_____________________________________________________________________


FINAL NOTICE

_____________________________________________________________________

To:

Kumarans Silk Limited

Of:



144 Hoe Street




London




E17 4QR








FSA reference number:
511971


Dated:


5 January 2012

TAKE NOTICE: The Financial Services Authority of 25 The North Colonnade,
Canary Wharf, London E14 5HS (the “FSA”) has taken the following action

1.
ACTION

1.1.
The FSA gave Kumarans Silk Limited a Decision Notice on 23 November
2011 (the “Decision Notice”) which notified Kumarans Silk Limited that for
the reasons given below and pursuant to Regulation 10(1)(h) of the Payment
Services Regulations 2009 (the “PSR”), the FSA had decided to cancel the
registration granted to Kumarans Silk Limited as a small payment institution
under the PSR.

1.2.
Kumarans Silk Limited was informed of its statutory right to make a reference
to the Upper Tribunal (Tax and Chancery Chamber) (the “Upper Tribunal”),
but it has not referred the Decision Notice to the Upper Tribunal within 28
days of the date on which the Decision Notice was given to it.


1.3.
Accordingly, the FSA has today cancelled Kumarans Silk Limited’s
registration as a small payment institution.




2.
REASONS FOR ACTION

2.1.
On the basis of the facts and matters and conclusions described in its Warning
Notice dated 13 October 2011 (the “Warning Notice”), and in the Decision
Notice (an extract of the Decision Notice is attached to and forms part of this
Notice), the FSA has concluded that Kumarans Silk Limited has failed to
submit the Payment Services Directive Transactions return (the “FSA057”),
for the period ended 31 December 2010, and to respond adequately to repeated
FSA requests that it submit the FSA057.

2.2.
These failings lead the FSA to conclude that:

• Kumarans Silk Limited has failed to comply with the requirement that
it submit the FSA057 to the FSA;

• Kumarans Silk Limited has failed to demonstrate a readiness and
willingness to:

a) comply with its ongoing regulatory obligations; and

b) deal with the FSA in an open and co-operative way;

• it is therefore desirable to cancel Kumarans Silk Limited’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.
DECISION MAKER

4.1.
The decision which gave rise to the obligation to give this Final Notice was
made by the Regulatory Decisions Committee.

5.
IMPORTANT

5.1.
This Final Notice is given to Kumarans Silk Limited 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

5.2.
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 Kumarans Silk Limited or prejudicial to the interests of consumers.

5.3.
The FSA intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.

FSA contact

5.4.
For more information concerning this matter generally, please contact Sarah
Brewer (direct line: 020 7066 8886/fax: 020 7066 6677) at the FSA.






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

EXTRACT FROM THE DECISION NOTICE DATED 23 NOVEMBER 2011
ISSUED BY THE FSA TO KUMARANS SILK LIMITED

“FACTS AND MATTERS RELIED ON

7. Kumarans Silk Limited was registered by the FSA on 6 January 2010 as a small
payment institution.

8. Kumarans Silk Limited is required to submit the FSA057. Despite repeated
requests and warnings, Kumarans Silk Limited has failed to submit the FSA057
for the period ended 31 December 2010.

9. By its Warning Notice dated 13 October 2011 (the “Warning Notice”), the FSA
gave notice that it proposed to take the action described above and Kumarans Silk
Limited was given the opportunity to make representations to the FSA about that
proposed action.

10. No representations having been received by the FSA from Kumarans Silk Limited
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, and repeated above, to be regarded
as undisputed.”


END OF EXTRACT


ANNEX TO THE FINAL NOTICE ISSUED BY THE FSA TO KUMARANS
SILK LIMITED ON 5 JANUARY 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) (as applied by Regulation 14) of the PSR, the FSA
may cancel the registration of a small payment institution if the cancellation is
desirable in order to protect the interests of consumers.

3.
Regulation 82 of the PSR states:

“(1) A payment service provider must give the Authority such
information in respect of its provision of payment services and its
compliance
with
requirements
imposed
by
or
under…these
Regulations as the Authority may direct.

(2) Information required under this regulation must be given at such
times and in such form, and verified in such manner, as the Authority
may direct.”

RELEVANT HANDBOOK PROVISIONS

4.
In exercising its power to cancel the registration of a small payment
institution, the FSA must have regard to guidance published in the FSA’s
Handbook of rules and guidance (the “Handbook”). The relevant main
considerations in relation to the action specified above are set out below.

Relevant Directions

5.
FSA Direction SUP 16.13.4D, in the Supervision manual of the Handbook,
directs that a small payment institution is required to submit the FSA057
annually, one month from 31 December.

6.
FSA Direction SUP 16 Annex 28A D specifies the format in which the
FSA057 is to be completed and submitted.

OTHER RELEVANT REGULATORY PROVISIONS


7.
The FSA’s policy in relation to exercising its enforcement powers is set out in
the Enforcement Guide (“EG”).

8.
EG 19.91 provides that the FSA’s approach to enforcing the PSR will mirror
its general approach to enforcing the Act.

9.
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. Relevantly in this regard, the types
of circumstances in which the FSA will consider cancelling a firm’s Part IV
permission under the Act include the non-submission of regulatory returns.