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FINAL NOTICE

ACTION

1. By an application number 207252696 dated 19 February 2021 (“the Application”),

Reece Klewchuck (or “the Applicant”) applied under section 55A of the Act for Part
4A permission to carry on the regulated activities of:

a.
agreeing to carry on a regulated activity;

b.
limited permission credit broking;

c.
debt adjusting with the following limitation - limited to relevant credit
activity - This activity is limited to relevant credit activities as defined in
paragraph 2G of Schedule 6 of the Financial Services and Markets Act 2000

d.
debt counselling with the following limitation - limited to relevant credit
activity - This activity is limited to relevant credit activities as defined in
paragraph 2G of Schedule 6 of the Financial Services and Markets Act 2000

e.
providing credit information services with the following limitation - limited
to relevant credit activity - This activity is limited to relevant credit activities
as defined in paragraph 2G of Schedule 6 of the Financial Services and
Markets Act 2000

2. The Application is incomplete.

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

SUMMARY OF REASONS

4. By its Decision Notice the Authority gave notice that it proposed to refuse the

application and that Reece Klewchuck was entitled to make representations to the
Authority about the proposed action.

5. As no representations have been received by the Authority from Reece Klewchuck

within the time allowed by the Decision Notice, the default procedures in

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paragraph 2.3.2 of the Authority’s Decision Procedure and Penalties Manual
apply, permitting the Authority to treat the matters referred to in its Decision
Notice as undisputed and, accordingly, to give a Final Notice.

DEFINITIONS

6. 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 body corporate previously known as the Financial
Services Authority and renamed on 1 April 2013 as the Financial Conduct Authority;

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

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

“the Warning Notice” means the warning notice dated 8 October 2021 given to the
applicant by the Authority.

FACTS AND MATTERS

7. The Application was received by the Authority on 19 February 2021.

8. Further information was requested from Reece Klewchuck under section 55U(5) of

the Act.

9. The Authority contacted Reece Klewchuck on 11 August 2021 requesting the

following information in support of the Application with a deadline for response set
for 16 August 2021:

a. Further information relating to disclosures made in the ‘Fitness and

Propriety’ section of the application.

b. Clarification on why "Providing Credit Information Services with the

following limitation" - limited to relevant credit activity - This activity is limited
to relevant credit activities as defined in paragraph 2G of Schedule 6 of the
Financial Services and Markets Act 2000, was selected in the application.

10. Reece Klewchuck failed to provide the outstanding information by 16 August 2021.

11. On 1 September 2021, the Authority contacted Reece Klewchuck using the

telephone contact details in the Application but there was no response. A follow up
e-mail was sent on the same day, requesting a response by 6 September 2021.

12. On 7 September 2021, the Authority contacted Reece Klewchuck via telephone but

there was no response.

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13. On 8 September 2021, the Authority sent a letter to Reece Klewchuck by way of

recorded delivery, noting the lack of a response to its requests for the information
and informing it 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 the Authority issuing Reece Klewchuck with a Warning Notice
proposing to refuse the Application. Reece Klewchuck failed to provide the
outstanding information by the stated deadline of 10 working days.

IMPACT ON THRESHOLD CONDITIONS

14. Reece Klewchuck has failed to respond to 3 separate requests for the provision of

information considered by the Authority to be necessary to allow the Application to
be determined. The final request gave Reece Klewchuck 10 business days to
respond, and included a statement to the effect that Reece Klewchuck must contact
the Authority, or the Authority would issue Reece Klewchuck with a Warning Notice.

15. 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 Reece
Klewchuck satisfies, and will continue to satisfy, the threshold conditions.

16. 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 Reece Klewchuck would fail to do so if the
Application were to be granted.

17. The failure to provide the information raises concerns as to whether Reece

a. can be effectively supervised by the Authority as required by threshold

condition 2C;

b. has appropriate human resources, given Reece Klewchuck’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.

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

PROCEDURAL MATTERS

Decision maker

18. The decision which gave rise to the obligation to give this Final Notice was made

by the Executive Decision Maker.

19. This Final Notice is given under section 55X(2) and in accordance with section 390

of the Act.

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Confidentiality and publicity

20. Reece Klewchuck should note that this Final Notice may contain confidential

information and, unless it has been published by the Authority, should not be
disclosed to a third party (except for the purpose of obtaining advice on its
contents). Reece Klewchuck should also note that, under section 391(1A) of the
Act, a person to whom a Final Notice is given or copied may not publish the
Notice or any details concerning it unless the Authority has published the Notice
or those details.


21. Reece Klewchuck should also note, however, that the Authority must, under

section 391(4) of the Act, publish such information about the matter to which a
Decision Notice or Final Notice relates as it considers appropriate. A Decision
Notice or Final Notice may contain reference to the facts and matters contained in
this Notice.

Authority contacts

22. For more information concerning this matter generally, contact Emily Pinkerton,

Manager, Credit and Lending Department at the Authority (direct line: 020 7066
1450 / email: emily.pinkerton@fca.org.uk).


Yours faithfully

Executive Decision maker on behalf of the Authority

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ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS WARNING 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.

8. 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,

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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.


Threshold Condition 2C: Effective Supervision

9. 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

10. 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.


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

resources it has available.


12. 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

13. 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.

14. COND 2.5.4G(2)(c)G 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.

15. 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

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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.

END