June 25, 2024
News

FCA cracks down on firms for failing to comply with regulations

Reid Motor Group Licence Revoked

The Financial Conduct Authority (FCA) has revoked Reid Motor Group Limited’s Part 4A permission, effectively prohibiting the company from conducting any regulated activities. This decision comes after the firm failed to comply with multiple regulatory requirements.

Reid Motor Group, authorised by the FCA since April 2015 for consumer credit business including credit broking and debt counselling, has not conducted any regulated activity recently. The FCA’s investigation revealed several compliance failures, including non-payment of periodic fees and levies, and the failure to submit mandatory financial returns.

Reid Motor Group did not pay invoices totalling £942.21 for periodic fees and levies due between 2018 and 2022. Additionally, the firm did not submit required returns, such as the CCR007 reports and the Firm Details Attestation (FDA), on time.

On 8 April 2024, the FCA issued a notice to Reid Motor Group, indicating that the firm was not engaging in any regulated activities and warned of potential action. Despite this, Reid Motor Group did not respond. A further notice issued on 1 May 2024 reiterated the FCA’s concerns and specified steps the firm needed to take to avoid cancellation of its permission. Again, the firm failed to comply.

As a result, the FCA decided to cancel Reid Motor Group’s Part 4A permission effective 28 May 2024. This means Reid Motor Group can no longer conduct any activities that require FCA authorization.

Vertu Automotive Licence Cancelled

The FCA has revoked Vertu Automotive Ltd’s Part 4A permission, effectively barring the company from conducting any regulated activities. This decision follows Vertu Automotive’s failure to engage in regulated activities and comply with essential regulatory obligations.

Vertu Automotive Ltd, authorized by the FCA since June 2019, held permissions to carry out consumer credit activities, including credit broking and debt counselling. However, the firm has not been active in any of these regulated activities. Additionally, the FCA identified several compliance failures, including the non-payment of periodic fees and levies and the failure to submit mandatory financial returns.

Vertu Automotive failed to pay two invoices for periodic fees and levies: one dated 13 October 2020 for £160.33 and another dated 21 September 2022 for £408.24. The firm also did not submit required returns, such as the CCR007 reports for the periods between 1 June 2020 and 31 May 2023, and the Firm Details Attestation (FDA).

On 4 April 2024, the FCA issued a notice to Vertu Automotive, indicating the absence of regulated activities and warning of potential action unless the firm responded. Despite this, Vertu Automotive did not respond. A subsequent notice on 1 May 2024 reiterated the FCA’s concerns and specified steps to avoid the cancellation of its permission. Again, the firm failed to comply.

Consequently, the FCA canceled Vertu Automotive’s Part 4A permission effective 29 May 2024. This means Vertu Automotive is no longer authorized to conduct any activities requiring FCA authorization.

Best Contract Cars Loses Licence

The FCA has revoked the Part 4A permission of Best Contract Cars LTD, effective immediately. The company, registered under FRN 713398, is no longer authorized to carry on any regulated activities.

The FCA determined that Best Contract Cars LTD has not been engaged in any regulated activities to which its Part 4A permission relates. Key issues include non-payment of fees and failure to submit required returns.

The firm failed to pay periodic fees and levies amounting to £769.07 by the due date of 7 September 2023. Additionally, the company did not submit the required CCR007 returns for periods between 1 September 2021 and 31 August 2023, violating several rules under the FCA’s Supervision Manual (SUP). Best Contract Cars LTD also failed to submit the Firm Details Attestation (FDA) by the relevant due date.

The FCA issued a notice on 23 February 2024, indicating the firm appeared to be inactive in terms of regulated activities. The notice warned of the potential cancellation of their Part 4A permission. A further notice on 26 April 2024 reiterated the FCA’s concerns and proposed cancellation unless specific steps were taken by the firm. With no response or corrective action from the firm, the FCA proceeded with the cancellation on 29 May 2024.

Best Contract Cars LTD can apply for an annulment of this decision by 28 May 2025. However, the firm has no right to refer the decision to the Upper Tribunal (Tax and Chancery Chamber).

Murray Motors Belfast Licence Revoked

The FCA has revoked the Part 4A permission of Murray Motors (Belfast) Limited, effective 29 May. The decision follows the firm’s failure to engage in any regulated activities and non-compliance with several regulatory requirements.

The FCA determined that Murray Motors is not conducting any regulated activities under its Part 4A permission, which includes credit broking, debt adjusting, and debt counseling. The firm failed to pay periodic fees and levies due to the FCA and did not submit necessary regulatory returns and attestation reports, as required under the FCA’s Handbook.

Murray Motors has not engaged in any of the regulated activities it was authorized for between 1 July 2021 and 30 June 2022. The firm failed to pay invoices for periodic fees and levies amounting to £305.30 and £766.48, which were due in January 2022 and October 2022, respectively. Required regulatory returns and firm details attestation (FDA) were not submitted by the firm, breaching multiple provisions in the FCA’s Supervision Manual (SUP).

The FCA issued an initial notice on 5 March 2024, followed by a further notice on 26 April 2024, indicating the potential cancellation of the firm’s Part 4A permission due to inactivity and non-compliance. Murray Motors failed to respond or take corrective actions as specified in the notices.

The cancellation of the firm’s Part 4A permission is effective immediately, meaning Murray Motors can no longer conduct any regulated activities.




FAQ

Here are some frequently asked questions about the revocation of licenses by the FCA:

  • Q: What is the consequence of having your Part 4A permission revoked by the FCA?
  • A: When the FCA revokes a company’s Part 4A permission, it means the company is no longer authorized to conduct regulated activities, effectively ceasing its operations in that realm.
  • Q: Can a company appeal the FCA’s decision to revoke its license?
  • A: In some cases, a company may have the option to apply for an annulment of the decision within a specified timeframe.

Conclusion

In conclusion, the FCA’s actions in revoking the licenses of Reid Motor Group, Vertu Automotive, Best Contract Cars, and Murray Motors highlight the importance of compliance with regulatory requirements in the financial services industry. Failure to meet these obligations can lead to severe consequences, including the prohibition of conducting regulated activities. It is crucial for firms to adhere to the guidelines set forth by regulatory bodies to maintain operational integrity and trust within the industry.

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