Verus Financial Services Limited

Limits on what they may do

• Unable to recommended non-standard investments to retail clients

  Verus Financial Services Ltd (the Firm) applies under section 55L(5)(a) of the Financial Services and Markets Act 2000 (FSMA) for the Financial Conduct Authority (the FCA) to impose the following requirement (the “Requirement”) on the Part 4A permission of the Firm as set out in the terms below. Cease recommending non-standard investments to retail consumers: Immediately cease all regulated investment activities involving nonstandard assets, including where such assets are included in a DFM or other form or portfolio/layering. For the avoidance of doubt, non-standard assets are any assets which the FCA considers not to be a standard asset. To be classed as a standard asset, an asset must appear on the FCA’s list of standard assets contained in IPR INV 5.9.1R and must be capable of being accurately and fairly valued on an ongoing basis and readily realised within 30 days, whenever required. Effective date The Requirement in this application is to take immediate effect on its acceptance by the FCA and notification of such to the Firm by email. The Requirement(s) will stay in effect until the FCA is satisfied that it can be lifted.

• Variation of permission

  1.2 The Authority has decided that the Requirements and the Variation will come into immediate effect. The Authority has decided to vary the Part 4A permissions granted to the Firm by removing all regulated activities for those to which the permission relates.

• Assets Requirement

  1.4 Unless permitted by paragraph 1.5 below, the Firm must not, without the prior written consent of the Authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets and any funds it holds for, or to the order of, its customers (whether in the United Kingdom or elsewhere). 1.5 Paragraph 1.4 above does not apply to monetary payments or the disposal of assets made by the Firm in the ordinary and proper course of business, amounting to no more than £1000 whether as a single transaction or a combination of related transactions (or £3,000 in the case of legal expenses). 1.6 For the avoidance of doubt, for the purposes of paragraph 1.5 above, the following would be in the ordinary course of business: 1. any and all fees incurred or paid in exchange for professional advisory services. 2. any amounts due to be paid to creditors (other than creditors listed in paragraph 1.7(2) below) for sums incurred prior to the imposition of the cancellation of permission and requirements, including but not limited to suppliers’ fees and sums owing to HMRC. 3. any income or sums collected and received by the Firm on behalf of any third parties, and which are to be paid to such third parties (other than any third party that is also identified at sub-paragraph 1.7(2) below) 1.7 For the avoidance of doubt, for the purposes of paragraph 1.5 above, the following payments would not be regarded as payments made in the ordinary course of business: 1. the making of any capital distribution to the Firm’s shareholders whether by way of capital distribution or dividends. Payments of unusual or significant amounts to the Firm’s controllers, shareholders, directors, officers, employees or any connected persons; 2. any payment to directors, officers, employees, and/or any connected entities or persons; 3. the making of any gift or loan by the Firm to any party; or 4. the entry into any financial reconstruction, sale of any part of the Firm (whether share or asset based) or reorganisation. 1.8 Sub-paragraphs 1.4 to 1.7 are assets requirements within the meaning of section 55P(4)(a) of the Act.

• Records Retention

  1.9 The Firm must secure and preserve all records and/or information (physical or electronic) relating to its business, including payment, electronic money and digital services in their original form, or in a copy, provided it is 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 5pm on Friday 31 October 2025, such that they can be provided to the Authority, or a person named by the Authority, promptly on its request. 1.10 The Firm must provide written confirmation to the Authority that it is complying with the Variation and the Requirements by Friday 31 October 2025.

• Notification requirements

  1.11 By close of business on Friday 31 October 2025, the Firm must publish in a prominent place on every website in its name (or that it operates) in a form to be agreed in advance with the Authority, a notice setting out the terms and effects of the Variation and the Requirements. 1.12 The Firm must as soon as possible, and by no later than close of business on Friday 31 October 2025, notify all its current customers in writing of the imposition of the terms and effects of the Variation and the Requirements. This must be in a form to be agreed in advance with the Authority. 1.13 Once the notifications referred to in sub-paragraphs 1.8 and 1.9 have been made, the Firm must provide to the Authority within 24 hours: (i) copies of the template notifications sent to all recipients referred to in sub-paragraph (1.9); (ii) a list of all parties to whom notifications have been sent pursuant to sub-paragraph (1.9); and (iii) confirmation that, to the best of its knowledge, the Firm has sent notification pursuant to sub-paragraph (1.9) to all relevant parties. 1.14 The Firm must as soon as possible, and by no later than close of business on Tuesday 4 November 2025 notify all its current customers in writing of the imposition of the terms and effects of the Variation and the Requirements. This must be in a form to be agreed in advance with the Authority. 1.15 The 2023 VREQ will be superseded by the operation of Requirements 1.3 to 1.5 above. 1.16 The Requirements shall take immediate effect and remain in force unless and until varied or cancelled by the Authority (either on the application of the Firm or of the Authority’s own volition).