FIRST SUPERVISORY NOTICE

To:

Nasreen Begum Hussain trading as My Insurance Solutions

Of:

6 Rawson Place


Bradford


West Yorkshire


BD1 3QQ

FSA Reference


Number:

499794


ACTION

1.
For the reasons listed below and pursuant to section 45 of the Financial Services and
Markets Act 2000 (the “Act”), the FSA has decided to vary the permission granted to
Nasreen Begum Hussain trading as My Insurance Solutions (“Mrs Hussain”) pursuant
to Part IV of the Act (“Mrs Hussain’s Part IV permission”), by removing all of her
regulated activities with immediate effect. Accordingly, Mrs Hussain’s Part IV
permission no longer includes the regulated activities of:

(a)
Advising on investments (except on Pension Transfers and Pension Opt Outs);

(b)
Agreeing to carry on a regulated activity;

(c)
Arranging (bringing about) deals in investments;

(d)
Assisting in the administration and performance of a contract of insurance;

(e)
Dealing in investments as agent; and

(f)
Making arrangements with a view to transactions in investments.

2.
The FSA has further decided to vary Mrs Hussain’s Part IV permission by imposing
the following requirements, pursuant to section 43 of the Act, namely that Mrs
Hussain:

(a)
may not hold or control client money;

(b)
must within 14 days notify in writing all clients for her regulated activities that
she is no longer permitted by the FSA to carry on regulated activities; and

(c)
must within 14 days provide the FSA with a copy of the written notification sent
to all clients for her regulated activities pursuant to (b) above, together with a list
of all clients to whom such notification has been sent.

REASONS FOR ACTION

3.
On the basis of the facts and matters described below, Mrs Hussain is failing to satisfy
the threshold conditions set out in Schedule 6 to the Act (the "Threshold Conditions").
In the opinion of the FSA, Mrs Hussain has failed to:

(a)
satisfy the FSA that she is fit and proper to conduct regulated activities as she
has failed to demonstrate that she as the authorised sole trader has day to day
control of the business which is using her authorisation;

(b)
satisfy the FSA that her firm has competent and prudent management in that she
has failed to demonstrate that she understands the FSA’s requirements in relation
to her business; and

(c)
Mrs Hussain’s firm appears to be being managed and controlled by other
individuals.

FACTS AND MATTERS RELIED ON

4.
Mrs Hussain was granted authorisation as a sole trader by the FSA on 4 June 2009 to
conduct insurance mediation business.

5.
Mrs Hussain has failed to demonstrate that she has day to day control of the business
which is using her authorisation, or that she understands the FSA’s requirements in
relation to her business.

6.
Mrs Hussain is not acting as the principal of her sole trader firm, is not in day to day
control of her business, and her firm appears to be managed and controlled by other
individuals.

7.
Mrs Hussain has failed to co-operate with the FSA in that she failed to respond
adequately, or at all, to repeated requests from the FSA to provide information to the
FSA confirming that she fully understands and is aware of the regulatory obligations
and requirements in relation to her firm.

FAILINGS

8.
The regulatory provisions relevant to this First Supervisory Notice are set out in the
Annex.

9.
From the facts and matters described above the FSA, having regard to its regulatory

objectives, has reached the following conclusions:

• Mrs Hussain is failing to satisfy Threshold Condition 5 (Suitability) as the FSA is
not satisfied that she is fit and proper to conduct regulated activities. Specifically,
Mrs Hussain’s firm does not have a competent and prudent management;

• the information available to the FSA regarding Mrs Hussain’s failure to
understand the regulatory requirements applicable to, or exercise control over, her
business, causes the FSA to have very serious concerns about Mrs Hussain and
her business which need to be addressed immediately, such that the exercise of the
FSA’s own-initiative power to vary Mrs Hussain’s Part IV permission with
immediate effect is an appropriate and reasonable response to those concerns;

• Mrs Hussain has failed to comply with Principle 11 in that she has not been open
and co-operative in all her dealings with the FSA, namely by failing to respond
appropriately, or at all, to the FSA’s repeated requests that she provide
confirmation that she understands and is aware of the regulatory obligations and
requirements in relation to her firm;

• by failing to comply with Principle 11, Mrs Hussain has failed to satisfy the FSA
that she is ready, willing and organised to comply with the requirements and
standards under the regulatory system;

• Mrs Hussain has therefore failed to satisfy the FSA that she is conducting her
business soundly and prudently and in compliance with proper standards or that
she is a fit and proper person having regard to all the circumstances (and those
failures are significant in the context of her suitability to remain authorised); and

• Mrs Hussain is therefore failing to satisfy the Threshold Conditions in relation to
her permitted regulated activities, and it is desirable to exercise the FSA’s own
initiative power to vary Mrs Hussain’s Part IV permission with immediate effect,
and to add the requirements referred to at paragraph 2 of this First Supervisory
Notice; and

• specifically, the variation of Mrs Hussain’s Part IV permission should take
immediate effect to address the FSA’s serious concern that Mrs Hussain’s firm
does not have a competent and prudent management.







PROCEDURAL MATTERS

Decision Maker

10.
The decision which gave rise to the obligation to give this First Supervisory Notice was

made by the Deputy Chairman of the Regulatory Decisions Committee.

11.
This First Supervisory Notice is given to Mrs Hussain under section 53(4) and in
accordance with section 53(5) of the Act, and is being served on Mrs Hussain at her
place of business as last notified to the FSA. The following statutory rights are
important.

The Tribunal

12.
Mrs Hussain has the right to refer the matter to which this First Supervisory Notice
relates to the Upper Tribunal (the “Tribunal”). The Tax and Chancery Chamber is the
part of the Tribunal which, amongst other things, hears references arising from
decisions of the FSA. Under paragraph 2(2) of Schedule 3 of the Tribunal Procedure
(Upper Tribunal) Rules 2008, Mrs Hussain has 28 days from the date on which this
First Supervisory Notice is given to her to refer the matter to the Tribunal.

13.
A reference to the Tribunal can be made by way of a reference notice (Form FTC3)
signed by Mrs Hussain and filed with a copy of this First Supervisory Notice. The
Tribunal’s contact details are: The Upper Tribunal, Tax and Chancery Chamber, 45
Bedford Square, London WC1B 3DN (telephone: 020 7612 9700; email:
financeandtaxappeals@tribunals.gsi.gov.uk).

14.
Further details are contained in “Making a Reference to the UPPER TRIBUNAL (Tax

and Chancery Chamber)” which is available from the Tribunal website:

15.
Mrs Hussain should note that a copy of the reference notice (Form FTC3) must also be
sent to the FSA at the same time as filing a reference with the Tribunal. A copy of the
reference notice should be sent to Alexander Banerjea at the FSA, 25 The North
Colonnade, Canary Wharf, London E14 5HS.

Representations

16.
Mrs Hussain has the right to make written and oral representations to the FSA (whether
or not she refers this matter to the Tribunal). If Mrs Hussain wishes to make written
representations she must do so by 6 August 2012 or such later date as may be permitted
by the FSA. Written representations should be made to the Regulatory Decisions
Committee and sent to Philip Bellars, Regulatory Decisions Committee Professional
Support Services. The Regulatory Decisions Committee Professional Support Services'
address is: 25 The North Colonnade, Canary Wharf, London E14 5HS. If Mrs Hussain
wishes to make oral representations, she should inform the FSA of her intention to do
so by 16 July 2012. If Mrs Hussain does not notify the FSA by 16 July 2012, she will
not, other than in exceptional circumstances, be able to make oral representations.

17.
Mrs Hussain should note that section 391 of the Act requires the FSA when the First
Supervisory Notice takes effect (and this First Supervisory Notice takes immediate
effect), to publish such information about the matter as it considers appropriate.

FSA contacts

18.
For more information concerning this matter generally, Mrs Hussain should contact
Alexander Banerjea at the FSA (direct line: 020 7066 7206 / fax: 020 7066 7207).

19.
If Mrs Hussain has any questions regarding the procedures of the Regulatory Decisions
Committee, she should contact Philip Bellars (direct line: 020 7066 2894).

Martin Hagen
Deputy Chairman, Regulatory Decisions Committee


ANNEX TO THE FIRST SUPERVISORY NOTICE ISSUED BY THE FINANCIAL
SERVICES AUTHORITY TO NASREEN BEGUM HUSSAIN TRADING AS MY
INSURANCE SOLUTIONS ON 3 JULY 2012


RELEVANT STATUTORY PROVISIONS

1.
The FSA’s regulatory objectives established in section 2(2) of the Act include the

protection of consumers.

2.
The FSA is authorised by section 45 of the Act to exercise the following powers:

• to vary an authorised person’s permission where it appears to the FSA that
such person is failing to satisfy the Threshold Conditions;

• to vary an authorised person’s permission where it is desirable to do so to
protect the interests of consumers;

• to vary such a permission by removing a regulated activity from those for
which the permission is given; and

• to include any provision in the permission as varied that could be included if a
fresh permission were being given in response to an application under section
40 of the Act, including the imposition pursuant to section 43(1) of the Act of
such requirements as the FSA considers appropriate.

3.
Section 43(2) of the Act states that a requirement may be imposed to require the person
concerned to take, or refrain from taking, specified action.

4.
Section 43(3) of the Act states that a requirement may extend to activities which are
not regulated activities.

5.
Section 53(3) of the Act allows such a variation to take effect immediately if the FSA

reasonably considers that it is necessary for the variation to take effect immediately.

6.
Paragraph 5 of Schedule 6 to the Act sets out Threshold Condition 5 which provides

that:

“The person concerned must satisfy the Authority that he is a fit and proper


person having regard to all the circumstances, including-

(b)
the nature of any regulated activity that he carries on or seeks to carry
on; and

(c)
the need to ensure that his affairs are conducted soundly and
prudently.”

RELEVANT HANDBOOK PROVISIONS

7.
In exercising its power to vary a Part IV permission, the FSA must have regard to

relevant provisions in the FSA Handbook of Rules and Guidance (the "Handbook").

The main provisions relevant to the action specified above are set out below.

8.
Principle 11 (Relations with regulators) requires a firm to deal with its regulator in an

open and co-operative way, and to disclose to the FSA appropriately anything relating

to the firm of which the FSA would reasonably expect notice.

Guidance concerning the relevant Threshold Condition

9.
Guidance on Threshold Condition 5 is set out in Chapter 2.5 of the Part of the

Handbook entitled Threshold Conditions (“COND”).

Guidance concerning - Threshold Condition 5: Suitability (paragraph 5, Schedule 6 to
the Act)

10.
COND 2.5.1UK reproduces the relevant statutory provision that the person concerned

must satisfy the FSA that he is a fit and proper person having regard to all the

circumstances, including, among other things, the need to ensure that his affairs are

conducted soundly and prudently.

11.
COND 2.5.4G(2)(b) provides that in determining whether a firm will satisfy and
continue to satisfy Threshold Condition 5, the FSA will have regard to all relevant
matters, including whether a firm has a competent and prudent management.

12.
COND 2.5.4G(3) states that the FSA will take into account relevant matters only to the

extent that they are significant in the context of the suitability of the firm.

13.
COND 2.5.6G(1) permits the FSA, when forming its opinion as to whether a firm is

conducting its business with integrity and in compliance with proper standards, to

have regard to relevant matters, including whether:

• the firm has been open and co-operative in all its dealings with the FSA
and is ready and willing to comply with the requirements and standards
under the regulatory system and other legal obligations; and

• the firm has contravened, among other things, the requirements of the
regulatory system, which include the Threshold Conditions, the FSA
Principles and other rules.

14.
COND 2.5.7G(3) permits the FSA, when determining whether a firm has competent
and prudent management, to have regard to relevant matters, including whether the
governing body of the firm is made up of individuals with an appropriate range of
skills and experience to understand, operate and manage the firm's regulated
activities.


OTHER RELEVANT REGULATORY PROVISIONS

15.
The FSA's policy in relation to its enforcement powers is set out in the Enforcement

Guide (EG), certain provisions of which are summarised below.

16.
EG 8.1(1) reflects the provisions of section 45 of the Act that the FSA may use its

own-initiative power to vary or cancel the permission of an authorised firm where a

firm is failing or is likely to fail to satisfy the Threshold Conditions.

Varying a firm’s Part IV permission on the FSA’s own-initiative

17.
EG 8.1B provides that the FSA will have regard to its regulatory objectives and the

range of regulatory tools that are available to it, when it considers how it should deal

with a concern about a firm.

18.
EG 8.3 provides that the FSA will exercise its formal powers under section 45 of the

Act, where the FSA considers it is appropriate to ensure a firm meets its regulatory

requirements. EG 8.3(1) specifies that the FSA may consider it appropriate to exercise

its powers where it has serious concerns about a firm or the way its business is being or

has been conducted.

19.
EG 8.5 provides examples of the circumstances in which the FSA will consider using
its power to vary a permission, including where the firm appears to be failing, or
appears to be likely to fail, to satisfy the threshold conditions because, for instance, the
firm appears not to be a fit and proper person to carry on a regulated activity.

20.
Examples given at EG 8.5(1)(b) of circumstances where a firm appears not to be fit and
proper to carry on a regulated activity, include where:

1)
a firm has not been managed competently and prudently and has not exercised

due skill, care, and diligence in carrying on one or more, or all, of its regulated

activities (EG 8.5(1)(b)(ii)); and

2)
where it has breached requirements imposed on it by or under the Act
(including the Principles and the rules) and the breaches are material in
number or in individual seriousness (EG 8.5(1)(b)(iii)).

Use of the own-initiative power in urgent cases

21.
EG 8.6 states that the FSA may impose a variation of permission so that it takes effect
immediately or on a specified date if it reasonably considers it necessary for the
variation to take effect immediately (or on the date specified), having regard to the
ground on which it is exercising its own-initiative power.

22.
EG 8.7 provides the circumstances in which the FSA will consider exercising its own
initiative power as a matter of urgency, including where the information available to it
indicates serious concerns about the firm or its business that need to be addressed
immediately (EG 8.7(1)).

23.
EG 8.8 provides a list of situations which will give rise to such serious concerns.
Specifically, EG 8.8(4) includes where circumstances suggest a serious problem within

a firm or with a firm’s controllers that call into question the firm’s ability to continue to
meet the threshold conditions.

24.
EG 8.9 sets out the factors the FSA may consider in addition to the full circumstances
of each case when it decides whether an urgent variation of Part IV permission is
appropriate. In particular, EG 8.9(1) states a factor is the extent of any loss, or risk of
loss, or other adverse effect on consumers, and EG 8.9(8) states that the FSA may
consider the firm’s conduct once a particular issue has been identified, including any
steps that the firm has taken to address the issue and its past history, management ethos
and compliance culture.