Context
The FCA has published a First Supervisory Notice sent to MRA Property Investments Limited. The FCA considers that the firm is failing, or likely to fail, to meet the Appropriate Resources, the Suitability and the Effective Supervision Threshold Conditions. As a result of the issues outlined in the Notice, the FCA considers that the firm cannot be effectively supervised, nor can the Authority be satisfied that it has appropriate financial resources or is suitable.
Key points to note and next actions
- The FCA has serious concerns that monies invested via the firm, from its customers, may not be being used for their intended purpose. The FCA has sought an explanation from the firm about this matter and in relation to transactions between the Firm’s bank accounts and what appear to be accounts belonging to the firm’s sole director and senior management function holder.
- The firm has repeatedly failed to respond to requests for information relating to these matters, despite them being evidently material to the Authority and to the Firm’s customers.
- The firm has repeatedly failed to respond to requests for information from the FCA, including failing to respond to an information requirement issued under section 165 of the Act.
- The FCA is not satisfied that the firm is being managed in a way that ensures that its affairs are conducted in a sound and prudent manner and has serious concerns as to whether the firm is a ‘fit and proper person’.
- The FCA is concerned that the Firm does not have the appropriate non-financial resources on the basis that its Director is not responding to requests for information by the FCA and others.