FCA strips broker of permission

FCA strips broker of permission




A credit broker has had his interim permission cancelled by the FCA.

A credit broker has had his interim permission cancelled by the FCA after failing to satisfy its  suitability threshold…

Paul Rogers, (Interim Permission Ref No.620376), sole trader at Northeastern Unit 8, Vroom Car Retail Park, Orion Business Park, North Shields, has decided to refer the case to the Upper Tribunal which will review the decision and take appropriate action.

The FCA ban was connected to a disqualification undertaking handed to him in 2010, following his failures as a Director of a car sales and services company, which entered liquidation in 2008.

The facts and terms of the disqualification led the authority to deem that on the balance of probabilities Mr Rogers is not a fit and proper individual and may not be expected to act with probity.

Mr Rogers received an interim permission on the 1st April 2014 which authorised him to trade in credit broking, however In December 2010, Mr Rogers gave a disqualification undertaking to the Secretary of State, which as a result, prevented him from acting as a company Director for five years.

In the 2010 disqualification, Mr Rogers admitted: “I failed to ensure that [the company] maintained and / or preserved adequate accounting records or alternatively failed to deliver them up to the Joint Liquidators, despite repeated requests that I should do so.”

One of the outcomes of these accounting failures included the inability to explain how a £2.6 million trading loss occurred from the last financial accounts in July 2006 to the date of liquidation in September 2008.  

The FCA found that the disqualification undertaking alone gave rise to serious concerns that Mr Rogers did not act and may not be expected to act with integrity. 

Mr Rogers claimed that he had nothing to do with the insolvency of the company and relied on the company secretary to keep adequate records.

The authority, however, concluded that on the balance of probabilities, Mr Rogers was not fit and proper to hold interim permissions.


 

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