement return for period ended 31 October 2021 which
the Firm was due to submit to the Authority by 10 December 2021;
•
the FSA003 Capital Adequacy return for period ended 31 October 2021 which the
Firm was due to submit to the Authority by 10 December 2021;
•
the FSA039 Client Money and Client Assets returns for the periods ended 31
October 2021, 30 April 2022, and 31 October 2022 which the Firm was due to
submit to the Authority by 10 December 2021, 15 June 2022, and 12 December
2022 respectively;
•
the FSA055 Systems and Controls Questionnaire return for period ended 31
December 2021 which the Firm was due to submit to the Authority by 24 January
2022;
•
the RIA-Complaints Complaints by Retail Investment Advisers returns for the
periods ended 31 October 2021, 30 April 2022, and 31 October 2022 which the
Firm was due to submit to the Authority by 10 December 2021, 15 June 2022,
and 12 December 2022 respectively;
•
the RMA-G Training and Competence returns for the periods ended 31 October
2021, 30 April 2022, and 31 October 2022 which the Firm was due to submit to
the Authority by 10 December 2021, 15 June 2022, and 12 December 2022
respectively;
•
the RMA-K Adviser Charges return for the period ended 30 April 2022 which the
Firm was due to submit to the Authority by 15 June 2022;
2
•
the FIN-A Annual Report and Accounts return for the period ended 30 April 2022
which the Firm was due to submit to the Authority by 24 August 2022;
•
the REP-CRIM Financial Crime Report return for the period ended 30 April 2022
which the Firm was due to submit to the Authority by 27 July 2022;
•
the REP001 and REP002 Close Links Reports returns for the period ended 30 April
2022 which the Firm was due to submit to the Authority by 31 August 2022; and
•
the REP008 Notification of Disciplinary Action relating to conduct rules staff (other
than SMF managers) return for the period ended 31 August 2022 which the Firm
was due to submit to the Authority by 1 November 2022.
“the suitability Threshold Condition” means the Threshold Condition set out in
paragraph 2E of Schedule 6 to the Act;
“the Threshold Conditions” means the threshold conditions set out in Schedule 6 to
the Act;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the Warning Notice issued by the Authority to the
Firm dated 28 May 2024
REASONS FOR ACTION
6.
On the basis of the facts and matters and failings as set out in the Warning Notice
and in the Decision Notice, it appears to the Authority that the Firm is failing to
satisfy the suitability Threshold Condition, in that the Authority is not satisfied that
the Firm is a fit and proper person having regard to all the circumstances, including
whether the Firm managed its business in such a way as to ensure that its affairs
were conducted in a sound and prudent manner.
7.
The Firm has failed to comply with the regulatory requirement to submit the
Returns and it has not been open and co-operative in all its dealings with the
Authority, in that the Firm has failed to respond to the Authority's repeated
requests for it to submit the Returns, and has thereby failed to comply with Principle
11 of the Principles and to satisfy the Authority that it is ready, willing and
organised to comply with the requirements and standards under the regulatory
system.
8.
These failures, which are significant in the context of the Firm’s suitability, lead the
Authority to conclude that the Firm has failed to manage its business in such a way
as to ensure that its affairs are conducted in a sound and prudent manner, that it
is not a fit and proper person, and that it is therefore failing to satisfy the Threshold
Conditions in relation to the regulated activities for which the Firm was granted a
Part 4A permission.
DECISION MAKER
9.
The decision which gave rise to the obligation to give this Final Notice was made
by an Authority staff member under the executive procedures.
IMPORTANT
10.
This Final Notice is given to the Firm in accordance with section 390(1) of the Act.
3
11.
The Authority must publish such information about the matter to which this Final
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 the Firm or prejudicial to the interest of consumers.
12.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.
13.
For more information concerning this matter generally, please contact M Alexander
Bajko at the Authority (direct line: 020 7066 1838).
Angela Curtis
Enforcement and Market Oversight Division
To:
Equitrade Markets Ltd (“the Firm”)
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action against the Firm.
2.
The Authority issued to the Firm the Decision Notice which notified the Firm that
for the reasons given below and pursuant to section 55J of the Act, the Authority
had decided to cancel the Firm’s Part 4A permission.
3.
the Firm has not referred the matter to the Tribunal within 28 days of the date on
which the Decision Notice was issued to it.
4.
Accordingly, the Authority has today cancelled the Firm’s Part 4A permission.
1
DEFINITIONS
5.
The definitions below are used in this Final Notice:
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
“the Decision Notice” means the Decision Notice issued to the Firm dated 25 June
2024;
“the Firm” means Equitrade Markets Ltd;
“the Firm’s Part 4 4A permission” means the permission granted by the Authority to the
Firm pursuant to Part 4A of the Act;
“the Principles” means the Authority’s Principles for Businesses;
“the Returns” means:
•
the Complaints DISP1 Ann 1R returns for the periods ended 31 October 2021, 30
April 2022, and 31 October 2022 which the Firm was due to submit to the
Authority by 10 December 2021, 15 June 2022, and 12 December 2022
respectively;
•
the FSA001 Balance Sheet return for period ended 31 October 2021 which the
Firm was due to submit to the Authority by 10 December 2021;
•
the FSA002 Income Statement return for period ended 31 October 2021 which
the Firm was due to submit to the Authority by 10 December 2021;
•
the FSA003 Capital Adequacy return for period ended 31 October 2021 which the
Firm was due to submit to the Authority by 10 December 2021;
•
the FSA039 Client Money and Client Assets returns for the periods ended 31
October 2021, 30 April 2022, and 31 October 2022 which the Firm was due to
submit to the Authority by 10 December 2021, 15 June 2022, and 12 December
2022 respectively;
•
the FSA055 Systems and Controls Questionnaire return for period ended 31
December 2021 which the Firm was due to submit to the Authority by 24 January
2022;
•
the RIA-Complaints Complaints by Retail Investment Advisers returns for the
periods ended 31 October 2021, 30 April 2022, and 31 October 2022 which the
Firm was due to submit to the Authority by 10 December 2021, 15 June 2022,
and 12 December 2022 respectively;
•
the RMA-G Training and Competence returns for the periods ended 31 October
2021, 30 April 2022, and 31 October 2022 which the Firm was due to submit to
the Authority by 10 December 2021, 15 June 2022, and 12 December 2022
respectively;
•
the RMA-K Adviser Charges return for the period ended 30 April 2022 which the
Firm was due to submit to the Authority by 15 June 2022;
2
•
the FIN-A Annual Report and Accounts return for the period ended 30 April 2022
which the Firm was due to submit to the Authority by 24 August 2022;
•
the REP-CRIM Financial Crime Report return for the period ended 30 April 2022
which the Firm was due to submit to the Authority by 27 July 2022;
•
the REP001 and REP002 Close Links Reports returns for the period ended 30 April
2022 which the Firm was due to submit to the Authority by 31 August 2022; and
•
the REP008 Notification of Disciplinary Action relating to conduct rules staff (other
than SMF managers) return for the period ended 31 August 2022 which the Firm
was due to submit to the Authority by 1 November 2022.
“the suitability Threshold Condition” means the Threshold Condition set out in
paragraph 2E of Schedule 6 to the Act;
“the Threshold Conditions” means the threshold conditions set out in Schedule 6 to
the Act;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the Warning Notice issued by the Authority to the
Firm dated 28 May 2024
REASONS FOR ACTION
6.
On the basis of the facts and matters and failings as set out in the Warning Notice
and in the Decision Notice, it appears to the Authority that the Firm is failing to
satisfy the suitability Threshold Condition, in that the Authority is not satisfied that
the Firm is a fit and proper person having regard to all the circumstances, including
whether the Firm managed its business in such a way as to ensure that its affairs
were conducted in a sound and prudent manner.
7.
The Firm has failed to comply with the regulatory requirement to submit the
Returns and it has not been open and co-operative in all its dealings with the
Authority, in that the Firm has failed to respond to the Authority's repeated
requests for it to submit the Returns, and has thereby failed to comply with Principle
11 of the Principles and to satisfy the Authority that it is ready, willing and
organised to comply with the requirements and standards under the regulatory
system.
8.
These failures, which are significant in the context of the Firm’s suitability, lead the
Authority to conclude that the Firm has failed to manage its business in such a way
as to ensure that its affairs are conducted in a sound and prudent manner, that it
is not a fit and proper person, and that it is therefore failing to satisfy the Threshold
Conditions in relation to the regulated activities for which the Firm was granted a
Part 4A permission.
DECISION MAKER
9.
The decision which gave rise to the obligation to give this Final Notice was made
by an Authority staff member under the executive procedures.
IMPORTANT
10.
This Final Notice is given to the Firm in accordance with section 390(1) of the Act.
3
11.
The Authority must publish such information about the matter to which this Final
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 the Firm or prejudicial to the interest of consumers.
12.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.
13.
For more information concerning this matter generally, please contact M Alexander
Bajko at the Authority (direct line: 020 7066 1838).
Angela Curtis
Enforcement and Market Oversight Division