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After going back and forth to the FCA they have now pit it in writing to confirm where they stand when dealing with these BarStewards who conn everyone into unregulated secured loans for business purposes!
Below was angry last email to the FCA
lost the plot. and also their reply.
SOMEONE TELL ME WHY THEY EXIST! WHAT IS THEIR PURPOSE?
Dear Name Removed,
Thank you for your quick response.
I would appreciate it if you could clarify a couple of points in your reply regarding to Unregulated Commercial secured loans.
From what i gather, and i would appreciate it if you could correct me if i am wrong, What you are saying is that, If i were to establish a limited company under companies house and use the line of business as a Mortgage Broker:
1, I can provide contracts for loans and as long as it is stipulated within the contract that it is for commercial use, unregulated and first charge secured, without notifying FCA to register for any type of permission.?
2, If i were to decide to breach this contract for any reason then there will be no remit by the borrower to complain through the FCA or any other organisation and the only method the borrower would have against me to resolve the matter would be that of taking legal action against me.?
3, Hypothetically, should it be the case that i have provided the funds to the borrower by means of illegal activities (which i would never do and would never have any intentions on doing) then i could potentially use that business for money laundering, again without having any concern that the FCA or any other regulatory authorisation would or can investigate it should you receive a complaint from the borrower about the company they borrowed the money from?.
4, As mentioned in my response a (Name Removed) who is an individual from (place removed) has been stated as the lender and is an individual, Are you saying that i dont even have to establish a company to be able to lend money to anyone and the FCA cannot intervene at any stage as long as it is stipulated in the agreement that it is a loan for commercial use, first charge and unregulated?
4, The loan can be classeD as a commercial loan whether the borrower is stated on the loan agreement as an individual or a company name.
I would very much appreciate a response to each point made.
Kind regards,
Name Removed
REPLY FROM FCA
Dear Name Removed
Thank you for your further email dated 13 August 2014 in respect of commercial loans. I shall respond to each of your points in turn.
If you are setting up a business as a mortgage broker and are only carrying out commercial business, then you will not be required to be authorised. More information about this can be found in Chapter 2.7.19A of the Perimeter Guidance Manual (PERG), which forms part of the Financial Services Handbook (the Handbook). I have attached a link to this for your kind attention:
http://fshandbook.info/FS/html/handbook/PERG/2/7
In response to your second question, the answer to this is yes.
The Financial Conduct Authority (FCA) does not respond to hypothetical questions. For the purposes of this response fraud is a matter for the police. If you were involved in money laundering this would be for the police to investigate.
In response to your fourth question, I would refer you again to PERG and confirm that we do not regulate commercial loans.
The nature of the loan will determine what the loan is for, irrespective of the borrower type.
I hope this is helpful to you.
Yours sincerely
Name Removed
Associate | Customer Contact Centre
Financial Conduct Authority | www.fca.org.uk
Consumer Helpline: 0800 111 6768
Below was angry last email to the FCA
lost the plot. and also their reply.SOMEONE TELL ME WHY THEY EXIST! WHAT IS THEIR PURPOSE?
Dear Name Removed,
Thank you for your quick response.
I would appreciate it if you could clarify a couple of points in your reply regarding to Unregulated Commercial secured loans.
From what i gather, and i would appreciate it if you could correct me if i am wrong, What you are saying is that, If i were to establish a limited company under companies house and use the line of business as a Mortgage Broker:
1, I can provide contracts for loans and as long as it is stipulated within the contract that it is for commercial use, unregulated and first charge secured, without notifying FCA to register for any type of permission.?
2, If i were to decide to breach this contract for any reason then there will be no remit by the borrower to complain through the FCA or any other organisation and the only method the borrower would have against me to resolve the matter would be that of taking legal action against me.?
3, Hypothetically, should it be the case that i have provided the funds to the borrower by means of illegal activities (which i would never do and would never have any intentions on doing) then i could potentially use that business for money laundering, again without having any concern that the FCA or any other regulatory authorisation would or can investigate it should you receive a complaint from the borrower about the company they borrowed the money from?.
4, As mentioned in my response a (Name Removed) who is an individual from (place removed) has been stated as the lender and is an individual, Are you saying that i dont even have to establish a company to be able to lend money to anyone and the FCA cannot intervene at any stage as long as it is stipulated in the agreement that it is a loan for commercial use, first charge and unregulated?
4, The loan can be classeD as a commercial loan whether the borrower is stated on the loan agreement as an individual or a company name.
I would very much appreciate a response to each point made.
Kind regards,
Name Removed
REPLY FROM FCA
Dear Name Removed
Thank you for your further email dated 13 August 2014 in respect of commercial loans. I shall respond to each of your points in turn.
If you are setting up a business as a mortgage broker and are only carrying out commercial business, then you will not be required to be authorised. More information about this can be found in Chapter 2.7.19A of the Perimeter Guidance Manual (PERG), which forms part of the Financial Services Handbook (the Handbook). I have attached a link to this for your kind attention:
http://fshandbook.info/FS/html/handbook/PERG/2/7
In response to your second question, the answer to this is yes.
The Financial Conduct Authority (FCA) does not respond to hypothetical questions. For the purposes of this response fraud is a matter for the police. If you were involved in money laundering this would be for the police to investigate.
In response to your fourth question, I would refer you again to PERG and confirm that we do not regulate commercial loans.
The nature of the loan will determine what the loan is for, irrespective of the borrower type.
I hope this is helpful to you.
Yours sincerely
Name Removed
Associate | Customer Contact Centre
Financial Conduct Authority | www.fca.org.uk
Consumer Helpline: 0800 111 6768
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