Context
The FCA have cancelled the permissions of Stratton Leasing Limited due to breaches of the suitability and appropriate resources Threshold Conditions, and also for not being open and co-operative with the FCA (Principle 11) in the consumer credit sector.
Key points to note
Following a review of Stratton’s Senior Management Functions, the FCA sent correspondence to Stratton noting that the firm did not have an accountable individual registered to hold the SMF29 (Limited Scope Function). Stratton failed to co-operate by not responding adequately, or at all, to the FCA’s repeated requests for the firm to complete and submit a Form A. As a result, no individuals are approved to perform the functions relevant to the activities that Stratton seek to carry out.
By failing to seek approval to appoint an appropriate individual, the FCA are not satisfied that Stratton has appropriate non-financial resources. This failure is a result of Stratton to failing to comply with Principle 11 (dealing with regulators in an open and cooperative way) and has led to the failure to satisfy the suitability Threshold Condition – the Authority is not satisfied that Stratton Leasing Limited is a fit and proper person having regard to all the circumstances. As a result of Stratton’s failure to be open and co-operative, the Authority is not satisfied that Stratton’s business is being managed as to ensure that’s its affairs will be conducted in a sound and prudent manner.
Next actions
None – for information and awareness.