Warning notice statement 14/10

The Financial Conduct Authority (the FCA) gave an individual a warning notice on 24
March 2014 proposing to take action in respect of the conduct summarised in this
statement.


IMPORTANT: a warning notice is not the final decision of the FCA. The
individual has the right to make representations to the Regulatory Decisions
Committee (RDC) which, in the light of those representations, will decide on
the appropriate action and whether to issue a decision notice. The RDC is a
Committee of the FCA board which decides whether the FCA should give certain
statutory notices described as within its scope by the FCA’s Handbook.

If a decision notice is issued, the individual has the right to refer the matter to
the Upper Tribunal which would reach an independent decision on the
appropriate action for the FCA to take, if any.

If either the RDC or the Upper Tribunal decides that no further action should be
taken, the FCA will publish a notice of discontinuance provided it has the
individual’s consent.

The following is a summary of the reasons why the FCA gave the individual a warning
notice:

•
The FCA considers that the individual, who was a director of an appointed
representative (“AR”) of an FCA-authorised firm, breached Statement of Principle 1
when carrying out the significant influence function of CF1 (Director) of the
authorised principal, with responsibility for the AR.

•
In particular, the FCA considers that the individual:

o
deliberately involved the AR in promoting and arranging certain UCIS, in breach
of its agreement with its principal which did not permit it to conduct UCIS
business; and

o
recklessly devised a structure and participated in a process for promoting and
arranging the UCIS that was likely to provide false assurance to customers and
others that the AR’s involvement was authorised.

•
The FCA considers that the individual’s conduct demonstrates a lack of integrity.