FINAL NOTICE

ACTION

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


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


3.
VML has not referred the matter to the Tribunal within 28 days of the date on which
the Decision Notice was given to it.


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


DEFINITIONS

5.
The definitions below are used in this Final Notice:

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

“the Authority” means the Financial Conduct Authority;

“the Decision Notice” means the Decision Notice issued by the Authority to VML dated
1 March 2018;

“the Overdue Balance” means the amount owed by VML to the Authority of £395,
comprising: an invoice dated 21 July 2016 for £145 in respect of periodic fees and
levies, which was due for payment by 20 August 2016; and invoice dated 5 July 2017
for £250, in respect of an administrative fee for non-submission of a regulatory
return, which was due for payment by 4 August 2017;

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

“the Return” means CCR007 return for the period ended 31 March 2017, which VML
was due to submit to the Authority by 17 May 2017;

“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);

“VML” means Verwood Motors Limited;


“VML’s Part 4A permission” means the permission granted by the Authority to VML

pursuant to Part 4A of the Act; and

“the Warning Notice” means the Warning Notice issued by the Authority to VML dated
1 February 2018.


REASONS FOR THE ACTION

6.
On the basis of the facts and matters and conclusions described in the Warning
Notice, and in the Decision Notice, it appears to the Authority that VML is failing to
satisfy the suitability Threshold Condition, in that the Authority is not satisfied that
VML is a fit and proper person having regard to all the circumstances, including
whether VML managed its business in such a way as to ensure that its affairs were
conducted in a sound and prudent manner.


7.
VML has failed comply with the regulatory requirement to submit the Return and pay
the Overdue Balance. VML has not been open and co-operative in all its dealings with
the Authority, in that VML has failed to respond to the Authority’s repeated requests
for it to submit the Returns and pay the Overdue Balance, and has thereby failed to
comply with Principle 11 of the Principles and to satisfy the Authority that it is ready,
willing and organised to comply with the requirements and standards of the regulatory
system.


8.
These failures, which are significant in the context of VML’s suitability, lead the
Authority to conclude that VML has failed to manage its business in such a way as to
ensure that its affairs are conducted in a sound and prudent manner, 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 was granted a Part 4A permission.



DECISION MAKER

9.
The decision which gave rise to the obligation to give this Final Notice was made by
the Regulatory Decisions Committee.

IMPORTANT

10.
This Final Notice is given to VML in accordance with section 390(1) of the Act.

Publicity

11.
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 VML or prejudicial to the interest of consumers.


12.
The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.

Authority contact

13.
For more information concerning this matter generally, please contact Funmi Ojo at
the Authority (direct line: 020 7066 1354).

Anna Couzens
Enforcement and Market Oversight Division