The UK Financial Conduct Authority (FCA) has issued a supervisory notice as to Frensham Wealth Limited.
The regulator explains that it has decided to vary the permission granted to Frensham Wealth Limited pursuant to Part 4A of the Act, by removing all regulated activities from the firm with immediate effect. Accordingly, the Firm’s Part 4A permission no longer includes the regulated activities of:
- advising on investments (except on Pension Transfers and Pension Opt Outs);
- arranging (bringing about) deals in investments;
- making arrangements with a view to transactions in investments;
- advising on a home reversion plan;
- advising on regulated mortgage contracts;
- arranging (bringing about) a home reversion plan:
- arranging (bringing about) regulated mortgage contracts;
- making arrangements with a view to a home reversion plan;
- credit broking;
- advising on Pension Transfers and Pension Opt Outs;
- advising on P2P agreements; and
- agreeing to carry on a regulated activity.
The Authority has further decided to impose on Frensham Wealth Limited with immediate effect several requirements. The firm must by 4.00 p.m. on 6 December 2021 notify in writing all customers of the variation of the Firm’s permission and confirm to the Authority that it has done so.
In addition, the firm must by 4.00 p.m. on 6 December 2021 either update its website http://www.frenshamwealth.co.uk to state that it does not have permission to conduct any regulated activities, or remove its website from the internet, and (in either case) confirm to the Authority that it has done so.
Finally, the firm must secure and preserve all records and/or information (physical or electronic) relating to all business or transactions involving the carrying on of one or more regulated activities which the firm is or has been permitted to carry on from its systems in their original form, or in a copy proved to be identical to the source material. These must be retained in a form and at a location within the United Kingdom, to be notified to the Authority in writing by 6 December 2021, such that they can be provided to the FCA, promptly on its request.
The FCA has serious concerns about the firm. It considers that the firm is failing, or is likely to fail, to satisfy the Suitability Threshold Condition and the Appropriate Resources Threshold Condition.
The regulator also considers that the action is desirable in order to advance its operational objectives of securing an appropriate degree of protection for consumers (section 1C of the Act) and protecting and enhancing the integrity of the UK financial system (section 1D of the Act). The Firm’s sole director and SMF holder has been prohibited by the Authority from performing any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm and the Firm does not have any person performing SMFs and managing its affairs.
As a result, the Authority considers the Firm poses a risk to consumers and to confidence in the integrity of the UK financial system.