FINAL NOTICE

Quality Cars Poole Limited
6 West Road
Bournemouth
Dorset
England
BH5 2AL

ACTION

1.
By an application dated 30 October 2019 (“the Application”), Quality Cars Poole
Limited (“QCPL”) applied under section 55A of the Act for Part 4A permission to
carry on the regulated activities of:

a. Limited permission lending;

b. Consumer hire;

c. Limited permission credit broking; and

d. Broking of consumer hire and hire purchase.

2.
The Application is incomplete.

3.
For the reasons listed below, the Authority has refused the Application.

SUMMARY OF REASONS

4.
By its Warning Notice dated 18 February 2021, the Authority gave notice that it
proposed to refuse the Application and that QCPL was entitled to make
representations to the Authority about that proposed action.

5. As no representations were received by the Authority from QCPL within the time
allowed by the Warning Notice, the default procedures in paragraph 2.3.2 of the
Authority’s Decision Procedure and Penalties Manual applied, permitting the
Authority to treat the matters referred to in its Warning Notice as undisputed and,
accordingly, to give QCPL a Decision Notice.

6. By its Decision Notice dated 6 May 2021, the Authority gave QCPL notice that it
had decided to take the action described above.

7. QCPL had 28 days from the date the Decision Notice was given to refer the matter
to the Tribunal. No referral was made to the Tribunal within this period of time or
to date.

8. Under section 390(1) of the Act, the Authority, having decided to refuse the
Application and there having been no reference of that decision to the Tribunal,
must give QCPL final notice of its refusal.

9. QCPL has failed to respond to four requests for the provision of information
considered by the Authority to be necessary to allow the Application to be
determined. The last request included a statement to the effect that QCPL must
contact the Authority within 10 business days, or the Authority would recommend
to the Authority’s Regulatory Transactions Committee that QCPL receive a Warning
Notice. No response was received.

10. The Authority has therefore determined the Application based upon the
information received to date, in circumstances where its requests for information
have not been met. Having reviewed that information, the Authority cannot ensure
that QCPL satisfies, and will continue to satisfy, the threshold conditions set out in
schedule 6 to the Act.

11. Authorised firms, and those seeking authorisation, are expected to engage with
the Authority in an open and co-operative way. The failure to provide the
requested information raises concerns that QCPL would fail to do so if the
Application were to be granted.

12. The failure to provide the information raises concerns as to whether QCPL:

a. can be effectively supervised by the Authority as required by threshold
condition 2C (Effective Supervision);

b. has appropriate human resources, given QCPL’s failure to provide the
Authority with the requested information as required by threshold condition
2D (Appropriate Resources); and

c. will conduct its business with integrity and in compliance with proper
standards as required by threshold condition 2E (Suitability).

DEFINITIONS

The definitions below are used in this Final Notice.

“the Act” means the Financial Services and Markets Act 2000

“the Application” means the application referred to in paragraph 1 above;

“the Authority” means the Financial Conduct Authority;

“the Decision Notice” means the notice dated 6 May 2021 given to QCPL by the
Authority;

“the RDC” means the Regulatory Decisions Committee;

“the RTC” means the Regulatory Transactions Committee;

“SUP” means the Supervision section of the Authority’s handbook;

“SYSC” means the Senior Management Arrangements, Systems and Controls
section of the Authority’s handbook;

“the Tribunal” means the Upper Tribunal (Tax & Chancery Chamber); and

“the Warning Notice” means the notice dated 18 February 2021 given to QCPL by
the Authority.

FACTS AND MATTERS

13. The Application was received by the Authority on 30 October 2019.

14. Further information was requested from QCPL under section 55U(5) of the Act.

15. Details of the relevant communications between the Authority and QCPL are set
out below.

16. Between 6 January 2020 and 15 October 2020, the Authority sent QCPL 8 emails,
2 letters and made 12 telephone calls to elicit information from QCPL that would
assist the Authority in determining the Application.

17. On 6 January 2020, the Authority emailed QCPL to request, by 20 January 2020,
that QCPL:

a. review the definition of an ‘Appointed Representative’ and confirm if it intends
to appoint any Appointed Representatives;

b. clarify the business activities it intends to engage in and confirm the
permissions applied for including confirmation of whether it intends to offer
part exchange on goods, along with considering applying for the additional
regulated activities of `Limited Permission debt adjusting’ and `Limited
Permission debt counselling’;

c. review and confirm that it has no objection to the Authority updating its name
on the application to match the registered name on Companies House;

d. provide proof of address by either submitting a utility bill or bank statement;
and

e. provide further information in relation to the disclosure made by QCPL in its
Form A application.

18. On 17 January 2020, the Authority received a voicemail from the named contact
for the firm, the director of QCPL at the time, requesting a call back. On 17

January 2020, the Authority attempted to contact QCPL by telephone. The call was
not answered and a voicemail was left requesting QCPL contact the Authority.

19. QCPL failed to provide the information outlined in paragraph 17 by 20 January
2020.

20. On 21 January 2020, QCPL emailed the Authority requesting the Authority to call
QCPL.

21. On 28 January 2020, the Authority contacted QCPL using the telephone number
provided in QCPL’s email dated 21 January 2020. QCPL informed the Authority
that it would like to replicate the permission profile of another authorised firm of
which the named person linked to QCPL was the sole approved person of, which
had had its authorisation revoked on 29 January 2019. The Authority also
repeated its request for the information requested in its email dated 6 January
2020, but the individual explained to the Authority that he was not best placed to
answer those questions and provided the Authority with an alternative number for
the Director of QCPL.

22. On 28 January 2020, the Authority emailed QCPL noting the earlier telephone call
on 28 January 2020 and requested that QCPL provide the outstanding information
by 31 January 2020.

23. On 31 January 2020, QCPL emailed the Authority explaining that it had attempted
to contact the Authority by telephone but that the call had been diverted to
voicemail. Separately, QCPL explained why the authorised firm referred to in
paragraph 21 above had had its authorisation revoked and provided further
information in relation to paragraph 17(e) above.

24. On 4 February 2020, the Authority emailed QCPL, noting that QCPL had not
responded substantially to all of the requests for information in the Authority’s
email dated 6 January 2020. The Authority requested the outstanding information,
namely the information in relation to paragraphs 17(b), 17(c) and 17(d), by 11
February 2020. QCPL failed to provide the outstanding information.

25. On 18 February 2020, the Authority attempted to contact QCPL by telephone using
the contact details provided in the Application, but the call was not answered and
a voicemail was left requesting QCPL contact the Authority.

26. On 10 March 2020, the Authority attempted to contact QCPL again by telephone
using the Director’s personal mobile number. The call was not answered and a
voicemail was left requesting QCPL contact the Authority. On the same day, the
Authority emailed QCPL requesting that it provide the outstanding information in
the Authority’s email dated 4 February 2020. The Authority requested the
outstanding information by 24 March 2020. QCPL failed to provide the
outstanding information.

27. On 31 March 2020, the Authority sent a letter to QCPL by way of email, noting the
lack of response to its request for information on 4 February 2020 and requested
that QCPL provide the outstanding information by 14 April 2020. The letter also
informed QCPL that a failure to provide the information would result in the
Application being determined based upon the information received to date and
that this might result in a recommendation to the RTC that it issue QCPL a
warning notice proposing to refuse the Application. QCPL failed to respond to this
request.

28. On 1 April 2020, the Authority attempted to contact QCPL by telephone using the
contact details in the Application. The call was not answered and a voicemail was
left. On the same day, the Authority conducted an open search on QCPL and
attempted to contact QCPL using the telephone number and email address
identified from the open search results. The Authority requested that QCPL
contacted the Authority by 8 April 2020. QCPL failed to respond.

29. On 4 June 2020, the Authority attempted to contact QCPL by telephone using the
contact details provided in the Application. The call was not answered and a
voicemail was left requesting QCPL contact the Authority.

30. On 1 October 2020, the Authority noted from Companies House that the Director
who had submitted the Application on behalf of QCPL, had resigned on 18
February 2020 and a new Director had been appointed on 31 July 2020. The
registered office address had also been changed since the Application was
submitted. The Authority was not informed of these changes by QCPL.

31. On 8 October 2020, the Authority conducted a further open search and identified a
new telephone number for QCPL. The Authority attempted to contact QCPL using
the new telephone contact details. The two calls were not answered but a
voicemail was left requesting QCPL contact the Authority.

32. On 15 October 2020, the Authority attempted to contact QCPL using the new
telephone contact details. The call was not answered. The Authority then
attempted to contact QCPL using the telephone contact details listed in the
Application. The three attempts made suggested that the telephone line was busy.

33. On 15 October 2020, the Authority sent a letter to QCPL via recorded delivery (to
the new registered office address) and by email. The email and letter were both
addressed to the new Director and noted QCPL’s lack of response to the
Authority’s request for information dated 4 February 2020 and requested that
QCPL provide the outstanding information in support of the Application by 30
October 2020. The Authority informed QCPL that a failure to provide the
information would result in the Application being determined based upon the
information received to date and that this might result in a recommendation to the
RTC that it give QCPL a Warning Notice proposing to refuse the Application. The
letter was signed for by QCPL on 16 October 2020. QCPL failed to provide the
outstanding information.

IMPACT ON THRESHOLD CONDITIONS

34. The regulatory provisions relevant to this Decision Notice are referred to in
Annex A.

35. QCPL has failed to respond to four requests for the provision of information
considered by the Authority to be necessary to allow the Application to be
determined. The final request gave QCPL 10 business days to respond and
included a statement to the effect that QCPL must contact the Authority, or the
Authority would recommend to the RTC that QCPL receives a Warning Notice.

36. The Authority must therefore determine the Application based upon the
information received to date, in circumstances where its requests for information
have not been met. Having reviewed that information, the Authority cannot
ensure that QCPL satisfies, and will continue to satisfy, the threshold conditions.

37. Authorised firms (and those seeking authorisation) are expected to engage with
the Authority in an open and cooperative way. The failure to provide the requested
information raises concerns that QCPL would fail to do so if the Application were to
be granted.

38. The failure to provide the information means that the Authority cannot ensure that
QCPL:

a. can be effectively supervised by the Authority as required by threshold
condition 2C;

b. has the appropriate human resources, given QCPL’s failure to provide the
Authority with the requested information as required by threshold condition
2D; and

c. will conduct its business with integrity and in compliance with proper
standards as required by threshold condition 2E.

IMPORTANT NOTICES

39. This Final Notice is given under section 390(1) of the Act.

40. Sections 391(4), 391(6) and 391(7) of the Act apply to the publication of
information about the matter to which this Notice relates. Under those provisions,
the Authority must publish such information about the matter to which this 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 publication would, in the opinion of the
Authority, be unfair to you or prejudicial to the interests of consumers or
detrimental to the stability of the UK financial system.

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

Authority contacts

42. For more information concerning this matter generally, contact Nozrul Ali,
Manager, Credit and Mortgage Intermediaries at the Authority (direct line: 020
7066 4792 / email: Nozrul.Ali@fca.org.uk).

Karen Avis
on behalf of the Regulatory Transactions Committee

ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL NOTICE

1. Section 55A(1) of the Act provides for an application for permission to carry on
one or more regulated activities to be made to the appropriate regulator. Section
55A(2) defines the “appropriate regulator” for different applications.

2. Section 55B(3) of the Act provides that, in giving or varying permission, imposing
or varying a requirement, or giving consent, under any provision of Part 4A of the
Act, each regulator must ensure that the person concerned will satisfy, and
continue to satisfy, in relation to all of the regulated activities for which the
person has or will have permission, the threshold conditions for which that
regulator is responsible.

3. The threshold conditions are set out in schedule 6 of the Act. In brief, the
threshold conditions relate to:

(1)
Threshold condition 2B: Location of offices

(2)
Threshold condition 2C: Effective supervision

(3)
Threshold condition 2D: Appropriate resources

(4)
Threshold condition 2E: Suitability

(5)
Threshold condition 2F: Business model

Relevant provisions of the Authority’s Handbook

4. In exercising its powers in relation to the granting of a Part 4A permission, the
Authority must have regard to guidance published in the Authority’s Handbook,
including
the
part
entitled
Threshold
Conditions
(“COND”).
The
main
considerations in relation to the action specified are set out below.

5. COND 1.3.2G(2) states that, in relation to threshold conditions 2D to 2F, the
Authority will consider whether a firm is ready, willing and organised to comply
on a continuing basis with the requirements and standards under the regulatory
system which will apply to the firm if it is granted Part 4A permission.

6. COND 1.3.3AG provides that, in determining the weight to be given to any
relevant matter, the Authority will consider its significance in relation to the
regulated activities for which the firm has, or will have, permission in the context
of its ability to supervise the firm adequately, having regard to the Authority’s
statutory objectives. In this context, a series of matters may be significant when
taken together, even though each of them in isolation might not give serious
cause for concern.

7. COND 1.3.3BG provides that, in determining whether the firm will satisfy, and
continue to satisfy, the Authority threshold conditions, the Authority will have
regard to all relevant matters, whether arising in the United Kingdom or
elsewhere.

Threshold Condition 2C: Effective Supervision

8. COND 2.3.3G states that, in assessing the threshold condition set out in
paragraph 2C of schedule 6 to the Act, factors which the Authority will take into
consideration include, among other things, whether it is likely that the Authority
will receive adequate information from the firm to determine whether it is
complying with the requirements and standards under the regulatory system for
which the Authority is responsible and to identify and assess the impact on its
statutory objectives; this will include consideration of whether the firm is ready,
willing and organised to comply with Principle 11 (Relations with regulators) and
the rules in SUP on the provision of information to the Authority.

Threshold condition 2D: Appropriate Resources

9. COND 2.4.2G(2) states that the Authority will interpret the term 'appropriate' as
meaning sufficient in terms of quantity, quality and availability, and 'resources' as
including all financial resources (though only in the case of firms not carrying on,
or seeking to carry on, a PRA-regulated activity), non-financial resources and
means of managing its resources; for example, capital, provisions against
liabilities, holdings of or access to cash and other liquid assets, human resources
and effective means by which to manage risks.

10. COND 2.4.2G(2A) provides that, ‘non-financial resources’ of the firm include
human resources it has available.

11. COND 2.4.2G (3) states that high level systems and control requirements are in
SYSC. The Authority will consider whether the firm is ready, willing and organised
to comply with these and other applicable systems and controls requirements
when assessing if it has appropriate non-financial resources for the purpose of the
threshold conditions set out in threshold condition 2D.

Threshold condition 2E: Suitability

12. COND 2.5.2G(2) states that the Authority will also take into consideration
anything that could influence a firm's continuing ability to satisfy the threshold
conditions set out in paragraphs 2E and 3D of schedule 6 to the Act. Examples
include the firm's position within a UK or international group, information
provided by overseas regulators about the firm, and the firm's plans to seek to
vary its Part 4A permission to carry on additional regulated activities once it has
been granted that permission.

13. COND 2.5.4G(2)(a) states that examples of the kind of general considerations to
which the Authority may have regard when assessing whether a firm will satisfy,
and continue to satisfy, threshold condition 2E include, but are not limited to,
whether the firm can demonstrate that it conducts, or will conduct, its business
with integrity and in compliance with proper standards.

14. COND 2.5.6G provides that examples of the kind of particular considerations to
which the Authority may have regard when assessing whether a firm will satisfy,
and continue to satisfy, this threshold condition include, but are not limited to,
whether the firm has been open and co-operative in all its dealings with the
Authority and any other regulatory body (see Principle 11 (Relations with
regulators)) and is ready, willing and organised to comply with the requirements
and standards under the regulatory system (such as the detailed requirements of
SYSC and, in relation to a firm not carrying on, or seeking to carry on, a PRA-

regulated activity only, the Prudential Standards part of the Authority’s
Handbook) in addition to other legal, regulatory and professional obligations; the
relevant requirements and standards will depend on the circumstances of each
case, including the regulated activities which the firm has permission, or is
seeking permission, to carry on.