A financial firm has surrendered its licence and three directors have been barred after the watchdogs identified serious failings.

Parcville Limited, formerly known as Corporate Options Limited, was found to have contravened the Anti-Money Laundering and Countering the Financing of Terrorism Code.

The Financial Services Authority identified the failings after an inspection in November and December 2019.

It said: ‘ The contraventions are serious regulatory failings and are aggravated by the fact that a significant proportion of COL’s customer base, following a risk re-rating process, when assessed against the requirements of the Code, were classified as high-risk.’

A further investigation by a third party found that COL at the relevant times failed to ensure good governance of a permitted person and compliance with regulatory requirements.

It also had not demonstrated that it had effective risk management and internal control frameworks in place, had not maintained appropriate operational controls and procedures relating to the services it provided to Closed Ended Investment Schemes (“CEICs”), had procedures that were high level and contained nothing to cover the services provided to CEICs and had established business relationships without conducting Customer Risk Assessments, amongst other failings.

It also found evidence that COL had been carrying out activity without being licensed to do so and that in September last year, COL also reported to the FSA that the directors had to inject cash into the business, leaving questions around its solvency.

Following this, it was found that the company had seriously underestimated its shortfall and had been in breach of liquid capital requirements for longer than it initially admitted.

As a result of the failings, the FSA said it would use its powers to prohibit directors Gerald Chase, Paul Chase and Lee Murphy from continuing in those positions.

Corporate Options Limited surrendered its licence in July and is no longer undertaking regulated activities.