Threshold condition 2 – Effective Supervision

Requires that Paragon is capable of being effectively supervised by the FCA having regard to all the circumstances including:

• the nature (including the complexity) of the regulated activities that Paragon carries on or seeks to carry on, and the products it provides;
• the way in which Paragon’s business is organised;
• if Paragon is a member of a group, whether membership of the group is likely to prevent the FCA’s effective supervision of Paragon;
• if Paragon has close links with another person:

- the nature of the relationship between Paragon and that person;
- whether those links are or that relationship is likely to prevent the FCA’s effective supervision of Paragon; and
- if the person is subject to the laws, regulations or administrative provisions of a territory which is not an EEA State (“the foreign provisions”), whether those foreign provisions, or any deficiency in their enforcement, would prevent the FCA’s effective supervision of Paragon.