FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a further AR within 28 days.
FCA says the firm does not meet the Threshold Conditions for adequate resources and suitability because the firm:
- does not have the appropriate non-financial resources to properly monitor and enforce compliance by its ARs
- has failed adequately to assess the business of the ARs in order to sufficiently identify and mitigate the risks their activities pose to customers
- has failed to implement adequate policies and procedures in relation to oversight of its ARs;
- has not properly overseen and conducted ongoing monitoring of its ARs
- has not had adequate controls over its AR’s regulated activities – it did not terminate registrations that had been inactive for over 12 months and did not ensure an appropriate Director and approved person was appointed at the active AR
- had myriad failings in its onboarding systems and controls and
- could not show it conducts, or will conduct, its affairs with due skill, care and diligence.
The notice gives examples of where due diligence was lacking and the failures in supervision.