FINAL NOTICE

ACTION

1. For the reasons given in this notice, the FSA hereby:

a) imposes on Mrs Karan a financial penalty of £75,000; and

b) makes an order prohibiting Mrs Karan from performing any function in
relation to any regulated activities carried on by any authorised or exempt
persons, or exempt professional firm. This order takes effect from 27 June
2012.

REASONS FOR ACTION

2. The FSA gave Mrs Karan a Decision Notice on 9 July 2010 which notified her that
the FSA had decided to impose a financial penalty on her pursuant to section 66 of the
Financial Services and Markets Act 2000 (“the Act”) and make a prohibition order
pursuant to section 56 of the Act.

3. On 23 August 2010, Mrs Karan referred this Decision Notice to the Upper Tribunal
(Tax and Chancery Chamber) (“the Tribunal”). The written decision of the Tribunal
was released on 15 May 2012 and can be found on the Tribunal’s website.

4. The Tribunal determined that the FSA should impose on Mrs Karan a financial
penalty of £75,000 pursuant to section 66 of the Act and make a prohibition order,

pursuant to section 56 of the Act, prohibiting Mrs Karan from performing any
function in relation to any regulated activity carried on by any authorised or exempt
person or exempt professional firm on the grounds that she is not a fit and proper
person.

PROCEDURAL MATTERS

5. This Final Notice is given under, and in accordance with, section 390 of the Act.

Manner of and time for Payment

6. The financial penalty must be paid in full by Mrs Karan to the FSA by no later than
11 July 2012, 14 days from the date of the Final Notice.

If the financial penalty is not paid

7. If all or any of the financial penalty is outstanding beyond the date payment is due,
the FSA may recover the outstanding amount as a debt owed by Mrs Karan and due to
the FSA.

8. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of information
about the matter to which this notice relates. Under those provisions, the FSA must
publish such information about the matter to which this 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 Mrs Karan or prejudicial to
the interests of consumers.

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

FSA contacts

10. For more information concerning this matter generally, contact Nick Bayley (direct
line: 020 7066 5342 /fax: 020 7066 5343) of the Enforcement and Financial Crime
Division of the FSA.

FSA Enforcement and Financial Crime Division