Financial Crime World

Directive: Services to Types of Customers Specified

The Financial Services Authority (FSA) has issued a directive outlining the requirements for services provided to specific types of customers. The directive aims to ensure that financial institutions provide adequate and suitable services to their clients.

Licensing Requirements

To provide services to specified customer groups, any applicant must apply for a licence from the FSA. The Authority will assess each application within six months of receipt, unless additional information is required or if the application does not comply with regulatory requirements.

  • If an application is deemed incomplete or non-compliant, the FSA may request further information.
  • If no decision is made within the specified timeframe, the Authority may deem the application abandoned.
  • The FSA may grant a licence with conditions, refuse an application, or deem it abandoned if no decision is made within the specified timeframe.

Restrictions on Licences

If a licence is granted, the FSA may impose restrictions to ensure compliance with regulatory requirements. These restrictions may include:

  • Requirements for officer removal
  • Shareholding divestiture
  • Prohibitions on specific transactions or classes of business
  • Conditions on business operations

The Authority will notify the licensed entity in writing of any intended restrictions and provide a period for representations.

Review Process

Any aggrieved party may seek review of an FSA decision regarding licence conditions, restrictions, revocation, or other matters. The review process does not suspend the operation of the original decision.

  • Upon review, the FSA may confirm, reverse, or vary its original decision and take necessary action to implement a new decision.
  • The Authority may also require witness attendance, document production, or payment of costs and expenses by parties involved in the review.

Publication of Decisions

The FSA will publish decisions on licence restrictions or revocation, as well as any public statements deemed necessary for public interest purposes.

By issuing this directive, the Financial Services Authority aims to ensure that financial institutions provide high-quality services to their clients while maintaining regulatory compliance.