FINAL NOTICE

ACTION

1.
By an application dated 4 January 2011 (“the Application”) Mr Moinul Islam
(“Mr Islam”) applied under Regulation 12 of the Payment Services Regulations 2009
(“the PSRs”) for registration as a small payment institution and to perform the
following payment services:

(1)
Money Remittance

2.
The Application is incomplete.

3.
For the reasons listed below and pursuant to Regulation 13 of the PSRs, the FSA has
refused the Application.

SUMMARY OF REASONS

4.
By its Warning Notice dated 29 February 2012 (“the Warning Notice”) issued
pursuant to Regulation 9(7) of the PSRs, (as modified by Regulation 14), the FSA
gave notice that it proposed to refuse the Application and that Mr Islam was entitled
to make representations to the FSA about that proposed action.

5.
As no representations have been received by the FSA from Mr Islam within the time
allowed by the Warning Notice, the default procedures in paragraph 2.3.2 of the
FSA’s Decision Procedure and Penalties Manual apply, permitting the FSA to treat
the matters referred to in its Warning Notice as undisputed.

6.
By its Decision Notice dated 3 April 2012 ("the Decision Notice"), the FSA gave
Mr Islam notice that it had decided to take the action described above.

7.
Under section 133(1) of the Act, Mr Islam had 28 days from the date the Decision
Notice was given to refer the matter to the Upper Tribunal (formerly known as the
Financial Services and Markets Tribunal). No referral was made to the Upper
Tribunal within this period of time or to date.

8.
Under section 390(1) of the Act, the FSA, having decided to refuse the Application
and there having been no reference of that decision to the Tribunal, must give Mr
Islam Final Notice of its refusal.

9.
The FSA decided to refuse the Application and to give this Final Notice as Mr Islam
has failed to provide the information required by the FSA, and the FSA has
accordingly concluded that Mr Islam does not meet the ‘Conditions for registration
as a small payment institution’ set out in Regulation 13 of the PSRs on the basis that
Mr Islam has failed to demonstrate that his head office, registered office or place of
residence, is in the United Kingdom.

DEFINITIONS

10. The definitions below are used in this Final Notice.

“the PSRs” means the Payment Services Regulations 2009

“the FSA” means the Financial Services Authority

“the Act” means the Financial Services and Markets Act 2000 (as modified and
applied by the PSRs)

FACTS AND MATTERS

11. The Application for registration as a small payment institution, made under the PSRs,
was received on 11 January 2011.

12. On 31 May 2011 Mr Islam sent an email to the FSA by which he advised, “I have
changed my business details now so please can you send ALL correspondence to the
new address” and gave the details set out at the head of this Decision Notice. On 1
June 2011 Mr Islam sent an email to the FSA by which he sought confirmation that

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“the change of contact details [had] been noted”. The FSA duly processed this
request for a change of correspondence address.

13. Further information was requested from Mr Islam to complete the Application but the
applicant has not responded. Details of all the communications between the FSA and
Mr Islam are set out below:

(1)
On 3 June 2011 the FSA sent an email to the email address provided by
Mr Islam in the Application and also to the email address from which he sent
the emails referred to in paragraph 12 above. By this email the FSA
acknowledged receipt of the Application and the fee. The email requested
additional information from Mr Islam in respect of a number of matters,
including:

a. his business;

b. his fraud management procedures;

c. his complaints procedures;

d. whether Mr Islam intended to opt in to the safeguarding provision for client
funds (Mr Islam did not indicate in the Application whether he planned to
opt in for safeguarding); and

e. the correct financial year end date

(2)
On 19 July 2011 the FSA sent a further email (attaching a copy of the email
dated 3 June 2011) to Mr Islam informing him that the FSA was still
awaiting a full response to the questions that had been asked on 3 June 2011
and that, in the absence of a full response to the email and/or subsequent
attempts to contact him, the FSA would continue to determine the application
on the limited information provided and would be minded to refuse the
application and issue a Warning Notice. The FSA received no response.

(3)
Having received no response to its earlier email, on 19 August 2011 the FSA
sent a letter to the postal address provided in the email dated 31 May 2011. In
that letter the FSA:

a. referred to its outstanding queries sent by email of 3 June 2011, to which it
stated a response was required;

b. noted that the FSA is required to determine an incomplete application within
12 months of its receipt;

c. stated that, in the absence of a full response to the outstanding queries, the
FSA would recommend that the Application be refused; and

d. stated that a refusal of the Application would result in the issuing of a
Warning Notice, on which Mr Islam would be entitled to make
representations.

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(4) On the same date the FSA tried to contact the applicant on the telephone
number provided. An automated response stated that the number was not in
service.

(5)
No further correspondence was received from Mr Islam and on 10 November
2011 the FSA sent Mr Islam another letter in which it:

a. referred to its outstanding queries;

b. noted that the FSA is required to determine an incomplete application within
12 months of its receipt;

c. stated that, in the absence of a full response to the outstanding queries, the
FSA would determine the Application on the basis of the incomplete
information provided;

d. noted that Mr Islam’s failure to respond to the FSA’s queries raised
significant doubts as to the accuracy of the address/contact details provided
to the FSA in the Application;

e. noted the FSA’s view that Mr Islam had not demonstrated his compliance
with regulation 13(5) of the PSRs; and

f. stated that, in light of the above matters, the FSA would look to recommend
refusal of the Application, which would result in the issuing of a Warning
Notice if the recommendation was accepted by the decision-maker.

(6)
No response having been received, on 9 January 2012 the FSA sent Mr Islam
another letter in which it:

a.
referred to its outstanding queries;

b. noted that the FSA is required to determine an incomplete application
within 12 months of its receipt;

c.
stated that, in the absence of a full response to the outstanding queries, the
FSA would determine the Application on the basis of the incomplete
information provided;

d. noted that Mr Islam’s failure to respond to the FSA’s queries raised
significant doubts as to the accuracy of the address/contact details provided
to the FSA in the Application;

e.
noted the FSA’s view that Mr Islam had not demonstrated his compliance
with regulation 13(5) of the PSRs; and

f.
stated that, in light of the above matters, the FSA would look to recommend
refusal of the Application, which would result in the issuing of a Warning
Notice if the recommendation was accepted by the decision-maker.

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14. The Warning Notice was issued to Mr Islam on 29 February 2012. This was returned
to the FSA on 23 May 2012 marked as ‘not called for’.

15. As at the date of this Final Notice, the FSA has not received any response
(substantive or at all) to any of the communications set out above.

CONCLUSIONS

16. Pursuant to Regulation 13(1) of the PSRs the FSA may refuse an application for
registration as a small payment institution if any of the conditions in paragraphs (2) –
(6) of Regulation 13 are not met. The Regulations and FSA guidance relevant to this
Final Notice are referred to in Annex A.

17. The FSA considers that an applicant’s head office is the location of the firm's central
management and control, which includes the directors and other senior management
and central administrative functions of the firm.

18. On the basis of the facts and matters described above, Mr Islam has failed to respond
to the FSA’s questions. Mr Islam’s failure to respond to the FSA’s questions raises
significant doubts that the address/contact details provided are accurate and that
Mr Islam’s central management, administrative functions and head office are in the
UK.

19. Mr Islam has therefore failed to meet the condition in Regulation 13(5) that requires
that the applicant’s “head office, registered office or place of residence, as the case
may be, must be in the United Kingdom”.

IMPORTANT NOTICES

20. This Final Notice is given to Mr Islam pursuant to Schedule 5 Part 1 (7) of the PSRs
(which incorporates section 390(1) of the Act).

21. Sections 391(4), 391(6) and 391(7) of the Act 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 the 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 Mr Islam or
prejudicial to the interests of consumers.

FSA contacts

22. For more information concerning this matter generally, contact Jonathan
Bromberger, Manager, PSD Department at the FSA (direct line: 020 7066 9080
/email: jonathan.bromberger@fsa.gov.uk.

Val Smith
on behalf of the Regulatory Transactions Committee

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ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL NOTICE

The Payment Services Regulations 2009

1. Regulation 9(2) of the PSRs (as applied by regulation 14 to applications for
registration as an SPI) provides that “[t]he Authority may determine an incomplete
application if it considers it appropriate to do so, and it must in any event determine
any such application within 12 months beginning with the date on which it received
the application”.

2. Regulation 12(1) requires an application for registration as a small payment institution
to contain, or be accompanied by, the information required by the FSA.

3. Regulation 12(4) states that at any time after receiving an application and before
determining it, the FSA may require the applicant to provide it with such further
information as it reasonably considers necessary to enable it to determine the
application.

4. Regulation 13(1) states that the FSA may refuse to register an applicant as a small
payment institution only if any of the conditions set out in paragraphs (2) to (6) are
not met.

5. Regulation 13(2) states that the application must comply with the requirements of,
and any requirements imposed under, regulation 12.

6. Regulation 13(5) requires that the applicant’s head office or place of residence, as the
case may be, must be in the United Kingdom.

7. Regulation 14 provides for regulations 7 to 11 to apply to registration as an SPI as
they apply to authorisation as a payment institution (subject to certain modifications).

8. Schedule 5, Part 1 (7) states that Part 26 of the Act applies save for the modifications
detailed.

Financial Services and Markets Act 2000

9. Part 26 section 390(1) states that if the FSA has given a person a Decision Notice and
the matter was not referred to a Tribunal within the time required by the Tribunal
Procedure Rules, the FSA must give the person concerned a Final Notice.

10. Part 26 section 391(4) states that the FSA must publish such information about the
matter to which a final notice relates as it considers appropriate.

11. Part 26 section 391(6) states that the FSA may not publish information if publication
would, in its opinion, be unfair to the person with respect to whom the action was
taken or prejudicial to the interests of consumers.

12. Part 26 section 391(7) states that information is to be published in such a manner as
the FSA considers appropriate.

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“The FSA’s role under the Payment Services Regulations 2009 – Our approach”

13. In exercising its powers in relation to the approval of an application for registration as
a small payment institution, the FSA must have regard to guidance published in the
FSA’s ‘Our approach’ document, including the section titled ‘Authorisation and
registration’. The version of the ‘Our approach’ document current at the date of the
application was dated May 2010.

14. The paragraphs relevant to the refusal of the Application are set out below (references
to ‘we’ are references to the FSA).

15. Paragraph 3.7: At any time after receiving an application for authorisation or
registration (or a variation of either of these) and before determining it, we can require
the applicant to provide such further information as we reasonably consider necessary
to enable us to determine the application

16. Paragraph 3.91: The location of the head office, registered office, or principal place of
business is to be supplied as part of the contact details.

17. Paragraph 3.97: We have to make a decision on a complete application within three
months of receiving it. An application is complete when we have received all the
information and evidence needed for us to make a decision. We will let the applicant
know if we need more information.

18. Paragraph 3.98: In the case of an incomplete application, we must make a decision
within 12 months of receipt. However, if that date is reached and discussions with the
firm have not resulted in us receiving all the information we need to make our
decision, it is likely that an incomplete application will result in a refusal. This is
because it is unlikely we will have been able to satisfy ourselves that the applicant has
met the authorisation/registration requirements.

19. Paragraph 3.105: We can refuse an application when the information and evidence
provided does not satisfy the requirements of the PSRs. When this happens we are
required to give the applicant a Warning Notice setting out the reason for refusing the
application and allowing 28 days to make a representation on the decision.

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