Final Notice
On , the Financial Conduct Authority issued a Final Notice to Leeds Money Transfer Ltd
FINAL NOTICE
To:
Leeds Money Transfer Ltd
Address:
10A The Crescent, Hyde Park, Leeds, LS6 2NW
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action.
2.
The Authority issued the Firm with the Decision Notice which notified it that for the
reasons given below and pursuant to regulation 10(1)(h) (as applied by regulation 15) of
the PSRs, the Authority has decided to cancel the Firm’s registration as a SPI.
3.
The Firm 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 the registration granted to the Firm, as a
SPI, under the PSRs.
SUMMARY OF REASONS
5.
The Authority has concluded, on the basis of the facts and matters set out below, that
the Firm no longer requires its registration. The Authority therefore considers that it is
desirable to cancel the Firm’s registration as a SPI in order to protect the interests of
consumers, in accordance with Regulation 10(1)(h) (as applied by regulation 15) of the
PSRs.
DEFINITIONS
6.
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 given to Leeds Money Transfer Ltd dated
28 June 2024;
“DEPP” means the Authority’s Decision Procedure and Penalties manual;
“EG” means the Authority’s Enforcement Guide;
“the Firm” means Leeds Money Transfer Ltd;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the PSRs” means the Payment Services Regulations 2017;
“Returns” means annual regulatory report submitted by a SPI to the Authority using form
FSA057;
SPI means “Small Payment Institution” as defined in Regulation 2(1) of the PSRs;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the warning notice given to Leeds Money Transfer Ltd dated
20 May 2024.
RELEVANT STATUTORY PROVISIONS
7.
The statutory and regulatory provisions relevant to this Final Notice are set out in the
Annex.
FACTS AND MATTERS
8.
On 21 October 2015, the Firm was registered by the Authority. In 2018, the Firm was
required to re-register with the Authority following the introduction of the PSRs. The Firm
was re-registered by the Authority as a SPI on 23 November 2018.
9.
SPIs are required by rules made by the Authority under the PSRs to report certain
information to the Authority, by way of Return, on an annual basis. The Return is made
by submitting a form FSA057. The Return includes details of the payment services
provided by the SPI in the preceding year.
10.
The Firm submitted a Return (covering the period 1 January to 31 December) for each of
the years it has been registered. For the years 2016, 2017 and 2018, the Firm submitted
Returns showing that it was providing payment services. For the years 2019, 2020, 2021,
2022 and 2023, the Firm reported having undertaken no payment transactions, nor any
other business. This is consistent with its filed accounts at Companies House, which show
it was dormant for the years ending 31 December 2021 and 2022.
2
11.
On 25 March 2020, the Firm underwent a change in control. The Firm then underwent
another change in control on 20 November 2023. Throughout this period, the Firm did
not provide any payment services. Since its most recent change in control, the Firm has
still not provided any payment services. The Authority considers that firms that are not
using their permissions should apply to cancel them and not seek to sell them on.
12.
Between 15 September 2023 and 11 October 2023, the Authority corresponded with the
Firm with respect to its failure to provide payment services. The Firm advised that it had
initiated its operations and the Authority agreed to place its action on hold, to allow the
Firm some time to commence providing payment services.
13.
On 20 March 2024, the Authority emailed the Firm to inform it that based on its recent
Return, submitted on 20 February 2024, the Authority would be proceeding with
enforcement action against the Firm. The Authority invited the Firm to provide evidence
that it had commenced providing payment services by 27 March 2024. The Firm failed to
respond.
14.
Through the Warning Notice, the Authority gave notice that it proposed to take the action
described above and the Firm was given the opportunity to make representations to the
Authority about that proposed action.
15.
No representations having been received by the Authority from the Firm within the time
allowed by the Warning Notice, the default procedures in DEPP 2.3.2G permit the
matters/allegations described in the Warning Notice and Decision Notice, and repeated
in this Final Notice, to be regarded as undisputed.
16.
The Authority has therefore decided to cancel the Firm’s registration for the reasons
described above.
REASONS FOR THE ACTION
17.
The Authority has concluded that, on the basis of the facts and matters described above,
the Firm has not provided payment services since 2018. The Authority has therefore
concluded that the Firm does not require its registration and that its registration as a SPI
should be cancelled in order to protect the interests of consumers, in accordance with
regulation 10(1)(h) (as applied by regulation 15) of the PSRs.
18.
The Authority has therefore cancelled the Firm’s registration as a SPI for the reasons
described above.
REPRESENTATIONS
19.
The Firm has made no representations in respect to the matters that relate to this Final
Notice.
PROCEDURAL MATTERS
20.
This Final Notice is given to the Firm in accordance with section 390(1) of the Act (as
applied by paragraph 10 of Schedule 6 of the PSR’s).
Decision maker
3
21.
The decision which gave rise to the obligation to give this Final Notice was made by an
Authority staff member under the executive procedures.
22.
Sections 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 10 of Schedule
6 of the PSRs) apply to the publication of information about the matter to which this Final
Notice relates. Under those provisions, 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 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 the Firm or prejudicial to the interests of
consumers.
23.
The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.
24.
For more information concerning this matter generally, the Firm should contact Toby
Hiscock at the Authority (direct line: 020 7066 0918).
Angela Curtis
Enforcement and Market Oversight Division
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.
Regulation 15 of the PSRs provides:
“Regulations 7 to 12 apply to registration as a small payment institution as they apply
to authorisation as a payment institution as if—
(a) references to authorisation were references to registration;
[…].”
3.
Under Regulation 10(1)(h) of the PSRs (as applied by Regulation 15), the Authority may
cancel the registration of a SPI where the cancellation is desirable in order to protect the
interests of consumers.
RELEVANT HANDBOOK PROVISIONS
4.
In exercising its powers to cancel the registration of a SPI, the Authority must have regard
to guidance published in the Handbook and in regulatory guides, such as EG. The main
considerations relevant to the action stated in the Final Notice are set out below.
5.
The Authority’s policy in relation to exercising its enforcement powers is set out in EG,
the relevant provisions of which are summarised below.
6.
EG 19.20.2 provides that the Authority’s approach to enforcing the PSRs will mirror its
general approach to enforcing the Act.
7.
EG 19.20.5 provides that, in relation to the PSRs, the Authority 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.
5
To:
Leeds Money Transfer Ltd
Address:
10A The Crescent, Hyde Park, Leeds, LS6 2NW
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following
action.
2.
The Authority issued the Firm with the Decision Notice which notified it that for the
reasons given below and pursuant to regulation 10(1)(h) (as applied by regulation 15) of
the PSRs, the Authority has decided to cancel the Firm’s registration as a SPI.
3.
The Firm 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 the registration granted to the Firm, as a
SPI, under the PSRs.
SUMMARY OF REASONS
5.
The Authority has concluded, on the basis of the facts and matters set out below, that
the Firm no longer requires its registration. The Authority therefore considers that it is
desirable to cancel the Firm’s registration as a SPI in order to protect the interests of
consumers, in accordance with Regulation 10(1)(h) (as applied by regulation 15) of the
PSRs.
DEFINITIONS
6.
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 given to Leeds Money Transfer Ltd dated
28 June 2024;
“DEPP” means the Authority’s Decision Procedure and Penalties manual;
“EG” means the Authority’s Enforcement Guide;
“the Firm” means Leeds Money Transfer Ltd;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the PSRs” means the Payment Services Regulations 2017;
“Returns” means annual regulatory report submitted by a SPI to the Authority using form
FSA057;
SPI means “Small Payment Institution” as defined in Regulation 2(1) of the PSRs;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the warning notice given to Leeds Money Transfer Ltd dated
20 May 2024.
RELEVANT STATUTORY PROVISIONS
7.
The statutory and regulatory provisions relevant to this Final Notice are set out in the
Annex.
FACTS AND MATTERS
8.
On 21 October 2015, the Firm was registered by the Authority. In 2018, the Firm was
required to re-register with the Authority following the introduction of the PSRs. The Firm
was re-registered by the Authority as a SPI on 23 November 2018.
9.
SPIs are required by rules made by the Authority under the PSRs to report certain
information to the Authority, by way of Return, on an annual basis. The Return is made
by submitting a form FSA057. The Return includes details of the payment services
provided by the SPI in the preceding year.
10.
The Firm submitted a Return (covering the period 1 January to 31 December) for each of
the years it has been registered. For the years 2016, 2017 and 2018, the Firm submitted
Returns showing that it was providing payment services. For the years 2019, 2020, 2021,
2022 and 2023, the Firm reported having undertaken no payment transactions, nor any
other business. This is consistent with its filed accounts at Companies House, which show
it was dormant for the years ending 31 December 2021 and 2022.
2
11.
On 25 March 2020, the Firm underwent a change in control. The Firm then underwent
another change in control on 20 November 2023. Throughout this period, the Firm did
not provide any payment services. Since its most recent change in control, the Firm has
still not provided any payment services. The Authority considers that firms that are not
using their permissions should apply to cancel them and not seek to sell them on.
12.
Between 15 September 2023 and 11 October 2023, the Authority corresponded with the
Firm with respect to its failure to provide payment services. The Firm advised that it had
initiated its operations and the Authority agreed to place its action on hold, to allow the
Firm some time to commence providing payment services.
13.
On 20 March 2024, the Authority emailed the Firm to inform it that based on its recent
Return, submitted on 20 February 2024, the Authority would be proceeding with
enforcement action against the Firm. The Authority invited the Firm to provide evidence
that it had commenced providing payment services by 27 March 2024. The Firm failed to
respond.
14.
Through the Warning Notice, the Authority gave notice that it proposed to take the action
described above and the Firm was given the opportunity to make representations to the
Authority about that proposed action.
15.
No representations having been received by the Authority from the Firm within the time
allowed by the Warning Notice, the default procedures in DEPP 2.3.2G permit the
matters/allegations described in the Warning Notice and Decision Notice, and repeated
in this Final Notice, to be regarded as undisputed.
16.
The Authority has therefore decided to cancel the Firm’s registration for the reasons
described above.
REASONS FOR THE ACTION
17.
The Authority has concluded that, on the basis of the facts and matters described above,
the Firm has not provided payment services since 2018. The Authority has therefore
concluded that the Firm does not require its registration and that its registration as a SPI
should be cancelled in order to protect the interests of consumers, in accordance with
regulation 10(1)(h) (as applied by regulation 15) of the PSRs.
18.
The Authority has therefore cancelled the Firm’s registration as a SPI for the reasons
described above.
REPRESENTATIONS
19.
The Firm has made no representations in respect to the matters that relate to this Final
Notice.
PROCEDURAL MATTERS
20.
This Final Notice is given to the Firm in accordance with section 390(1) of the Act (as
applied by paragraph 10 of Schedule 6 of the PSR’s).
Decision maker
3
21.
The decision which gave rise to the obligation to give this Final Notice was made by an
Authority staff member under the executive procedures.
22.
Sections 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 10 of Schedule
6 of the PSRs) apply to the publication of information about the matter to which this Final
Notice relates. Under those provisions, 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 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 the Firm or prejudicial to the interests of
consumers.
23.
The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.
24.
For more information concerning this matter generally, the Firm should contact Toby
Hiscock at the Authority (direct line: 020 7066 0918).
Angela Curtis
Enforcement and Market Oversight Division
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.
Regulation 15 of the PSRs provides:
“Regulations 7 to 12 apply to registration as a small payment institution as they apply
to authorisation as a payment institution as if—
(a) references to authorisation were references to registration;
[…].”
3.
Under Regulation 10(1)(h) of the PSRs (as applied by Regulation 15), the Authority may
cancel the registration of a SPI where the cancellation is desirable in order to protect the
interests of consumers.
RELEVANT HANDBOOK PROVISIONS
4.
In exercising its powers to cancel the registration of a SPI, the Authority must have regard
to guidance published in the Handbook and in regulatory guides, such as EG. The main
considerations relevant to the action stated in the Final Notice are set out below.
5.
The Authority’s policy in relation to exercising its enforcement powers is set out in EG,
the relevant provisions of which are summarised below.
6.
EG 19.20.2 provides that the Authority’s approach to enforcing the PSRs will mirror its
general approach to enforcing the Act.
7.
EG 19.20.5 provides that, in relation to the PSRs, the Authority 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.
5