Colbourne & Company

Limits on what they may do

• Business Restrictions

  a) Colbourne must immediately cease carrying on all regulated activities for which it has a Part 4A permission, other than where it has the express written consent of the Authority, given subsequent to this FSN, to carry on said activities; b) Colbourne must immediately cease carrying on all regulated activities for which it does not hold a Part 4A permission. This means that Colbourne is not permitted to provide investment advice to, or arrange deals in investments for, retail clients. For the avoidance of doubt, Colbourne is not permitted to conduct any other regulated activities which fall outside its Part 4A permission, in addition to the requirement at (a) above that it immediately cease carrying on all regulated activities for which it does hold a Part 4A permission; c) Colbourne must immediately cease invoicing for or collecting all charges, fees and commissions for regulated activities it has carried out for ‘Retail (Investment)’-type customers (those that were removed from its Part 4A permission on 22 November 2014), or with whom it is otherwise not authorised to deal; d) Colbourne must not on-board any new customers;

• Notification Requirements

  e) Colbourne must, within 72 hours of the receipt of this notice write to (i) all clients and; (ii) all platforms upon which its clients are placed informing them of the imposition of this requirement and its effects. The wording of this communication in the form of a template communication that will be supplied by the Authority. The method of delivery must be agreed in advance by the Authority; f) Once the notifications referred to in (e) above have been made, within 24 hours, Colbourne must supply to the Authority: i. Copies of the template notification sent to all recipients; ii. A list of all parties to whom notifications have been sent; and iii. Confirmation that, to the best of its knowledge, Colbourne has sent the specified notifications to all relevant parties

• Record Retention

  g) Colbourne must secure all books and records and preserve all information, including material held via online/cloud-based systems to which the Firm has access, in relation to regulated activities carried on by it and, in addition, regulated activities carried out for or in relation to customers with whom it is not authorised to deal. These include but are not limited to all: (i) all client lists; (ii) all communications with clients; (iii) all financial records. These books and records must be retained in a form and at a location within the UK to be notified to the Authority within 24 hours of the receipt of this notice. The records must be retained in a form and at a location such that they can be provided to the Authority, or to a person named by the Authority, promptly upon its request;

• Asset Requirement

  h) Save as set out in sub-paragraph (j) below, Colbourne must not, without the prior written consent of the Authority, take any action which has, or may have the effect of in any way disposing of, withdrawing, transferring, dealing with or diminishing the value of any of its own assets. whether in the United Kingdom or elsewhere; i) For the avoidance of doubt (h) means, in particular (though the contents of this sub-paragraph do not represent the full extent of (h), merely an example of how the Asset Requirement operates) that save as permitted by (j) below, Colbourne must not in any way diminish or transfer the funds in the accounts Colbourne holds with Bank A, with account numbers ending [575] and [339]; j) The Assets Restriction does not apply to monetary payments or the disposal of assets in the following circumstances: i. Payments to the Firm’s suppliers and in satisfaction of the Firm's contractual obligations in the ordinary course of business where the supplier and contractual obligation been notified to and approved by the Authority, subsequent to the imposition of this FSN; ii. Payments to legal advisors; iii. Where the Firm can demonstrate to the Authority’s satisfaction that a particular account which may contain a mix of Firm and personal funds is used to pay necessary living expenses (such as mortgage payments etc) then the payment of a list of those expenses, to be agreed in writing with the Authority; iv. Monthly withdrawals from the [575] account of amounts equivalent to state benefits and pension payments received during that period to which any person who uses the account to receive such payments is entitled; and v. Payments of redress, where the individual or entity to receive payments has been approved in writing by the Authority subsequent to this notice. k) The following will not be regarded as payments in the ordinary course of business or necessary living expenses: i. Payment of any unusual or significant sum (meaning in excess of £100 whether as a single transaction or combination of transactions) to either individual who is a signatory on the [575] or [339] account and any person connected with them; ii. The making of any capital distribution; iii. The making of any gift, loan, or dividend; iv. The sale or other disposal of the Firm’s client book; v. Salaries to any of Colbourne’s employees the payment of which has not been approved in writing by the Authority l) The terms and effect of (h)-(k) above comprise an asset requirement within the meaning of Section 55P(4)(a) of the Act.