NOTICE OF DECISION TO CANCEL

To:

Euro Commercial Trading Limited (formerly Financial
Guarantee Limited)

Address:

3-5 Earls Avenue
Folkestone
CT20 2HR

FRN:

583090


ACTION

1.
For the reasons set out below and pursuant to Regulations 34(7)(a) and 34(3)(c)
of the Money Laundering Regulations 2007 (the “MLR”), the Authority (the body
corporate previously known as the Financial Services Authority and renamed on 1
April 2013 as the Financial Conduct Authority) has decided to cancel the
registration granted to Euro Commercial Trading Limited (formerly Financial
Guarantee Limited) (“ECT”), as an Annex 1 financial institution under the MLR.

REASONS FOR THE ACTION

2.
ECT has failed to pay a charge imposed by the Authority. Therefore the Authority
may cancel ECT’s registration under the MLR in accordance with Regulation
34(7)(a) of the MLR, which permits cancellation of the registration of an Annex 1
financial institution (as defined in Regulation 22(1)) where it appears to the
Authority that a condition in Regulation 34(3)(c) is met, including failure to pay a
charge imposed by the Authority under Regulation 35(1).

RELEVANT STATUTORY PROVISIONS

3.
The statutory and regulatory provisions relevant to this Notice of Decision to
Cancel are set out in the Annex.

FACTS AND MATTERS RELIED ON

4.
ECT was authorised by the Authority on 5 July 2012 as an Annex 1 financial
institution (as defined in Regulation 22(1) of the MLR).

5.
ECT has failed to pay a charge of £400 comprising fees and levies imposed by the
Authority, which was due for payment by 21 August 2013.

6.
By its Notice of Proposed Cancellation dated 9 May 2014, the Authority gave
notice that it proposed to cancel ECT’s registration as an Annex 1 financial
institution under the MLR and ECT was given the opportunity to make
representations to the Authority about that proposed action.

7.
Regulation 34(9) of the MLR requires the Authority then to decide whether to
cancel ECT’s registration.

8.
No representations have been received by the Authority from ECT within the time
allowed by the Notice of Proposed Cancellation. The Authority has therefore
decided to cancel ECT’s registration as an Annex 1 financial institution for the
reasons described above. The cancellation of ECT will take effect on 24 July
2014.

PROCEDURAL MATTERS

Decision maker

9.
The decision which gave rise to the obligation to give this Notice of Decision to
Cancel was made by the Deputy Chairman of the Regulatory Decisions
Committee.

10.
This Notice of Decision to Cancel is given to ECT under Regulation 34(9)(b) and is
being served on ECT at the address last notified to the Authority as ECT’s
principal place of business.

The Upper Tribunal

11.
ECT has the right to refer the matter to which this Notice of Decision to Cancel
relates to the Upper Tribunal. The Tax and Chancery Chamber is the part of the
Upper Tribunal which, among other things, hears references arising from
decisions of the Authority. Under paragraph 2(2) of Schedule 3 of the Tribunal
Procedure (Upper Tribunal) Rules 2008, ECT has 28 days from the date on which
this Notice of Decision to Cancel is given to ECT to refer the matter to the Upper
Tribunal.

12.
A reference to the Upper Tribunal is made by way of a reference notice (Form
FTC3) signed by ECT (or on ECT’s behalf) and filed with a copy of this Notice.
The Tribunal’s contact details are: The Upper Tribunal, Tax and Chancery
Chamber, 45 Bedford Square, London WC1B 3DN (tel: 020 7612 9700; email:
FS@tribunals.gsi.gov.uk.

3

13.
For further information on the Upper Tribunal (including the power to vary time
periods) you should refer to the HM Courts and Tribunal Service website which
will provide guidance and the relevant form to complete. The relevant page on
HM Courts and Tribunal Service website can be accessed via the following link:

14.
A copy of Form FTC3 must also be sent to Adam Doe at the Authority, 25 The
North Colonnade, Canary Wharf, London E14 5HS at the same time as filing a
reference with the Upper Tribunal.

Access to evidence

15.
A schedule of the material upon which the Authority has relied in deciding to give
ECT this Notice of Decision to Cancel was given to ECT with the Notice of
Proposed Cancellation.

Confidentiality and publicity

16.
This Notice may contain confidential information and should not be disclosed to a
third party (except for the purpose of obtaining advice on its contents).

17.
However, the Authority may publish such information about the matter to which a
Notice served under Regulation 34(9) relates as it considers appropriate. The
information published may contain reference to the facts and matters contained
in this Notice.

Contacts

18.
For more information concerning this matter generally, ECT should contact Adam
Doe at the Authority (direct line: 020 7066 5522).

Peter Hinchliffe
Deputy Chairman, Regulatory Decisions Committee

ANNEX

RELEVANT STATUTORY PROVISIONS

1.
Regulation 35(1) of the Money Laundering Regulations 2007 (the “MLR”) states:

“The Authority… may impose charges—

(a) on applicants for registration;

(b) on relevant persons supervised by them.”

2.
Regulation 34(7) of the MLR states:

“The Authority… may cancel a person’s registration in a register
maintained by them under regulation 32 if, at any time after registration -

(a) it appears to them that any condition in paragraph (3) is
met...”.

3.
Regulation 34(3) of the MLR states:

“The Authority… may refuse to register an applicant for registration in a
register maintained under regulation 32 only if—

(c) the applicant has failed to pay a charge imposed by the
Authority… under regulation 35(1).”

4.
Regulation 34(8) of the MLR states:

“Where the Authority… proposes to cancel a person’s registration, it must

give him notice of—

(a)
its proposal to cancel his registration;

(b)
the reasons for the proposed cancellation; and

(c)
the right to make representations to it within a specified
period (which may not be less than 28 days).”

5.
Regulation 34(9) of the MLR states:

“The Authority… must then decide, within a reasonable period, whether to
cancel the person’s registration and it must give him notice of—

(b)(i) its decision to cancel his registration and … the date from
which the cancellation takes effect;

(ii)
the reasons for its decision; and

(iii)
the right to appeal under regulation 44(1)(b).

6.
Regulation 44(1) of the MLR states:

“A person may appeal from a decision by—

(b)
the Authority… under regulation 34

(2)
An appeal from a decision by—

(b)
the Authority is to the Upper Tribunal.”

OTHER RELEVANT REGULATORY PROVISIONS

7.
The Authority’s policy in relation to exercising its enforcement powers is set out in
the Enforcement Guide (“EG”), the relevant provisions of which are summarised
below.

8.
EG 19.77 provides that, in relation to the MLR, the Authority has decided to adopt
enforcement and decision making procedures, in relation to the use of its
investigation and sanctioning powers, broadly akin to those it has under the
Financial Services and Markets Act 2000 (the “Act”). The types of circumstances
in which the Authority will consider cancelling a firm’s Part 4A Permission under
the Act include failure to pay fees and levies owed to the Authority.

9.
EG 19.81 provides that, although the MLR do not require it, the Authority will
involve third parties and provide access to Authority material when it gives
notices under the Regulations, in a manner consistent with the provisions of
sections 393 and 394 of the Act.