FSA cancels Derby-based IFA after bankruptcy ruling
Regulator cancels sole trader’s permissions as it does not have “adequate human resources nor a competent and prudent management”.
Derby-based Darley Independent Financial Advisers has been issued with a first supervisory notice from the regulator cancelling its permissions to carry on regulated business, following the sole trader and managing director declaring herself bankrupt.
Leanne Marie Nicholson, sole director of Darley, controller and sole approved person of Darley, was declared bankrupt on 20 March 2012 in the Derby County Court, according to a supervisory notice published on the FSA website.
The bankruptcy followed a petition lodged by a customer of Darley, from whom Ms Nicholson was said to have obtained a substantial personal loan which had not been repaid, the FSA said.
Darley was granted authorisation by the FSA on 25 October 2007 to conduct investment business and on 3 June 2008 was also permitted to act as mortgage intermediary.
The Financial Services Authority said it is no longer satisfied that Darley has adequate human resources and is therefore no longer can therefore no longer satisfy the FSA that it is fit and proper to conduct regulated activities as required.
The actions follows the issuance of a warning notice, dated 25 May, to Ms Nicholson to withdraw her approved person status.
In a statement, the FSA said: “In the opinion of the FSA, Darley’s resources are not adequate in relation to the regulated activities it has permission to carry on and Darley can no longer satisfy the FSA that it is fit and proper to conduct regulated activities as it does not have a competent and prudent management.”