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FINAL NOTICE

ACTION

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


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


3.
Mr Rehman 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 Rehman’s Part 4A permission.


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DEFINITIONS

5.
The definitions below are used in this Final Notice (and in the Annex):

“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 Mr Rehman on 24
Febuary 2017;

“EG” means the Authority’s Enforcement Guide;

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

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

“Mr Rehman’s Part 4A permission” means the permission granted by the
Authority to Habib-Ur Rehman pursuant to Part 4A of the Act;

“the suitability Threshold Condition” means the threshold condition set out in
paragraph 2E of Schedule 6 to the Act;


“SUP” means the section of the Authority’s Handbook entitled ‘Supervision
Manual’;

“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 to RRL on 22 December
2016.

RELEVANT STATUTORY PROVISIONS

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

FACTS AND MATTERS

7.
Mr Rehman was authorised by the Authority on 1 October 2012 to conduct
mortgage mediation and general insurance mediation activities.


8.
Mr Rehman has failed to co-operate with the Authority in that he has failed to
respond adequately, or at all, to repeated Authority correspondence requesting
that he provide information relating to his mortgage activities.


FAILINGS

9.
The Authority has concluded, on the basis of the facts and matters described
above, that Mr Rehman:

a. has failed to comply with Principle 11 (which requires a firm to deal with its

regulators in an open and co-operative way and to disclose to the Authority
appropriately anything relating to the firm of which the Authority would
reasonably expect notice);

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b. has failed to satisfy the Authority that he is ready, willing and organised to

comply with the requirements and standards under the regulatory system;

c. has therefore failed to satisfy the Authority that his business is being

managed in such a way as to ensure that his affairs will be conducted in a
sound and prudent manner or that he is a fit and proper person having regard
to all the circumstances; and

d. is therefore failing to satisfy the suitability Threshold Condition in relation to

his permitted regulated activities,

and accordingly, Mr Rehman’s Part 4A permission should be cancelled.

DECISION MAKER

10.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

11.
This Final Notice is given to Mr Rehman in accordance with section 390(1) of the
Act.

Publicity

12.
The Authority must publish such information about 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 information would, in the opinion of the Authority, be
unfair to Mr Rehman or prejudicial to the interests of consumers.


13.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.


Authority Contact

14.
For more information concerning this matter generally, Mr Rehman should contact
Janan Akkad at the Authority (direct line: 0207 066 0230).

John Kirby
Enforcement and Market Oversight Division












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ANNEX

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 section 55J of the Act to cancel a firm’s Part 4A
permission where it appears to the Authority that such a person is failing to
satisfy the Threshold Conditions.

3.
The suitability Threshold Condition provides that:

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

(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 a sound and
prudent manner. […]”

RELEVANT HANDBOOK AND OTHER REGULATORY PROVISIONS

4.
In exercising its power to cancel a firm’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 Decision Notice are set out below.

5.
Principle 11 requires a firm to deal with its regulators in an open and co-operative
way, and to disclose to the Authority appropriately anything relating to the firm of
which the Authority would reasonably expect notice.

Guidance concerning the relevant Threshold Condition

6.
Guidance on the Threshold Conditions is set out in COND

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

7.
COND 2.5.1AUK reproduces the relevant statutory provision that a person
concerned must be a fit and proper person having regard to all the
circumstances, including, amongst other things, the need to ensure that its
business is being managed in such a way as to ensure that its affairs will be
conducted in a sound and prudent manner.

8.
COND 2.5.1BG confirms that Paragraph 2E of Schedule 6 to the Act sets out the
suitability Threshold Condition for firms carrying on, or seeking to carry on,
regulated activities which do not consist of or include a PRA-regulated activity.

9.
COND 2.5.2G states that the Authority will take into consideration anything that
could influence a firm’s continuing ability to satisfy the suitability Threshold
Condition.

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10.
COND 2.5.6G gives examples of the kind of particular considerations to which the
Authority may have regard when assessing whether a firm will satisfy, and
continue to satisfy, the suitability Threshold Condition including, but not limited
to, 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)); or


the firm has contravened, amongst other things, any provisions of the
regulatory system, which includes the Principles and other rules (COND
2.5.6G(4)).

OTHER RELEVANT REGULATORY PROVISIONS

11.
The Authority’s policy in relation to exercising its powers is set out in EG, the
relevant provisions of which are summarised below.

Exercising the power to cancel a Part 4A permission on its own initiative under section
55J of the Act: the Authority’s policy

12.
EG 8.1 reflects the provisions of section 55J of the Act that the Authority may use
its own-initiative power to cancel the Part 4A permission of an authorised firm
where a firm is failing or is likely to fail to satisfy the Threshold Conditions (EG
8.1(1)); or where it is desirable to exercise the power in order to advance one or
more of its operational objectives (EG 8.1(3)).

13.
EG 8.13(1) provides that the Authority will consider cancelling a firm’s Part 4A
permission using its own-initiative powers contained in section 55J where the
Authority has very serious concerns about a firm, or the way its business is or has
been conducted.

14.
EG 8.14 sets out examples of the circumstances in which the Authority will
consider cancelling a firm’s Part 4A permission. EG 8.14(8), which states that a
failure to co-operate with the Authority which is of sufficient seriousness that the
Authority ceases to be satisfied that the firm is fit and proper, for example failing
without reasonable excuse to provide material information or take remedial action
reasonably required by the Authority, is one such example (EG 8.14(8)(b)).