FINAL NOTICE

Address:

34 New House

ACTION

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

2.
The Authority gave Highview the Decision Notice which notified Highview that for
the reasons given below and pursuant to section 55J of the Act, the Authority had
decided to cancel Highview’s Interim Permission.

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

4.
Accordingly, the Authority has today cancelled Highview’s Interim Permission.

DEFINITIONS

5.
The definitions below are used in this Final Notice:

“the 2013 Order” means the Financial Services and Markets Act 2000 (Regulated
Activities) (Amendment) (No. 2) Order 2013;

“the Act” means the Financial Services and Markets Act 2000;


“the Authority” means the Financial Conduct Authority;

“the Awards” means the Final Decision made by the FOS against Highview: on 30
September 2014, in relation to Miss R (decision reference: DRN9747481); and on
24 November 2014, in relation to Mr A (decision reference: DRN9970939);

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

“the Decision Notice” means the Decision Notice given to Highview dated 2
October 2015;

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

“Highview” means Highview Financial Services Limited;

“Highview’s Interim Permission” means the interim permission granted to
Highview following the transfer of consumer credit regulation from the OFT to the
Authority on 1 April 2014;

“Miss R” means the customer of Highview who made the complaint to the FOS to
which decision reference DRN9747481 refers;

“Mr A” means the customer of Highview who made the complaint to the FOS to
which decision reference DRN9970939 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 Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and

“the Warning Notice” means the Warning Notice given to Highview dated 27
August 2015.

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 Highview, and in the Decision Notice, it appears to the Authority
that:


as a result of Highview’s persistent failure to comply with the Awards, despite
repeated requests by the FOS and the Authority that it comply, Highview 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 Awards, despite repeated requests by the FOS and
the Authority that it comply, Highview 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, Highview is not a fit and proper person
because it has failed to satisfy the Authority that it is conducting its 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 16 August 2012, the OFT issued a Consumer Credit Licence to Highview.

9.
On 1 April 2014, following the transfer of Consumer Credit regulation from the
OFT to the Authority, Highview 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 30 November 2013.

10.
Miss R complained to the FOS that Highview took a payment of £79.95 from her
bank account, but, when it failed to find her a loan, Highview failed to refund the
amount. In its decision of 30 September 2014, the FOS upheld Miss R’s complaint
and ordered Highview to refund Miss R £79.95 and pay to her simple interest on
that sum from the date the fee was taken to the date of refund. The FOS also
awarded Miss R £50 compensation for distress and inconvenience. Miss R
accepted the FOS’s decision on 4 October 2014.

11.
Mr A complained to the FOS that Highview took £79.95 from his bank account in
order to find him a loan. Mr A had not authorised the payment, and a loan was
not agreed. In its decision of 24 November 2014, the FOS upheld Mr A’s
complaint and ordered Highview to refund to Mr A £79.95 and pay to him simple
interest on that sum from the date the fee was taken to the date of refund. The
FOS also ordered Highview to pay to Mr A an additional £75 for the inconvenience
caused, with simple interest due if Mr A failed to receive a refund within 28 days
of accepting the FOS’s decision. Mr A accepted the FOS’s decision on 26
November 2014.

12.
Highview did not seek a judicial review of the Awards, which therefore remain
binding on Highview under section 228(5) of the Act. Highview has failed to
comply with the Awards, despite repeated requests by the FOS and the Authority
that it do so.

DECISION MAKER

13.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

14.
This Final Notice is given to Highview in accordance with section 390(1) of the
Act.

15.
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 Highview or prejudicial to the interest of consumers.

16.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.

17.
For more information concerning this matter generally, Highview should 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.
Article 56(9) of the 2013 Order provides that an interim permission is to be
treated as a Part 4A permission (except in certain circumstances, not relevant to
this Notice).

3.
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.

4.
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.

5.
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

6.
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.

7.
Authority Rule DISP 3.7.12R(1), requires that a respondent (Highview is a
respondent under the definition given in the Handbook), complies promptly with
any award or direction made by the FOS.

8.
Principle 6 (Customers’ interests) of the Principles requires a firm to pay due
regard to the interests of its customers and treat them fairly.

9.
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

10.
Guidance on the Threshold Conditions is set out in COND.

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

11.
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)).

12.
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)).

13.
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

14.
The Authority’s policy in relation to its enforcement powers is set out in EG.

15.
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.

16.
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.

17.
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.