FINAL NOTICE

ACTION

1.
By an application received by the FSA on 13 July 2010 (“the Application”) Travel
Solutionz Ltd (“Travel Solutionz”) applied under Regulation 12 of the Payment
Services Regulations 2009 (“the PSRs”) for registration as a small payment
institution and to perform the following payment services:

(1)
Money Remittance;

(2)
Bill Payment Service Provider

2.
The Application is incomplete.

3.
For the reasons listed below and pursuant to Regulation 13 of the PSRs, the FSA has
refused the Application.

SUMMARY OF REASONS

4.
By its Warning Notice dated 22 December 2011 (“the Warning Notice”) issued
pursuant to Regulation 9(7) of the PSRs, (as modified by Regulation 14), the FSA
gave notice that it proposed to refuse the Application and that Travel Solutionz was
entitled to make representations to the FSA about that proposed action.

5.
As no representations have been received by the FSA from Travel Solutionz within
the time allowed by the Warning Notice, the default procedures in paragraph 2.3.2 of
the FSA’s Decision Procedure and Penalties Manual apply, permitting the FSA to
treat the matters referred to in its Warning Notice as undisputed.

6.
By its Decision Notice dated 22 March 2012 ("the Decision Notice"), the FSA gave
Travel Solutionz notice that it had decided to take the action described above.

7.
Under section 133(1) of the Act, Travel Solutionz had 28 days from the date the
Decision Notice was given to refer the matter to the Upper Tribunal (formerly known
as the Financial Services and Markets Tribunal). No referral was made to the Upper
Tribunal within this period of time or to date.

8.
Under section 390(1) of the Act, the FSA, having decided to refuse the Application
and there having been no reference of that decision to the Tribunal, must give Travel
Solutionz Final Notice of its refusal.

9.
The FSA decided to refuse the Application and to give this Final Notice as Travel
Solutionz has failed to provide the information required by the FSA, and the FSA has
accordingly concluded that Travel Solutionz does not meet the ‘Conditions for
registration as a small payment institution’ set out in Regulation 13 of the PSRs on
the basis that:

(1)
Travel Solutionz has not demonstrated that it complies with a requirement of
the Money Laundering Regulations 2007 to be included in a register
maintained under those regulations.

(2)
Enquiries by the FSA have shown that Travel Solutionz has been removed
from the HMRC register under the Money Laundering Regulations 2007 on
the grounds that it had ceased trading.

DEFINITIONS

10. The definitions below are used in this Final Notice.

“the PSRs” means the Payment Services Regulations 2009

“the FSA” means the Financial Services Authority

“the Act” means the Financial Services and Markets Act 2000 (as modified and
applied by the PSRs)

FACTS AND MATTERS

11. The Application for registration as a small payment institution, made under the PSRs,
was received on 13 July 2010.

12. Further information was requested from Travel Solutionz to complete the Application
but the applicant has not responded. Details of all the communications between the
FSA and Travel Solutionz are set out below:

(1)
The FSA sent an email to Travel Solutionz on 26 July 2010 suggesting that it
reconsider its application since it had indicated on the Application that it
intended to become an agent once registered.

(2)
The firm responded on 5 August 2010 indicating that it would consider the
information provided and respond to the FSA.

(3)
The firm sent a second response on 28 August 2010 stating that it had
considered the information provided and would like to continue with the
registration of Travel Solutionz.

(4)
On 19 November 2010 an email was sent to the firm stating that its application
was incomplete and requesting confirmation of Travel Solutionz’ registration
with HMRC under the Money Laundering Regulations 2007, whether or not the
firm would be opting in for safeguarding, and to provide a brief description of
the business. Further, a query was raised in relation to the suggestion in the
Application that Travel Solutionz was exempt from the Financial Ombudsman
Service. The FSA received no response.

(5)
On 30 December 2010 Travel Solutionz was sent an additional email setting out
that there was missing information and outlining that, in the absence of a full
response to the email or subsequent attempts to contact Travel Solutionz, the
FSA would be minded to refuse Travel Solutionz’ application and issue a
Warning Notice. A copy of the email dated 19 November 2010 was attached.

(6)
On the 5 August 2011 the FSA called both of the contact numbers provided by
the Travel Solutionz but did not manage to make contact with the applicant.

(7)
On 5 August 2011 a letter was sent to Travel Solutionz by special delivery to
the address provided to the FSA in Travel Solutionz’ application. The letter
stated that the information requested on 19 November 2010 remained
outstanding in respect of the application and that, without a full response the
FSA would be minded to refuse Travel Solutionz’ application, in the absence of
the information required in order to determine the application. The FSA
received no response.

(8)
On 24 August 2011 the FSA telephoned the firm again. A voice message was
left on the applicant’s mobile number stating that we had not had a response and
requesting that the firm contact the FSA on the number provided.

(9)
On the 30 August, when it became apparent that the applicant was no longer
registered with HMRC under the Money Laundering Regulations 2007, an
email was sent to the firm explaining that, since it no longer met the threshold
conditions for registration, the FSA may be minded to refuse the application.
Travel Solutionz did not respond.

(10) On 7 September 2011, a further email was sent, again outlining the information
that was missing and stating that, without a full response, the FSA would be
minded to refuse Travel Solutionz’ application and issue a Warning Notice on
the grounds that it had failed to provide the information needed for the FSA to
determine the application. The FSA received no response.

13. The FSA received no substantive response to any of the communications set out
above.

CONCLUSIONS

14. Pursuant to Regulation 13(1) of the PSRs the FSA may refuse an application for
registration as a small payment institution if any of the conditions in paragraphs (2) –
(6) of Regulation 13 are not met. The Regulations and FSA guidance relevant to this
Final Notice are referred to in Annex A.

15. Regulation 13(6) requires that the “applicant must comply with a requirement of the
Money Laundering Regulations 2007 to be included in a register maintained under
those regulations where such a requirement applies to the applicant”.

16. Travel Solutionz failed to provide the FSA with its HMRC registration number in the
Application and thereafter. Further to this, recent investigation shows that Travel
Solutionz has been removed from the HMRC register on the grounds that it has
ceased trading.

17. On the basis of the facts and matters described above, the FSA has therefore
concluded that Travel Solutionz does not satisfy and will continue not to satisfy, the
‘Conditions for authorisation as a payment institution’ (Regulation 13) in relation to
all of the payment services for which Travel Solutionz would have permission if the
application was granted.

IMPORTANT NOTICES

18. This Final Notice is given to Travel Solutionz pursuant to Schedule 5 Part 1 (7) of the
PSRs (which incorporates section 390(1) of the Act).

19. 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 the 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 Travel Solutionz or
prejudicial to the interests of consumers.

FSA contacts

20. For more information concerning this matter generally, contact Jonathan
Bromberger, Manager, PSD Team at the FSA (direct line: 020 7066 9080 /email:
jonathan.bromberger@fsa.gov.uk.

Hilary Bourne
on behalf of the Regulatory Transactions Committee

ANNEX A – REGULATORY PROVISIONS RELEVANT TO THIS FINAL NOTICE

The Payment Services Regulations 2009

1. Regulation 9(2) of the PSRs (as applied by regulation 14 to applications for
registration as an SPI) provides that the Authority may determine an incomplete
application if it considers it appropriate to do so, and it must in any event determine
any such application within 12 months beginning with the date on which it received
the application.

2. Regulation 12(1) requires an application for registration as a small payment institution
to contain, or be accompanied by, the information required by the FSA.

3. Regulation 12(4) states that at any time after receiving an application and before
determining it, the FSA may require the applicant to provide it with such further
information as it reasonably considers necessary to enable it to determine the
application.

4. Regulation 13(1) states that the FSA may refuse to register an applicant as a small
payment institution only if any of the conditions set out in paragraphs (2) to (6) are not
met.

5. Regulation 13(6) states that the applicant must comply with a requirement of the
Money Laundering Regulations 2007 to be included in a register maintained under
those Regulations where such a requirement applies to the applicant.

6. Regulation 14 provides for regulations 7 to 11 to apply to registration as an SPI as
they apply to authorisation as a payment institution (subject to certain modifications).

7. Schedules 5, Part 1 (7) states that Part 26 of the Act applies with the modifications
detailed.

The Act (ie the Financial Services and Markets Act 2000)

8. Part 26 section 390(1) states that if the FSA has given a person a Decision Notice and
the matter was not referred to a Tribunal within the time required by the Tribunal
Procedure Rules, the FSA must give the person concerned a Final Notice.

9. Part 26 section 391(4) states that the FSA must publish such information about the
matter to which a final notice relates as it considers appropriate.

10. Part 26 section 391(6) states that the FSA may not publish information if publication
would, in its opinion, be unfair to the person with respect to whom the action was
taken or prejudicial to the interests of consumers.

11. Part 26 section 391(7) states that information is to be published in such a manner as
the FSA considers appropriate.

“The FSA’s role under the Payment Services Regulations 2009 – Our approach”

12. In exercising its powers in relation to the approval of an application for registration as
a small payment institution, the FSA must have regard to guidance published in the
FSA’s ‘Our approach’ document, including the section titled ‘Authorisation and
registration’. The version of the ‘Our approach’ document current at the date of the
application was dated May 2010.

13. The paragraphs relevant to the refusal of the Application are set out below (references
to ‘we’ are references to the FSA).

14. Paragraph 3.97: We have to make a decision on a complete application within three
months of receiving it. An application is complete when we have received all the
information and evidence needed for us to make a decision. We will let the applicant
know if we need more information.

15. Paragraph 3.98: In the case of an incomplete application, we must make a decision
within 12 months of receipt. However, if that date is reached and discussions with the
firm have not resulted in us receiving all the information we need to make our
decision, it is likely that an incomplete application will result in a refusal. This is
because it is unlikely we will have been able to satisfy ourselves that the applicant has
met the authorisation/registration requirements.

16. Paragraph 3.105: We can refuse an application when the information and evidence
provided does not satisfy the requirements of the PSRs. When this happens we are
required to give the applicant a Warning Notice setting out the reason for refusing the
application and allowing 28 days to make a representation on the decision.