ASHRAF WEALTH MANAGEMENT LIMITED v THE FINANCIAL CONDUCT AUTHORITY [2024] UKUT 00265 (TCC)

JurisdictionUK Non-devolved
JudgeJudge Mark Baldwin,tribunal members Mr Charles Farquharson,Martin Fraenkel
CourtUpper Tribunal (Tax and Chancery Chamber)
Published date02 September 2024
Neutral Citation: [2024] UKUT 00265 (TCC) Case Number: UT-2023-000032
UPPER TRIBUNAL
(Tax and Chancery Chamber)
Hearing venue: The Rolls Building, London
FINANCIAL SERVICES decision by the Authority not to authorise the Applicant to carry out
regulated activities on the basis that the Applicant would not satisfy and continue to satisfy the
threshold conditions for authorisation as required by section 55B(3) of the Financial Services
and Markets Act 2000 whether the decision one which was reasonably open to the Authority
yes reference dismissed
Heard on: 5, 6 and 17 June 2024
Judgment date: 02 September 2024
Before
JUDGE MARK BALDWIN
MR. CHARLES FARQUHARSON
MR. MARTIN FRAENKEL
Between
ASHRAF WEALTH MANAGEMENT LIMITED Applicant
and
THE FINANCIAL CONDUCT AUTHORITY The Authority
Representation:
For the Appellant: Mr. Gareth Fatchett of FS Legal Solicitors LLP
For the Respondents: Mr. Simon Jones of counsel, instructed by the Financial Conduct
Authority
1
DECISION
INTRODUCTION
1. On 10 April 2023 the Applicant referred (“the Reference”) to this Tribunal a decision
(“the Decision”) of the Authority dated 14 March 2023 refusing the Applicant’s application
(“the Application”) to carry out regulated activities.
2. The Authority refused the Application as it was not satisfied that the Applicant, if
authorised, would satisfy and continue to satisfy the threshold conditions as required by section
55B(3) of the Financial Services and Markets Act 2000 (“FSMA”).
3. The core of the reasoning behind the Decision centres on Mr. Murtaza Imran Ashraf
(“Mr. Ashraf”). Mr. Ashraf is, along with Mrs Saaima Tasleem Ashraf (“Mrs Ashraf”), one of
two shareholders of the Applicant. Mr. Ashraf is additionally the only proposed advisor at the
Applicant. In the Authority’s opinion, Mr. Ashraf has not demonstrated that he is a fit and
proper person. Accordingly, in the view of the Authority, the Applicant does not satisfy the
Threshold Conditions of appropriate resources and suitability.
LEGAL FRAMEWORK FOR THE REFERENCE
4. There is no dispute as to the legal framework relevant to the Application, the Decision or
the Reference, which we summarise below.
5. By section 55A FSMA, an application to carry on regulated activities must be made to
the appropriate regulator (here, the Authority).
6. By section 55B(3) FSMA, in giving permission to carry out regulated activities, the
appropriate regulator must ensure that the person concerned will satisfy, and continue to
satisfy, in relation to all regulated activities for which the person has or will have permission
the threshold conditions…” .
7. The “threshold conditions” are (by section 55B(1) FSMA) those set out in Schedule 6 of
FSMA. Relevant for these purposes are Threshold Conditions 2D (Appropriate Resources) and
2E (Suitability).
8. As regards Threshold Condition 2D, an applicant’s resources must be appropriate in
relation to the regulated activities that the applicant carries out or intends to carry out. This
specifically involves a consideration of non-financial resources. In particular:
“(4) The matters which are relevant in determining whether A has appropriate
non-financial resources include
(a) the skills and experience of those who manage A's affairs;
(b) whether A's non-financial resources are sufficient to enable A to
comply with
(i) requirements imposed or likely to be imposed on A by the FCA
in the exercise of its functions, or
(ii) any other requirement in relation to whose contravention the
FCA would be the appropriate regulator for the purpose of any
provision of Part 14 of this Act.”
9. In respect of Threshold Condition 2E, an applicant:
“…must be a fit and proper person having regard to al l the circumstances,
including
(a) A's connection with any person;

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