FSA suspends registration of Ethnic Mutual Ltd
14th March 2008The Financial Services Authority (FSA) has suspended for three months from 14 March 2008 the registration of Ethnic Mutual Ltd, an exempt charity registered by it as an Industrial and Provident Society.
The FSA has issued a warning on its Moneymadeclear website advising members of the public that the registration has been suspended. A notice of the suspension of registration has also been published in the London Gazette.
The FSA has taken this action because Ethnic Mutual Ltd has been unable to satisfy the FSA that it is operating for the benefit of the community and so fulfilling the condition of its registration.
Either on expiry of the period of three months, or on a date before, the FSA may:
- lift the suspension if it becomes satisfied that Ethnic Mutual Ltd is conducting its business for the benefit of the community; or
- renew the suspension for a further period of three months; or
- serve Ethnic Mutual Ltd with two months notice of the FSA's intention to cancel its registration.
Meanwhile, Ethnic Mutual Ltd is not allowed to accept funds, issue share capital or make new loans.
This action has been taken by the FSA under powers conferred on it by the Industrial and Provident Societies Act 1965, not under the Financial Services and Markets Act 2000.
