Michael Eaton

Limits on what they may do

• Asset and Regulated Activity Restriction

  Requirement 1 1.1 In relation to its regulated activities: a. the Firm must immediately cease all regulated activities for which the Firm has Part 4A permissions. b. the Firm must not recommence any regulated activities unless it has the FCA’s prior written consent. 1.2 In relation to any pipeline business the Firm must: a. cease to act for any affected client, whether this be a new, existing or proposed client. b. contact product providers to instruct them to put on hold all transactions related to the Firm’s regulated activity, which have not yet been completed. c. contact affected clients to inform them that the Firm cannot complete the business on their behalf. d. in this requirement “pipeline business” refers to any business involving regulated activities undertaken by the Firm where a switch or transfer of funds has been requested, but not completed and “affected client” is any client for whom regulated activity is carried out. Requirement 2 2.1 The Firm must not take any action which has, or may have, the effect of disposing of, dealing with or diminishing the value of any of its assets without the FCA’s prior written consent. 2.2 The Firm must not dispose of, transfer or sell in whole or in part its client base unless it has the FCA’s prior written consent. 2.3 This requirement does not prohibit the Firm from dealing with or disposing of any of its assets (whether in the United Kingdom or elsewhere) in the ordinary and proper course of business. For the avoidance of doubt, the following would not be in the ordinary and proper course of business for these purposes: a. the disposal, transfer or sale in whole or in part of the Firm’s client base; b. the making of any capital distribution; c. the making of any gift or any significant loan by the Firm to any party; d. the entry into any financial reconstruction or organisation; e. take any other action that is outside the scope of the Firm’s ordinary day-to-day business which would have the effect of diminishing the value of its assets. For the avoidance of doubt, Requirement 2 is an asset requirement pursuant to section 55P(4)(a) of the Act.