FCA warns Renaissance Advisory no longer permitted to conduct any regulated activities
The UK Financial Conduct Authority (FCA) has issued a supervisory notice to Renaissance Advisory Ltd, warning that the firm is no longer permitted to conduct any regulated activities.
The FCA has decided to vary with immediate effect the Part 4A permission granted to Renaissance by removing the following regulated activities:
- Secondary credit broking; and
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Agreeing to carry on a regulated activity.
The regulator has concluded that it is appropriate to exercise its power under sections 55J(1)(a) and (c) of the Act to vary Renaissance’s permission because it is failing, or is likely to fail, to satisfy the Suitability Threshold Condition and to advance the Authority’s consumer protection objectives (section 1C of the Act).
The Authority has identified serious concerns relating to Renaissance in that its conduct appears to demonstrate that it is not fit and proper and poses a significant risk of harm to consumers.
Renaissance has links to Marvell, to whom the Authority issued a First Supervisory Notice on 11 November 2021 for carrying out investment activities outside the scope of its permissions and misleading investors over the extent of its regulated status.
Information filed by Renaissance on Companies House records that Marvell is a significant controller, and its shareholding appears to have been acquired before, but filed after, Renaissance was authorised. Renaissance did not disclose this information to the Authority during or after its authorisation. The sequence of events suggests that Renaissance misled the Authority about its controllers during the authorisation process.
Renaissance also appears to be connected to Grosvenor, to whom the Authority issued a First Supervisory Notice on 30 November 2021 due to its apparent links to firms that the Authority has warned about for engaging in unauthorised business, and for providing misleading information about its controllers and intended business at authorisation. As with Renaissance, Marvell holds a significant interest in Grosvenor through shareholding which according to Companies House records was acquired, but filed after, Grosvenor was authorised.
During the authorisation process, Renaissance and Grosvenor also submitted substantially identical information in response to the Authority’s request for more information about the nature of their businesses. Given the similarities in behaviour between Renaissance and Grosvenor at authorisation, as well as their links to Marvell, there are serious concerns that Renaissance may be seeking to engage in similar activities previously undertaken by Marvell through the misuse of its regulated status as a credit broker to take advantage of consumers.
Finally, the FCA notes that Renaissance has failed to respond to three information requirements issued under section 165 of the Act requiring clarity on its business model, current activities and links to Marvell. The Authority has also been unable to reach Renaissance through calls to its director.
The Authority considers that Variation of Renaissance’s permission with immediate effect is desirable to protect consumers.