F41

FINANCIAL
CONDUCT
AUTHORITY

25 The N()[tll (oIorriic1
(::anary VVbai f
Londn
E145H5

Tel
+44 (0)20 7C)66 1C)OO
Fax
+44 (O)2Q 71)66 1099
\vvvwfc9 O1g.Uk

.
‘r’4

. :
. ‘

.

1.
For the reasons set out in this Final Notice, the Authority hereby takes the
following action against RCG.

2.
The Authority issued to RCG the Decision Notice which notified RCG that, for the
reasons given below and pursuant to section 55J of the Act, the Authority had
decided to cancel RCG’s Part 4A permission.

3.
RCG has not referred the matter to the Tribunal within 2$ days of the date on
which the Decision Notice was given to RCG.

4.
Accordingly, the Authority has today cancelled RCG’s Part 4A permission.

DEFINITIONS

5.
The definitions below are used in this Final Notice (and in the Annex):

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

“the Authority” means the Financial Conduct Authority;

“•i•S
S

...
S ;

S
:
FINALNOTICE
S

ACTION

1 of 5

Rock & Co. Granite Limited
.
.
25 April 2018
Final Notice

“RCG” means Rock & Co. Granite Limited;

“RCG’s Part 4A permission” means the permission granted by the Authority to
RCG pursuant to Part 4A of the Act;

“the Decision Notice” means the Decision Notice given by the Authority to RCG
dated 7 March 2018;

“COND” means the Threshold Conditions part of the Handbook;
.•.

“EG” means the Enforcement Guide,

“the Handbook” means the Authority’s Handbook of rules and guidance,

“the Principles” means the Authority’s Principles for Businesses;
.

“the suitability Threshold Condition” means the threshold condition set out in
paragraph 2E of Schedule 6 to the Act;

“the Threshold Conditions” means the threshold conditions set out in Schedule 6
to the Act;

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

“the Warning Notice” means the Warning Notice given by the Authority to RCG
dated 8 February 2018.

RELEVANT STATUTORY PROVISIONS

6.
The statutory and regulatory provisions relevant to this Final Notice are set out in
the Annex.

FACTS AND MATTERS RELIED ON

7.
RCG was authorised by the Authority on 10 October 2016 to conduct consumer
credit activities.

8.
RCG has failed to co-operate with the Authority in that it has failed to respond to
repeated Authority correspondence requesting that RCG take specific actions,
including updating its contact details on the Authority’s records.

FAILINGS

9.
The Authority has concluded, on the basis of the facts and matters described
above, that:

a.
by failing to respond to the Authority’s correspondence, and in particular,
the Authority’s requested for information and for RCG to take specific
actions, RCG is failing to comply with Principle 11 (which requires a firm to
deal with the Authority in an open and co-operative way and to disclose to
the Authority appropriately anything relating to the firm of which the
Authority would reasonably expect notice;

b.
RCG is therefore not a fit and proper person having regard to all the
circumstances because it is failing to satisfy the Authority that its business

2 of 5

is being, or will be, managed in such a way as to ensure that its affairs will
be conducted in a sound and prudent manner; and

c.
RCG is therefore failing to satisfy the suitability Threshold Condition.

10.
Accordingly, RCG’s Part 4A permission should be cancelled.

DECISION MAKER

11.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

12.
This Final Notice is given to RCG in accordance with section 390(1) of the Act.

.
.

13.
The Authority must publish such information about the matter to which this Final
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 RCG or prejudicial to the interest of consumers.

15.
For more information concerning this matter generally, RCG should

If Dratcu at the Authority (direct line: 020 7066 6764).

a-ouzens
Enforcement and Market Oversight Division

14.
The Authority intends to publish this Final Notice and such information about the
matter to which this Final Notice relates as it considers appropriate.

Authority Contact
.

7

,
.

:
7

:
.

3 of 5

ANNEX

RELEVANTSTATUTORYPROVISIONS
:

1.
The Authority’s operational objectives established in section lB of the Act include
protecting and enhancing the integrity of the UK financial system and securing an
appropriate degree of protection for consumers.

2.
The Authority is authorised by section 55J of the Act to cancel an authorised
person’s Part 4A permission, where it appears to the Authority that such a person
is failing to satisfy the Threshold Conditions.

3.
The suitability Threshold Condition provides, in relation to a person (“A”) carrying
on or seeking to carry on regulated activities which do not consist of or include a
PRA-regulated activity, that:

“A must be a fit and proper person, having regard to all the circumstances,
including-

(f) whether A’s business is being, or is to be, managed in such a way as to ensure
that its affairs will be conducted in a sound and prudent manner.”

RELEVANT HANDBOOK PROVISIONS

4.
In exercising its power to cancel a firm’s Part 4A permission, the Authority must
have regard to the
regulatory requirements and
guidance
published
in the
Handbook and in regulatory guides, such as EG. The relevant main considerations
in relation to the action specified above are set out below.

5.
Principle 11 requires a firm to deal with its regulators in an open and co-operative
way, and to disclose to the Authority appropriately anything relating to the firm of
which the Authority would reasonably expect notice.

Guidance concerning the suitability Threshold Condition

6.
Guidance on the suitability Threshold Condition is set out in COND.

COND 2.5
— Suitability: Paragraph 2E of Schedule 6 to the Act

7.
COND
2.5.1AUK reproduces the
relevant statutory
provision that
a
person
concerned
must
be
a
fit
and
proper
person
having
regard
to
all
the
circumstances, including, amongst other things, the need to ensure that its
business is being, or is to be, managed in such a way as to ensure that its affairs
will be conducted in a sound and prudent manner.
‘

8.
COND 2.5.1BG confirms that paragraph 2E of Schedule 6 of the Act sets out the
suitability Threshold Condition for firms carrying on, or seeking to carry on,
regulated activities which do not consist of or include a PRA-regutated activity.

9.
COND 2.5.2G states that the Authority will take into consideration anything that
could influence a firm’s continuing ability to. satisfy the suitability Threshold
Condition.

4 of 5

Rock & Co. Granite Limited
.
25 April 2018
Final Notice

10.
COND 2.5.6G gives 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, the suitability Threshold Condition, including whether:

.
the firm has been open and co-operative in all its dealings with the Authority
and
is ready, willing and organised to comply with the requirements and
standards under the regulatory system (COND 2.5.6G(1));

.
the
firm
has contravened,
amongst other things,
the
provisions of the
regulatory system,
which
include the
Principles and
other rules
(COND
2.5.6G(4)).

OTHER RELEVANT REGULATORY PROVISIONS

11.
The Authority’s policy in relation to its enforcement powers is set out in EG,
certain provisions of which are summarised below.

CanceIIing a firm’s Part 4A permission on the Authority’s own initiative

12.
EG 8.1.1(1) provides that the Authority may use its own initiative power to vary
or cancel the Part 4A permission of an authorised person under section 55J of the
Act where the person
is failing or is likely to fail to satisfy the Threshold
Conditions for which the Authority is responsible.

13.
EG 8.5.1(1) states that the Authority will consider cancelling a firm’s Part 4A
permission using its own initiative power contained in section 55J of the Act in
circumstances where the Authority has very serious concerns about a firm, or the
way its business is or has been conducted.

14.
EG 8.5.2 provides examples of the types of circumstances in which the Authority
may cancel a firm’s Part 4A permission. One such example is the failure by a firm

.
to co-operate with the Authority which
is of sufficient seriousness that the

.
Authority ceases to be satisfied that the firm is fit and proper, for example failing
without reasonable excuse to provide material information or take remedial action
reasonably required by the Authority (EG 8.5.2(8)(b)).

,,.
V

•
‘
V
V

t:
.
.

5 of 5