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Tribunal members: Mr T Gordon Coutts QC (Chair), Mr Michael Hanson, Mr Andrew Lund)
Date of decision: 8 February 2005
FACTS
The background to this reference of five combined applications to the Financial Serviccs and Markets Tribunal lay in FSA's decisions to refuse the three individual applicants (Mr Dcakin, Mr Harrison and Mrs Roe) approvals to perform controlled functions under Part V FSMA 2000 and to refuse the two corporate applicants (Ridings GB Ltd and Glenbow Financial Management Ltd) authorisation to carry on regulated activities under Part IV FSMA 2000. The Tribunal rehearsed facts about the commercial history of Mr Deakin and a number of now insolvent companies with which he had been associated which had carried on the same kind of business which Ridings GD Ltd now sought to carry on and in respect of which these applications for approval and authorisation had originally been made to FSA. The Tribunal considered this recent trading history and the following matters material to its determination of its hearing of these applications:
'Mr Deakin, the key figure in this whole affair, began his business life as a salesman. He transferred in about 1977 to Pearl Assurance where he acted as Section Manager. He thereafter acted as a Manager until 1995 when his duties (with Frizzell Financial Management) included training, compliance and development matters. In 1997 he was an Associate Director of Bowland Financial Management Ltd and claimed to have duties providing independent financial advice for a high net worth client group. In 1999-2000 4 companies were incorporated; MDA Sterling Direct Ltd, Sterling GB Ltd, Sterling GB Direct Ltd and MBA Sterling (UK) Ltd. Mr Deakin was a director of each of these companies.
On 2 August 2000 by resolution Sterling GB Direct Ltd changed its name to MBA Sterling Direct Ltd and the former MBA Sterling Direct Ltd changed its name to Sterling GB Direct Ltd. Nu explanation which sounded plausible to the Tribunal was given for this reshuffle, it has caused confusion to customers, creditors and regulators for which the directors of those companies must bear any blame. Mr Deakin claimed to be responsible for training and compliance issues with Sterling GB Direct Ltd from 2000 onwards. Apart from the now MBA Sterling Direct Ltd...