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FINAL NOTICE

To:

Metlife Ltd

ACTION

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

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

3.
Metlife 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 Metlife’s Part 4A permission.

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 appropriate resources Threshold Condition” means the threshold condition set
out in paragraph 2D of Schedule 6 to the Act;

“the Authority” means the Financial Conduct Authority;

“the Decision Notice” means the Decision Notice issued to Metlife on 30 April 2018;

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“DEPP” means the Authority’s Decision Procedure and Penalties manual;

“EG” means the Authority’s Enforcement Guide;

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

“Metlife” means Metlife Ltd;

“Metlife’s Part 4A permission” means the permission granted by the Authority to
Metlife pursuant to Part 4A of the Act;

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

“the RDC” means the Authority’s Regulatory Decisions Committee;

“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 given to Metlife dated 5 April 2018.

RELEVANT STATUTORY PROVISIONS

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


REASONS FOR THE ACTION

No regulated activities

7.
By a First Supervisory Notice dated 5 April 2018, Metlife’s Part 4A permission was
varied by removing all regulated activities with immediate effect, on the basis that
Metlife is failing to satisfy the Threshold Conditions. Specifically, Metlife does not
meet the requirements of the appropriate resources Threshold Condition and is also
in breach of Principle 4 (Financial prudence) of the Principles.


8.
Section 55J(8) of the Act provides that, if, as a result of a variation of a Part 4A
permission under section 55J, there are no longer any regulated activities for which
the authorised person concerned has permission, the Authority must, once it is
satisfied that it is no longer necessary to keep the permission in force, cancel it.


9.
The Authority has concluded that it is so satisfied and accordingly has a duty to
cancel Metlife’s Part 4A permission.

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 Metlife in accordance with section 390(1) of the Act.

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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 information would, in the opinion of the Authority, be unfair
to Metlife 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.

14.
For more information concerning this matter generally, Metlife should contact
Sheena Baldev at the Authority (direct line: 0207 066 6760).

Anna Couzens
Enforcement and Market Oversight Division



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 an authorised person’s

Part 4A permission, where it appears to the Authority that such a person is failing to
satisfy the Threshold Conditions.

OTHER RELEVANT REGULATORY PROVISIONS

3.
The Authority’s policy in relation to its enforcement powers is set out in EG,
certain provisions of which are summarised below.

Cancelling a firm’s Part 4A permission on the Authority’s own initiative

4.
EG 8.1.1(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.


5.
EG 8.5.3 states that, the Authority may need to consider whether it should first
use its own-initiative powers to vary a firm’s Part 4A permission before going on
to cancel it. Amongst other circumstances, the Authority may use this power
where it considers it needs to take immediate action against a firm because of the
urgency and seriousness of the situation.

6.
8.5.4 specifies that where this situation occurs, the Authority may first vary the
firm’s Part 4A permission so that there is no longer any regulated activity for
which the firm has a Part 4A permission. If it does this, the Authority then has a
duty to cancel the firm’s Part 4A permission, once it is satisfied that it no longer
necessary to keep the Part 4A permission in force.