FINAL NOTICE

Address:

The Design Exchange


34 Peckover Street


Bradford


West Yorkshire


BD1 5BD

FCA
Reference
Number:

669427


ACTION

1.
For the reasons set out in this Final Notice, the Authority hereby takes the
following action against Mr Goodyear.

2.
The Authority gave Mr Goodyear the Decision Notice which notified Mr Goodyear
that for the reasons given below and pursuant to section 55J of the Act, the
Authority had decided to cancel Mr Goodyear’s Part 4A permission.

3.
Mr Goodyear has not referred the matter to the Tribunal within 28 days of the
date on which the Decision Notice was given to him.

4.
Accordingly, the Authority has today cancelled Mr Goodyear’s Part 4A permission.

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;


“COND” means the Guidance on the Threshold Conditions set out in the
Handbook;

“the Decision Notice” means the Decision Notice given to Mr Goodyear dated 10
March 2016;

“DISP” means the Dispute Resolution: Complaints Manual, which is part of the
Handbook;

“EG” means the Enforcement Guide;

“the FOS” means the Financial Ombudsman Service;

“the FOS Award” means the Final Decision made by the FOS against Mr Goodyear
on 10 April 2015, in relation to Mr W (decision reference: DRN6361761);

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

“Mr Goodyear” means Glyn Goodyear;

“Mr Goodyear’s Part 4A permission” means the permission granted by the
Authority to Mr Goodyear under the Act;

“Mr W” means the customer of Mr Goodyear who made the complaint to the FOS
to which decision reference DRN6361761 refers;

“the OFT” means the Office of Fair Trading;

“the Principles” means the Authority’s Principles for Businesses;

“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 given to Mr Goodyear dated 21
January 2016.

RELEVANT STATUTORY PROVISIONS

6.
The statutory and regulatory provisions relevant to this Notice are set out in the
Annex.

SUMMARY OF THE REASONS

7.
On the basis of the facts and matters and conclusions described in the Warning
Notice issued to Mr Goodyear, and in the Decision Notice, it appears to the
Authority that:

•
as a result of Mr Goodyear’s persistent failure to comply with the FOS Award,
despite repeated requests by the FOS and the Authority that he comply, Mr

Goodyear has breached DISP 3.7.12R(1), which requires a firm to comply
promptly with any award or direction made against it by the FOS;

•
by not complying with the FOS Award, Mr Goodyear has also breached
Principle 6 (Customers’ interests) of the Principles, which requires a firm to
pay due regard to the interests of its customers and treat them fairly;

•
also, by not complying with the FOS Award, despite repeated requests by the
FOS and the Authority that he do so, Mr Goodyear has breached Principle 11
(Relations with regulators) of the Principles, which requires a firm to deal with
its regulator in an open and co-operative way, and to disclose to the Authority
anything relating to the firm of which the Authority would reasonably expect
notice; and

•
considering all the circumstances, Mr Goodyear is not a fit and proper person
because he has failed to satisfy the Authority that he is conducting his affairs
in an appropriate manner, having regard in particular to the interests of
consumers, and is therefore failing to satisfy the suitability Threshold
Condition.

FACTS AND MATTERS RELIED ON

8.
On 1 April 2014, following the transfer of Consumer Credit regulation from the
OFT to the Authority, Mr Goodyear was granted an Interim Permission to conduct
regulated activities relating to consumer credit, having submitted an application
to the Authority for an Interim Permission on 21 March 2014.

9.
On 3 June 2015, Mr Goodyear was authorised by the Authority to conduct
consumer credit business, having submitted an application to the Authority for a
Part 4A permission on 29 December 2014.

10.
Mr W complained to the FOS that Mr Goodyear failed to provide the debt-
counselling service he expected. In its decision of 10 April 2015, the FOS upheld
Mr W’s complaint and directed Mr Goodyear to:

•
refund Mr W the three £600 instalments he paid to Mr Goodyear;

•
pay simple interest at 8% per annum on each refund from the date each
payment was made (21 February 2011, 21 March 2011 and 21 April 2011
respectively) to the date of settlement; and

•
pay Mr W £500 compensation for the upset and inconvenience caused by Mr
Goodyear’s overall treatment of Mr W and the way he handled Mr W’s
complaint.

11.
Mr Goodyear did not seek a judicial review of the FOS Award, which therefore
remains binding on him under section 228(5) of the Act. Mr Goodyear has failed
to comply with the FOS Award, despite repeated requests by the FOS and the
Authority that he do so.

DECISION MAKER

12.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

13.
This Final Notice is given to Mr Goodyear in accordance with section 390(1) of the
Act.

14.
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 a 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 Mr Goodyear or prejudicial to the interest of
consumers.

15.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.

16.
For more information concerning this matter generally, please contact Adam Doe
at the Authority (direct line: 020 7066 5522).

John Kirby
Enforcement and Market Oversight Division




























ANNEX

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational objectives established in section 1(B) of the Act
include the protection of consumers.

2.
The Authority is authorised by section 55J of the act to cancel an authorised
person’s Part 4A permission, where it appears to the Authority that it is failing to
satisfy the Threshold Conditions.

3.
Section 228(5) of the Act provides that if the complainant notifies the FOS that he
accepts the determination, it is binding on the respondent and the complainant,
and is final.

4.
The suitability Threshold Condition provides, in relation to a person (“A”) carrying
on or seeking to carry on regulated activities which do not consist of or include a
PRA-regulated activity, that:

“A must be a fit and proper person having regard to all the circumstances,
including –

(c)
the need to ensure that A’s affairs are conducted in an appropriate
manner, having regard in particular to the interests of consumers
[…]

(f)
whether A’s business is being, or is to be, managed in such a way
as to ensure that its affairs will be conducted in sound and prudent
manner;”

RELEVANT REGULATORY PROVISIONS

5.
In exercising its power to cancel a Part 4A permission, the Authority must have
regard to guidance published in the Handbook. The relevant main considerations
in relation to the cancellation action specified above are set out below.

6.
Authority Rule DISP 3.7.12R(1), requires that a respondent (Mr Goodyear is a
respondent under the definition given in the Handbook), complies promptly with
any award or direction made by the FOS.

7.
Principle 6 (Customers’ interests) of the Principles requires a firm to pay due
regard to the interests of its customers and treat them fairly.

8.
Principle 11 (Relations with regulators) of the Principles states that a firm must
deal with its regulators in an open and co-operative way.

Guidance concerning the relevant Threshold Condition

9.
Guidance on the Threshold Conditions is set out in COND.

COND 2.5 – Suitability: Paragraph 2E of Schedule 6 to the Act

10.
COND 2.5.1AUK(1) reproduces the relevant statutory provision that the person
concerned must satisfy the Authority that he is a fit and proper person having
regard to all the circumstances including, amongst other things, the need to
ensure that his affairs are conducted in an appropriate manner, having regard in
particular to the interests of consumers and the integrity of the UK financial
system, and whether the firm’s business is being managed in such a way as to
ensure that its affairs are being conducted in a sound and prudent manner (COND
2.5.1AUK(1)(c) and (f)).

11.
COND 2.5.4G(2) states that examples of the considerations to which the
Authority may have regard when assessing whether a firm will satisfy and
continue to satisfy the Threshold Conditions include whether the firm conducts its
business in compliance with proper standards (COND 2.5.4G(2)(a)).

12.
COND 2.5.6G states that the Authority, when forming its opinion as to whether a
firm is conducting its business with integrity and in compliance with proper
standards, may have regard to considerations, including whether the firm has
been open and co-operative in all its dealings with the Authority and is ready,
willing and organised to comply with the requirements and standards under the
regulatory system (COND 2.5.6G(1)), and whether the firm has contravened any
provisions of the Act or the regulatory system, which include the Threshold
Conditions, the Principles and other rules (COND 2.5.6G(4)).

Cancelling a firm’s Part 4A permission on the Authority’s own initiative

13.
The Authority’s policy in relation to its enforcement powers is set out in EG.

14.
EG 8.1(1) provides that the Authority may use its own initiative power to vary or
cancel the permission of an authorised person under section 55J of the Act, where
the person is failing or is likely to fail to satisfy the threshold conditions for which
the Authority is responsible.

15.
EG 8.13(1) states that the Authority will consider cancelling a firm’s Part 4A
permission using its own initiative powers contained in section 55J of the Act in
circumstances where the Authority has very serious concerns about the firm, or
the way its business is or has been conducted.

16.
EG 8.14 provides examples of the circumstances in which the Authority will
consider cancelling a Part 4A permission and EG 8.14(1) specifies that non-
compliance with an award made by the FOS against a firm is one such
circumstance.