The FCA has published a decision notice setting out its intention to refuse to authorise an applicant firm Ancean Limited, whose sole director and proposed sole approved person would be an individual who was previously chief executive of SVS Securities plc. In that capacity, he had created a financial structure that enabled pension funds SVS managed to be invested in a property bridge lending company owned by him, thus creating a significant conflict which the firm failed to manage appropriately. He had also created a structure to disguise the use of the funds, given that bridge lending is not generally a suitable investment for pension funds and had provided misleading responses to a SIPP operator who asked about the arrangements. He had also allowed the firm to operate at a loss. The FCA considered, therefore, that he has not acted, and may not be expected to act, with probity and that, therefore, a firm under his control would not be likely to meet the Suitability Threshold Condition. The firm is appealing the decision to the Tribunal.
