FINAL NOTICE

Dated: 31 May 2012

ACTION

1. For the reasons set out in this Final Notice, the Financial Services Authority (the “FSA”)
hereby takes the following action against Prime Choice Mortgages Limited.

2. The FSA gave Prime Choice Mortgages Limited a Decision Notice on 25 April 2012 (the
“Decision Notice”) which notified it that for the reasons given below and pursuant to
section 45 of the Financial Services and Markets Act 2000 (the “Act”), the FSA had
decided to cancel the permission granted to Prime Choice Mortgages Limited under Part
IV of the Act (“Prime Choice Mortgages Limited’s Part IV permission”).

3. Prime Choice Mortgages Limited has not referred the matter to the Upper Tribunal (Tax
and Chancery Chamber) within 28 days of the date on which the Decision Notice was
given to it.

4. Accordingly, the FSA has today cancelled Prime Choice Mortgages Limited’s Part IV
permission.

REASONS FOR ACTION

5. On the basis of the facts and matters and conclusions described in its Warning Notice
issued to Prime Choice Mortgages Limited dated 15 March 2012 (the “Warning Notice”),
and in the Decision Notice, it appears to the FSA that Prime Choice Mortgages Limited is
failing to satisfy the threshold conditions set out in Schedule 6 to the Act (the “Threshold
Conditions”) in that the FSA is not satisfied that Prime Choice Mortgages Limited is a fit

and proper person having regard to all the circumstances, including the need to ensure
that its business is conducted soundly and prudently.

6. This is because Prime Choice Mortgages Limited has failed to comply with the regulatory
requirement to submit its Retail Mediation Activities Return for the period ended 31
October 2011 (the “RMAR”). Prime Choice Mortgages Limited has not been open and
co-operative in all its dealings with the FSA, in that it has failed to respond to the FSA's
repeated requests for it to submit the RMAR, and has thereby failed to comply with
Principle 11 of the FSA's Principles for Businesses and to satisfy the FSA that it is ready,
willing and organised to comply with the requirements and standards under the regulatory
system.

7. These failures, which are significant in the context of Prime Choice Mortgages Limited’s
suitability, lead the FSA to conclude that Prime Choice Mortgages Limited is not
conducting its business soundly and prudently and in compliance with proper standards,
that it is not a fit and proper person, and that it is therefore failing to satisfy the Threshold
Conditions in relation to the regulated activities for which it has had Part IV permission.

DECISION MAKER

8. The decision which gave rise to the obligation to give this Final Notice was made by the
Regulatory Decisions Committee.

IMPORTANT

9. This Final Notice is given to Prime Choice Mortgages Limited in accordance with section
390(1) of the Act.

Publicity

10. 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 this 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 Prime Choice Mortgages Limited or
prejudicial to the interests of consumers.

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

FSA Contact

12. For more information concerning this matter generally, please contact Evan Cheminais at
the FSA (direct line: 020 7066 7232/fax: 020 7066 6677).


John Kirby
FSA Enforcement and Financial Crime Division