The Financial Conduct Authority (FCA), the United Kingdom’s financial regulator, has put a regulatory leash on Micro-E C.I.C. The firm is now prohibited from offering loans or credit to any new or existing customers.
Key Restrictions:
- Provision of Loans and Credit: Micro-E cannot provide loans or credit to any new or existing customers without the prior written consent of the FCA.
- Funding Agreements: Any agreement concerning the provision of loans, investment funds or any other form of funding cannot be entered into by Micro-E without the prior written consent of the FCA.
- Receiving Funds: Receiving loans, investment monies or any other form of funding directly or indirectly from third parties is prohibited unless consented to by the FCA.
- Asset Management: Micro-E cannot dispose of, withdraw, transfer, deal with or diminish the value of any of its own assets or any funds it holds for its customers without the prior written consent of the FCA.
However, repayments of debts incurred prior to these requirements are exempted from these restrictions. This includes loans to its directors.
Micro-E still has the right to make representations to the Authority or refer the matter to the Tribunal. Furthermore, the company can continue dealing with its own assets in the ordinary course of business provided that the sum or value of such dealings or disposals does not exceed £1,000 (or £3,000 in the case of legal expenses).
This regulatory action is a significant move by the FCA, underlining their commitment to protecting consumers and maintaining market integrity.