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_____________________________________________________________________


FINAL NOTICE

_____________________________________________________________________

To:

Fawad Afzal Choudhry

Of:



6 Stratford Road




Wolverton




Milton Keynes




Buckinghamshire
MK12 5LJ



FSA reference number:
511994

Dated:


16 May 2012


1.
ACTION

1.1.
For the reasons given below in this Final Notice, the Financial Services Authority (the
“FSA”) has taken the following action against Fawad Afzal Choudhry (“Mr
Choudhry”).

1.2.
The FSA gave Mr Choudhry a Decision Notice on 12 April 2012 (the “Decision
Notice”) which notified Mr Choudhry that for the reasons given below and pursuant
to Regulation 10(1)(h) of the Payment Services Regulations 2009 (the “PSR”) (as
applied by regulation 14 of the PSR), the FSA had decided to cancel the registration
granted to Mr Choudhry as a small payment institution under the PSR.

1.3.
Mr Choudhry was informed of his statutory right to make a reference to the Upper
Tribunal (Tax and Chancery Chamber) (the “Upper Tribunal”), but he has not referred
the Decision Notice to the Upper Tribunal within 28 days of the date on which the
Decision Notice was given to him.


1.4.
Accordingly, the FSA has today cancelled Mr Choudhry’s registration as a small
payment institution.

2.
REASONS FOR ACTION


2.1.
On the basis of the facts and matters described below, the FSA has concluded that the
address of the head office of Mr Choudhry has changed and he has failed to notify the
FSA of that change thereby preventing the FSA from regulating his business
effectively. It is therefore desirable to cancel Mr Choudhry’s registration as a small
payment institution in order to protect the interests of consumers, in accordance with
Regulation 10(1)(h) of the PSR (as applied by Regulation 14).

3.
RELEVANT STATUTORY AND REGULATORY PROVISIONS

3.1.
The statutory and regulatory provisions relevant to this Final Notice are set out in the
Annex.

4.
FACTS AND MATTERS RELIED ON

4.1.
Mr Choudhry was registered by the FSA on 24 November 2009 as a small payment
institution.

4.2.
The FSA has repeatedly attempted to contact Mr Choudhry using the contact details
and address last given by Mr Choudhry to the FSA as his head office. These contact
details are no longer valid.

4.3.
Mr Choudhry has not notified the FSA of a change in the address of his head office.

4.4.
By its Warning Notice dated 1 March 2012 (the “Warning Notice”), the FSA gave
notice that it proposed to cancel Mr Choudhry’s registration as a small payment
institution, and Mr Choudhry was given the opportunity to make representations to
the FSA about that proposed action.

4.5.
No representations having been received by the FSA from Mr Choudhry within the
time allowed by the Warning Notice, the default procedures in DEPP 2.3.2G of the
FSA’s Decision Procedure and Penalties Manual permit the facts and matters
described in the Warning Notice to be regarded as undisputed.

4.6.
By its Decision Notice dated 12 April 2012 (the “Decision Notice”), the FSA gave
notice that it had decided to take action to cancel Mr Choudhry’s registration for the
reasons described in the Decision Notice.

5.
DECISION MAKER


5.1.
The decision which gave rise to the obligation to give this Final Notice was made by
the Regulatory Decisions Committee.


6.
IMPORTANT

6.1.
This Final Notice is given to Mr Choudhry in accordance with section 390(1) of the
Financial Services and Markets Act 2000 (the “Act”) (as applied by paragraph 7(b) of
Part 1 of Schedule 5 to the PSR).

Publicity

6.2.
Sections 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 7(c) of Part 1
of Schedule 5 of the PSR) 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 Mr Choudhry or prejudicial to the
interests of consumers.

6.3.
The FSA intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.

FSA contact

6.4.
For more information concerning this matter generally, please contact Anu Upadhya
(direct line: 020 7066 9536/fax: 020 7066 9537) at the FSA.






……………………………………………………..
John Kirby
FSA Enforcement and Financial Crime Division

ANNEX TO THE FINAL NOTICE ISSUED BY THE FINANCIAL SERVICES

AUTHORITY TO FAWAD AFZAL CHOUDHRY ON 16 MAY 2012


RELEVANT STATUTORY PROVISIONS

1.
Regulation 14 of the PSR states:

“Regulations 7 to 11 apply to registration as a small payment institution as they
apply to authorisation as a payment institution …”

2.
Under regulation 10(1)(h) of the PSR (as applied by regulation 14), the FSA may
cancel the registration of a small payment institution where the cancellation is
desirable in order to protect the interests of consumers.

3.
Under regulation 13(5) of the PSR, it is a condition for registration as a small
payment institution that, among other conditions, its head office must be in the United
Kingdom.

4.
Regulation 32(1) of the PSR states:

“Where it becomes apparent to … a small payment institution that there is, or is
likely to be, a significant change in circumstances which is relevant to - …

(b)
… its fulfilment of any of the conditions set out in regulation 13(4) to
(6) …

it must provide [the FSA] with details of the change without undue delay, or, in
the case of a substantial change in circumstances which has not yet taken place,
details of the likely change a reasonable period before it takes place.”

5.
A change in the address of a small payment institution’s head office is a significant
change in circumstances. That address is relevant to the firm’s fulfilment of the
condition set out in regulation 13(5). Therefore, regulation 32 gives rise to the
obligation to notify the FSA without undue delay of any change in that address.

OTHER RELEVANT REGULATORY PROVISIONS

6.
The FSA’s policy in relation to exercising its enforcement powers generally is set out
in the Enforcement Guide (“EG”) and, in relation to the PSR, from EG 19.90.

7.
EG 19.91 provides that the FSA’s approach to enforcing the PSR will mirror its
general approach to enforcing the Act.

8.
EG 19.93 provides that, in relation to the PSR, the FSA has decided to adopt
procedures and policies in relation to the use of its sanctioning and regulatory powers
akin to those it has under the Act. Relevant in this regard, the types of circumstances
in which the FSA will consider cancelling a firm’s Part IV permissions under the Act
include failure to provide the FSA with valid contact details, such that the FSA is
unable to communicate with the firm.

9.
The document “The FSA’s role under the Payment Services Regulations 2009: Our
approach” (updated in August 2011) provides guidance to give a practical
understanding of the requirements of the PSR and the FSA’s regulatory approach.
The FSA’s approach to enforcement is described in chapter 14. Paragraph 14.8 (What
sanctions can we use when a payment service provider breaches the PSRs?) relates to
the use of cancellation of the registration of a small payment institution where certain
criteria set out in the PSRs are met.