Finance firm surrenders licence after FSA investigation

Company failed to comply with anti-money laundering rules

A Douglas financial company has surrendered its licence and three directors have been barred from their roles after an investigation found a number of serious regulatory failings.

Parcville Limited, formerly known as Corporate Options Limited, was found to have contravened the Anti-Money Laundering and Countering the Financing of Terrorism Code.

The Financial Services Authority first identified issues in 2019 before asking a third party to carry out a further investigation to determine whether the company is fit and proper to hold its licences.

That investigation found a range of problems, including that the firm had failed to ensure good governance, had not demonstrated effective risk management and established business relationships without conducting customer risk assessments.

The report found the company had not been fully compliant for several years because it hadn't invested enough time and resources in anti-money laundering.

It also found evidence that the business had been undertaking regulated activity without being licensed to do so.

In September last year, the company reported to the FSA that the directors had to inject capital into the business, calling into question whether Corporate Options Limited had remained solvent at all times.

An investigation by the FSA found it had been in breach of Liquid Capital Requirements for longer than reported, and considerably underestimated its shortfall.

As a result of the failings, the FSA says it's reasonable and proportionate to exercise its powers to prohibit role holders from continuing in those positions.

It's imposed the sanctions on directors Gerald Chase, Paul Chase and Lee Murphy, and also found the company's former Head of Compliance was not fit and proper to hold her position.

As a result of the FSA's investigation, Corporate Options Limited surrendered its licence in July and ceased undertaking regulated activities, and in August changed its name to Parcville Limited.

The authority found the company and its directors fully co-operated with the investigation, and accepted responsibility for the failings.