FIRST SUPERVISORY NOTICE

To:
Noel Norbert Walker trading as Walkers Financial Planning

Of:
1 Redcatch Road

Knowle

Bristol

Avon

BS4 2EP




Firm
Reference


Number:

137916

ACTION

1.
For the reasons given below and pursuant to section 55J of the Act, the Authority
has decided to vary the permission granted to Noel Norbert Walker trading as
Walkers Financial Planning (“Mr Walker”) pursuant to Part 4A of the Act, by
removing all regulated activities with immediate effect. Accordingly, Mr Walker’s
Part 4A permission no longer includes the regulated activities of:

(a)
advising on investments (except on Pension Transfers and Pension Opt Outs);

(b)
advising on regulated mortgage contracts;

(c)
agreeing to carry on a regulated activity;


(d)
arranging (bringing about) deals in investments;

(e)
arranging (bringing about) regulated mortgage contracts;

(f)
dealing in investments as agent;

(g)
making arrangements with a view to regulated mortgage contracts; and

(h)
making arrangements with a view to transactions in investments.

2.
The Authority has further decided to vary Mr Walker’s Part 4A permission by
imposing the following requirements, pursuant to section 55J of the Act, namely
that Mr Walker must:

(a)
within 14 days notify in writing all clients for Mr Walker’s regulated activities
that he is no longer permitted by the Authority to carry on regulated
activities; and

(b)
within 14 days provide the Authority with a copy of the written notification
sent to all clients for his regulated activities pursuant to (a) above, together
with a list of all clients to whom such notification has been sent.

REASONS FOR ACTION

3.
The Authority has concluded, on the facts and matters described below, that Mr
Walker is failing and will continue to fail to satisfy the Threshold Conditions, in that
the Authority is not satisfied that Mr Walker is a fit and proper person having
regard to all the circumstances. In the opinion of the Authority, Mr Walker has
failed to satisfy the Authority that he is conducting his affairs in an appropriate
manner, having regard in particular to the interests of consumers, and also that his
affairs are conducted in a sound and prudent manner, and Mr Walker’s conduct has
not met the requirements of Principle 1 (Integrity) of the Authority’s Principles for
Businesses (the “Principles”) under which a firm must conduct its business with
integrity.

DEFINITIONS

4.
The definitions below are used in this First Supervisory Notice:


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


“the Authority” means the body corporate previously known as the Financial
Services Authority and renamed on 1 April 2013 as the Financial Conduct
Authority;



“Mr Walker’s Part 4A permission” means Mr Walker’s permission pursuant to Part
4A of the Act;



“the Threshold Conditions” means the threshold conditions set out in Part 1B of
Schedule 6 to the Act; and



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



FACTS AND MATTERS RELIED ON

5.
Mr Walker, a sole trader, was authorised by the Authority on 1 December 2001 to
conduct designated investment business. On 31 October 2004, Mr Walker was
also permitted to conduct regulated home finance business, and on 14 January
2005 he was also permitted to conduct insurance mediation business. With effect
from 19 February 2013, Mr Walker varied his permission so that he is no longer
able to conduct designated investment business.

6.
On or around 21 March 2013, on 30 March 2013 and on 5 April 2013 respectively
(the “Contact Dates”), Mr Walker met with customers A and B and had a
telephone
conversation
with
customer
C
(together
referred
to
as
the
“Customers”). During these contacts, the Customers did not sign any application
documents, nor did they provide Mr Walker with oral authority to submit any
pension transfer application on their behalf.

7.
The discussion that Mr Walker had with the Customers on the Contact Dates,
amounted to advising on and arranging investments for retail customers, activities
that he had ceased to have permission to engage in from 19 February 2013, his
permission having been varied to that effect on that date.

8.
On 31 March 2013, Mr Walker submitted three pension transfer applications to
Firm A, each in the names of the Customers. Each application included a signature
purporting to be that of the relevant Customer. The applications were to effect the
transfer of the Customers’ pension from Firm A to Firm B. Each of the customers
has confirmed that they did not consent to the application being submitted by Mr
Walker on their behalf, and that they did not sign the application documents.

9.
Mr Walker has failed to provide a satisfactory explanation of why he thought he
had obtained the Customers’ consent to submit the applications, or of the
circumstances surrounding the signing of the application documents. He stated
that he had met and had discussions with each of the Customers about
transferring their pensions approximately eighteen months earlier, and that he
had obtained the Customers’ original signatures on the applications at that time.
He failed to provide documentary evidence to substantiate that claim, and it is
contradicted by the Customers. He also stated that he had obtained the
Customers’ oral confirmation that they wished to proceed with the applications on
the Contact Dates.

FAILINGS

10.
The regulatory provisions relevant to this First Supervisory Notice are set out in
the Annex.

11.
From the facts and matters described above the Authority, having regard to its
operational objectives, has reached the following conclusions:

•
Mr Walker acted with a lack of integrity: (i) by submitting the applications
without first obtaining consent from the Customers to, or their signatures on,
the applications; (ii) in stating to the Authority that he had obtained the
Customers’ original signatures on the applications approximately eighteen
months previously; and (iii) in advising on and arranging transactions for
which he did not have permission;


•
the risk of loss or other adverse effect on consumers by Mr Walker’s failings,
which are material breaches of requirements imposed on him by the
Authority, causes the Authority to have very serious concerns about Mr
Walker such that the exercise of the Authority’s own-initiative power to vary
Mr Walker’s Part 4A permission with immediate effect is an appropriate
response to those concerns; and

•
it is desirable to exercise the Authority’s own initiative power to vary Mr
Walker’s Part 4A permission with immediate effect to meet its operational
objectives, and specifically in relation to Mr Walker, the objective of the
protection of consumers.

PROCEDURAL MATTERS

Decision Maker

12.
The decision which gave rise to the obligation to give this First Supervisory Notice
was made by the Acting Chairman of the Regulatory Decisions Committee.

13.
This First Supervisory Notice is given to Mr Walker under section 55Y(4) and in
accordance with section 55Y(5) of the Act, and is being served on Mr Walker at his
place of business as last notified to the Authority. The following statutory rights are
important.

The Tribunal

14.
Mr Walker has the right to refer the matter to which this First Supervisory Notice
relates to the Tribunal. The Tax and Chancery Chamber is the part of the Tribunal
which, amongst other things, hears references arising from decisions of the
Authority. Under paragraph 2(2) of Schedule 3 of the Tribunal Procedure (Upper
Tribunal) Rules 2008, Mr Walker has 28 days from the date on which this First
Supervisory Notice is given to him to refer the matter to the Tribunal.

15.
A reference to the Tribunal can be made by way of a reference notice (Form FTC3)
signed by Mr Walker and filed with a copy of this First Supervisory Notice. The
Tribunal’s contact details are: The Upper Tribunal, Tax and Chancery Chamber, 45
Bedford Square, London WC1B 3DN (telephone: 020 7612 9700; email:
financeandtaxappeals@tribunals.gsi.gov.uk).

16.
Further details are contained in “Making a Reference to the UPPER TRIBUNAL (Tax

and Chancery Chamber)” which is available from the Tribunal website:

17.
Mr Walker should note that a copy of the reference notice (Form FTC3) must also
be sent to the Authority at the same time as filing a reference with the Tribunal. A
copy of the reference notice should be sent to Roger Hylton at the Financial
Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

Representations

18.
Mr Walker has the right to make written and oral representations to the
Authority. The deadline for providing written representations to the Authority and
also to notify the Authority that Mr Walker wishes to make oral representations is

8 July 2013 or such later date as may be permitted by the Authority. Written
representations should be made to the Regulatory Decisions Committee and sent
to:

Lynn Cheesman
Regulatory Decisions Committee Professional Support Services
Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS

19.
Mr Walker should note that section 391 of the Act requires the Authority when the
First Supervisory Notice takes effect (and this First Supervisory Notice takes
immediate effect), to publish such information about the matter as it considers
appropriate.

Contacts

20.
For more information concerning this matter generally, Mr Walker should contact
Roger Hylton at the Authority (direct line: 020 7066 8168).

21.
If Mr Walker has any questions regarding the procedures of the Regulatory
Decisions Committee, he should contact Lynn Cheesman (direct line: 020 7066
3192).

Andrew Long
Acting Chairman, Regulatory Decisions Committee

ANNEX TO THE FIRST SUPERVISORY NOTICE ISSUED BY THE AUTHORITY TO
NOEL NORBERT WALKER TRADING AS WALKERS FINANCIAL PLANNING ON 20
JUNE 2013

RELEVANT STATUTORY PROVISIONS

1.
The Authority’s operational objectives established in section 1(B) of the Act include
the protection of consumers.

2.
Section 20(1) of the Act provides that:

“(1) If an authorised person other than a PRA-authorised person carries on
a regulated activity in the United Kingdom, or purports to do so, otherwise
than in accordance with permission—


(a) given to that person under Part 4A, or

(b) resulting from any other provision of this Act,

he is to be taken to have contravened a requirement imposed on him by
the [Authority] under this Act.”


3.
The Authority is authorised by section 55J of the Act to exercise the following
powers:

•
to vary an authorised person’s permission where it appears to the
Authority that such person is failing to satisfy the threshold conditions
(section 55J(1)(a));

•
to vary an authorised person’s permission where it is desirable to do so to
advance any of its operational objectives (section 55J(1)(c)(i));

•
to vary such a permission by removing a regulated activity from those for
which the permission is given (section 55J(2)(a)(ii)); and

•
to include any provision in the permission as varied that could be included
if a fresh permission were being given in response to an application under
section 55A of the Act, (section 55J(10)).

4.
Section 55Y of the Act allows such a variation to take effect immediately (or on a
specified date) only if the Authority having regard to the ground on which it is
exercising its own-initiative power, reasonably considers that it is necessary for
the variation to take effect immediately (or on that date).

5.
Section 391 of the Act provides that:

(5) When a supervisory notice takes effect, the [Authority] must
publish such information about the matter to which the notice
relates as it considers appropriate.

(6) The [Authority] may not publish information under this section if,
publication of the information would, in its opinion, be –

(a) unfair to the person with respect to whom the action was
taken. [or]

(b) prejudicial to the interests of consumers

…

(7) Information is to be published under this section in such manner as
the [Authority] considers appropriate.”

6.
Paragraph 2E to Schedule 6 to the Act states that:

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

(c)
the need to ensure that A’s affairs are conducted in an appropriate
manner, having regard in particular to the interests of consumers and the
integrity of the UK financial system; and

(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

7.
In exercising its power to vary a Part 4A permission, the Authority must have
regard to guidance published in the Authority’s Handbook of Rules and Guidance
(the “Handbook”). The relevant main considerations in relation to the action
specified above are set out below.

Relevant Principle

8.
Principle 1 (Integrity) of the Principles, states that a firm must conduct its
business with integrity.

Guidance concerning the relevant Threshold Condition

9.
Guidance on the Threshold Conditions is set out in the part of the Handbook
entitled Threshold Conditions (“COND”).


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

10.
COND 2.5.1AUK(1) reproduces the relevant statutory provision that the person
concerned must be a fit and proper person having regard to all the
circumstances, including amongst other things, the need to ensure that his affairs
are conducted in an appropriate manner, having regard in particular to the
interests of consumers; and also whether his business is being, or is to be,

managed in such a way that his affairs are conducted in a sound and prudent
manner (COND 2.5.1AUK(1)(c) and (f)).

11.
COND 2.5.4G(2)(a) states that the Authority, when forming its opinion as to
whether a firm is conducting its affairs in an appropriate and sound and prudent
manner, will have regard to relevant matters, including whether it conducts, or
will conduct, its business with integrity and in compliance with proper standards.

12.
COND 2.5.6G states that the Authority, when forming its opinion as to whether a
firm is conducting its business with integrity and in compliance with proper
standards, may have regard to considerations including whether a firm has
contravened any provisions of the Act or the regulatory system, which include the
Threshold Conditions, the Principles and other rules (COND 2.5.6G(4)).

OTHER RELEVANT REGULATORY PROVISIONS

13.
The Authority's policy in relation to its enforcement powers is set out in the
Enforcement Guide (EG), certain provisions of which are summarised below.

14.
EG 8.1 reflects the provisions of section 55J of the Act that the Authority may use
its own-initiative power to vary or cancel the permission of an authorised firm
where a firm is failing or is likely to fail to satisfy the threshold conditions (EG
8.1(1)); or where it is desirable to exercise the power in order to advance one or
more of its operational objectives (EG 8.1(3)).

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

15.
EG 8.1B provides that the Authority will have regard to its statutory objectives and
the range of regulatory tools that are available to it, when it considers how it
should deal with a concern about a firm.

16.
EG 8.3 provides that the Authority will exercise its formal powers under section 55J
or 55L of the Act, where the Authority considers it is appropriate to ensure a firm
meets its regulatory requirements. EG 8.3(1) specifies that the Authority may
consider it appropriate to exercise its powers where it has serious concerns about a
firm or the way its business is being or has been conducted.

17.
EG 8.5(1)(a) specifies that the Authority will consider exercising its own-initiative
power under section 55J(1)(a) or 55L(2)(a) of the Act, where the firm appears to
be failing, or appears likely to fail, to satisfy the threshold conditions relating to
one or more, or all, of its regulated activities.

18.
EG 8.5(1)(b) specifies that the Authority will consider exercising its own-initiative
power under section 55J(1)(a) or 55L(2)(a) of the Act, where the firm appears not
to be a fit and proper person to carry on a regulated activity because it has
breached requirements imposed on it by or under the Act (including Principles and
rules) and the breaches are material in number or individual seriousness (EG
8.5(1)(b)(iii)).

Use of the own-initiative powers in urgent cases

19.
EG 8.6 states that the Authority may impose a variation of permission so that it
takes effect immediately or on a specified date if it reasonably considers it

necessary for the variation to take effect immediately (or on the date specified),
having regard to the ground on which it is exercising its own-initiative powers.

20.
EG 8.7 provides the circumstances in which the Authority will consider exercising
its own initiative power as a matter of urgency, include where the information
available to it indicates serious concerns about the firm or its business that need to
be addressed immediately (EG 8.7(1)).

21.
EG 8.8 sets outs out a non-exhaustive list of factors the FSA will consider in
exercising its own-initiative power as a matter of urgency. EG 8.8(1) specifies that
the FSA will consider urgent own-initiative action if there is information indicating a
significant loss, risk of loss or other adverse effects for consumers, where action is
necessary to protect their interests.

22.
EG 8.9 sets out the factors which will determine whether the urgent exercise of the
FSA’s own-initiative power is an appropriate response to serious concerns,
including: the extent of any consumer loss or risk of consumer loss or other
adverse effect on consumers (EG 8.9(1)) and the extent to which customer assets
appear to be at risk (EG 8.9(2)).