FINAL NOTICE

1.
For the reasons listed below and pursuant to Regulation 10(1)(h) (as applied by
Regulation 14) of the Payment Services Regulations 2009 (“the PSR”), the
Authority has decided to cancel the registration granted to Westwind UK Limited
(“Westwind”), as a small payment institution under the PSR (“Westwind’s
registration”).

2.
The Authority gave Westwind a Decision Notice on 8 May 2013 (“the Decision
Notice”) which notified Westwind that for the reasons given below and pursuant
to Regulation 10(1)(h) of the Payment Services Regulations 2009 (“the PSR”),
the Authority had decided to cancel the registration granted to Westwind as a
small payment institution under the RSR.

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

4.
Accordingly, the Authority has today cancelled Westwind’s registration as a small
payment institution.

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

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

REASONS FOR THE ACTION

6.
On the basis of the facts and matters and conclusions described in the Warning
Notice dated 28 March 2013 (“the Warning Notice”), and in the Decision Notice,
the Authority has concluded that Westwind has failed to pay fees and levies
totalling £460.00 owed to the Authority, (which were due to be paid by 29 July
2012), and to respond adequately to the repeated requests from the Authority
that it does so. These failings lead the Authority to conclude that Westwind has
failed to demonstrate a readiness and willingness to comply with its ongoing
regulatory obligations and to deal with the Authority in an open and co-operative
way. Therefore it is desirable to cancel Westwind’s registration as a small
payment institution in order to protect the interests of consumers, in accordance
with Regulation 10(1)(h) of the PSR (as applied by Regulation 14).

RELEVANT STATUTORY PROVISIONS

7.
The statutory and regulatory provisions relevant to this Final Notice are set out in
the Annex.

DECISION MAKER

8.
The decision which gave rise to the obligation to give this Final Notice was made
by the Regulatory Decisions Committee.

IMPORTANT

9.
This Final Notice is given to Westwind in accordance with section 390(1) of the
Act (as applied by paragraph 7(b) of Part 1 of Schedule 5 to the PSR).

10.
Section 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 7(c) of
Part 1 of Schedule 5 of the PSR) apply to the publication of information about the
matter to which this Final Notice relates. Under those provisions, 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 Westwind or prejudicial to the interests of consumers.

11.
The Authority intends to publish such information about the matter to which this
Final Notice relates as it considers appropriate.

Authority contact

12.
For more information concerning this matter generally, Westwind should contact
Roger Hylton at the Authority (direct line: 0207 066 8168).

John Kirby
Enforcement and Financial Crime Division


ANNEX

RELEVANT STATUTORY PROVISIONS

1.
Section 1A(1) of the Act states that the body corporate previously known as the
Financial Services Authority is renamed as the Financial Conduct Authority.


2.
Regulation 14 of the Payment Services Regulations 2009 (“the PSR”) states:

“Regulations 7 to 11 apply to registration as a small payment institution as
they apply to authorisation as a payment institution…”

3.
Under Regulation 10(1)(h) (as applied by Regulation 14) of the PSR, the
Authority may cancel the registration of a small payment institution if the
cancellation is desirable in order to protect the interests of consumers.

Fees and levies owed to the Authority

4.
Regulation 92(1) of the PSR states:

“The functions of [the Authority] under these Regulations are to be treated
for the purposes of paragraph 23 Schedule 1ZA (fees) to the 2000 Act as
functions conferred on [the Authority] under that Act…”

5.
Paragraph 23(1) of Schedule 1ZA to the Act states:

“[The Authority] may make rules providing for the payment to it of such
fees, in connection with the discharge of any of its qualifying functions, as
it considers will (taking account of its expected income from fees and
charges provided for by any other provision of this Act) enable it-

(a)
to meet expenses incurred in carrying out its functions or for any
incidental purpose; […]”

RELEVANT HANDBOOK PROVISIONS

6.
In exercising its power to cancel the registration of a small payment institution,
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 Rules and Guidance

7.
The rules and guidance relating to the payment of fees and levies are located in
the FEES Manual which forms part of the Handbook. From 1 April 2013, some of
the rules and guidance relevant to this matter were amended. The rules and
guidance relevant in this case are set out below.

8.
FEES 4.2.1R requires that:

“A person shown in column (1) of the table in FEES 4.2.11 R as the
relevant fee payer must pay each periodic fee applicable to it, calculated in
accordance with the provisions referred to in column (2) of that table, as
adjusted by any relevant provision in this chapter:

(1)
in full and without deduction (unless permitted or required by a
provision in FEES); and

(2)
on or before the date given in column (3) of that table, unless FEES
4.2.10 R applies.”

9.
FEES 4.3.1R states that:

“The periodic fee payable by a firm (except an ICVC or a UCITS qualifier)
is:

(1)
each periodic fee applicable to it calculated in accordance with FEES
4.3.3 R, using information obtained in accordance with FEES 4.4;
plus

(1A)
any periodic fee applicable to it calculated in accordance with FEES
4.3.3A R using information relating to its UK business obtained in
accordance with FEES 4.4 (or by other means in the case of the
Bank of England); less

(2)
any deductions from the periodic fee specified in Part 2 of FEES 4
Annex 2 R or Parts 6 and/or 7 of FEES 4 Annex 11 R. For the
purposes of this deduction, any deduction available in Part 2 of
FEES 4 Annex 2 R shall not be applied to any fee calculated in
accordance with FEES 4.3.3A R and any deduction available in Part
6 and/or 7 of FEES 4 Annex 11 R shall not be applied to any fees
calculated in accordance with FEES 4.3.3 R.”

10.
FEES 4.3.3 AR states that:

“The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying
payment service providers and fee-paying electronic money issuers is
calculated in accordance with 1R.”

11.
FEES 5.7.1R (effective until 31 March 2013) requires that:

“A firm must pay annually to [the Authority] the general levy on or before
the later of 1 April and 30 calendar days after the date when the invoice is
issued by [the Authority].”

13.
FEES 7.2.1R requires that:

“A firm must pay each CFEB levy applicable to it:

(1)
in full and without deduction (unless permitted or required by a
provision in FEES); and

(2)
in accordance with the provisions of FEES 4.3.6 R as modified by
FEES 7.2.1A R.”

OTHER RELEVANT REGULATORY PROVISIONS

14.
The Authority’s policy in relation to exercising its enforcement powers is set out in
the Enforcement Guide (“EG”), the relevant provisions of which are summarised
below.

16.
EG 19.91 provides that the Authority’s approach to enforcing the PSR will mirror
its general approach to enforcing the Act.

18.
EG 19.93 provides that, in relation to the PSR, the Authority has decided to adopt
procedures and policies, in relation to the use of its sanctioning and regulatory
powers, akin to those it has under the Act. The types of circumstances in which
the Authority will consider cancelling a firm’s Part 4A permission under the Act
include failure to pay fees and levies owed to the Authority.