FCA First Supervisory Notice to Marvell Enterprises Limited
What is happening?
In a First Supervisory Notice issued in November 2021, the FCA announced the variation with immediate effect the Part 4A permission granted to Marvell Enterprises Ltd by removing the regulated activities of Secondary credit broking1, and Agreeing to carry on a regulated activity.
1 that is, effecting an introduction of an individual who wishes to enter into a credit agreement to another credit broker
The effect of this is that Marvell no longer has permission to conduct any regulated activities.
What do you need to do?
The FCA has chosen to exercise its power to vary Marvell’s permission because the firm is failing, or is likely to fail, to satisfy the Suitability Threshold Condition. The action is also desirable in order to advance the FCA’s operational objective of securing an appropriate degree of protection for consumers.
The FCA has identified serious concerns relating to Marvell; in particular that:
• The firm appears to have been engaging in investment-related activities and thus to have been acting outside the scope of its Part 4A permissions; the activities appear to be very different to those of a credit broker,
• The firm appears to have been advising on and arranging investments (its own bonds and loan notes). Its communications with consumers regarding investments contain numerous misleading statements which appear designed to give false comfort to investors about the level of protection their investments would receive,
• The firm appears to have successfully persuaded some individuals to invest substantial sums with it,
• Materials produced by the firm bear striking similarities to marketing material produced by another firm with credit broking permissions to which the FCA issued a First Supervisory Notice on 2 August 2021 due to concerns about similar misconduct,
• Information placed by the firm on its website regarding its SMF function holder is inconsistent with material provided to the FCA regarding the same individual, and
• The firm appears to have failed to provide the FCA with up to date up-to-date contact details, as postal copies of Information Requirements have been returned to sender and the firm’s phone line (as shown on the FCA’s Register) does not seem to be connected. The firm’s email responses to Information Requirements are inconsistent with the evidence of consumers.
The FCA considers that this variation should take immediate effect because the firm is not fit and proper. The FCA considers that the firm is not conducting its affairs in an appropriate manner having regard to the interests of consumers, nor is it complying with requirements imposed by the FCA. The firm also appears to be connected to another firm subject to a recent First Supervisory Notice due to similar misconduct.
How can we help you?
If you’d like to know more about how we can help you with your credit compliance broking permissions or the issue of bonds or loan notes, or with any other regulatory compliance issues, our expert team is here to help. Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.