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OFT revokes credit licence of financial advisor

PN 109/03    5 August 2003

Maidenhead-based financial advisor Malcolm Ian Watsford, trading as Erin Financial Services, has had his consumer credit licence revoked following action by the OFT.

An adjudicator revoked the licence on the basis of evidence that Mr Watsford had committed offences involving fraud and dishonesty. Mr Watsford was convicted of conspiracy to defraud at the Central Criminal Crown Court on 25 May 2000.

The adjudicator decided that he was not satisfied that Mr Watsford was fit to hold a consumer credit licence. Accordingly, the licence was revoked.

Under the Consumer Credit Act 1974, businesses that offer consumer credit or hire, or who introduce customers to businesses offering credit facilities, must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of applicants and licence holders.

In considering fitness, the OFT will take into account a number of factors including:

• any offence or conviction of violence or dishonesty carried out by the business or anyone involved in running the business
• failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
• consumer complaints
• evidence of unfair business practice
• evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

Director of Consumer Regulation Enforcement Christine Wade said: ‘This is good news for Berkshire consumers and gives protection from an unfit trader. Where there is evidence that a trader has acted improperly the OFT will not hesitate to revoke a consumer credit licence.’

NOTES

1. The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money or are involved in activities relating to credit or hire to be licensed by the OFT.

2. The OFT can refuse or revoke a licence if it decides that a trader is not fit to hold one.

3. It should be noted that proceedings under the Act are not the same as those of a court and the adjudicator’s findings are not the same as convictions by a court. Therefore where the adjudicator finds that an offence has been committed or a provision of the statute has been contravened, it does not mean that the person concerned has been convicted under court proceedings of that offence or of that contravention.

4. An adverse determination (a refusal to grant a licence or the revocation of an existing licence) can be appealed to the Secretary of State for Trade and Industry.

5. The Consumer Credit Public Register is maintained by the OFT. The register documents traders that hold a licence and any action taken against them. It also details traders that have applied for a licence. Enquiries can be made to the Consumer Credit Licensing Bureau on 020 7211 8608.

6. The determination on licence number 159767 was published on 24 July 2003. The licensee was Malcolm Ian Watsford, trading as Erin Financial Services. The trader’s main place of business was stated to be 4 Wootton Way, Maidenhead, Berkshire, SL6 4QU.

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