UK regulator imposes restrictions on Micro-E
The UK Financial Conduct Authority (FCA) has imposed restrictions on Micro-E C.I.C. The regulator required Micro-E to cease providing either loans or credit to any new or existing customers.
Micro-E must not enter into any agreement relating to the provision of loans, investment monies or any other form of funding, and it must not receive any such monies either directly or indirectly.
Micro-E has the right to make representations to the Authority and/or to refer the matter to the Tribunal.
In particular, the firm must not, without the prior written consent of the Authority, provide loans or credit to any new or existing customers.
Further, the firm must not, without the prior written consent of the Authority, enter into any agreement with any party relating to the provision of loans, investment monies or any other form of funding to the Firm, its director or any other party.
The firm must not, without the prior written consent of the Authority, receive any loans, investment monies or any other form of funding directly or indirectly from any third parties. For the avoidance of doubt, this does not prevent the Firm from receiving repayments of debts incurred prior to the imposition of the Requirements, including but not limited to loans to its directors.
Micro-E must not, without the prior written consent of the Authority, in any way dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets, and any funds it holds for, or to the order of, its customers (whether in the United Kingdom or elsewhere), whether held by the firm as at the date of the imposition of the Requirements or acquired thereafter.
The firm may continue dealing with or disposing of any of its own assets in the ordinary and proper course of business provided that the sum or value of such dealings or disposals, whether as a single transaction or a combination of related transactions, does not exceed £1,000 (or £3,000 in the case of legal expenses).