The FCA has this week restored the regulatory authorisation of Kent-based advice firm The Pentagon Partnership (FRN: 627747) two months after its permissions were cancelled.

The regulator yesterday (29 January) took the unusual step of restoring the firm’s authorisation by annulling the cancellation.

In November the FCA cancelled the Part 4A permissions of the firm to carry out regulated business due to non-payment of fees and failure to submit returns.

The effect was to halt the firm's ability to carry out authorised financial services business.

Pentagon is an IFA firm offering protection, savings and investments, pensions and mortgages advice to individuals and businesses and is based in Broadstairs, Kent.

Pentagon founder Paul Jefcoate said there were extenuating circumstances to explain the admin issues which caused the cancellation of permissions and he told Financial Planning Today: "I’m very pleased to have received the reversal of the decision.

"The experience was not one I’d wish to repeat however, the contact at the FCA unexpectedly provided a service that was second to none."

The FCA said it had agreed to an application by the firm to annul the cancellation of its permissions. The FCA did not give further details but the move suggests issues related to its authorisation over non-payment of fees and failure to submit returns have now been resolved. 

Firms which have their authorisation revoked for non-payment of fees are rarely able to appeal the decision but can apply for an annulment of the permission cancellation if they resolve issues related to the cancellation.

The FCA said in a statement yesterday: “On 29 January 2025, an annulment application was accepted by the Authority and the firm’s authorisation was restored.”

The FCA said in November it had taken action to cancel permissions as it believed Pentagon was no longer carrying out any regulated activities. The regulator said Pentagon also failed to pay its periodic fees and levies owed, with invoices dated 29 July (£2,465.19) and 27 March (£2,215.74) going unpaid and unacknowledged. It added that the firm also failed to submit returns.

Pentagon was founded by senior partner Paul Jefcoate in February 1998, and had been directly authorised by the FCA since 2014. Between 2001 and 2014 Pentagon was an appointed representative of the Sesame Network.

Before founding the IFA, Mr Jefcoate spent 18 years working in financial services for Halifax, Prudential and Lloyds Bank. The IFA had two advisers before its permission was revoked.

The Pentagon Partnership has been asked for comment.