The FCA has revoked the authorisations of Glasgow-based claims management firm Compensate Yourself (FRN 837719) after its sole director was convicted of a criminal offence.

Marta Kosciuk was convicted of knowingly being concerned in the defrauding of HMRC of £191,520 worth of duty on 504kg of tobacco in October 2023.

Ms Kosciuk failed to disclose the criminal charge, criminal proceedings and the conviction to the FCA and provided false and misleading information to the regulator about it, the watchdog said.

The FCA added that, “the firm is failing to satisfy the appropriate resources Threshold Condition. Specifically, the Authority considers that the firm does not have appropriate non-financial resources, in terms of the quality of its human resources, to carry on the regulated activities for which it holds Part 4A permission due to the lack of honesty, integrity and reputation of Ms Kosciuk.”

The regulator said it considers that Compensate Yourself is not a fit and proper person to conduct regulated activities.

The firm was authorised by the FCA on 8 June 2020 with permission to conduct claims management regulated activities including the seeking out, referral and identification of claims or potential claims. Ms Kosciuk was a director at the firm from 11 August 2016.

On 24 October 2023 at Greenock Sheriff’s Court Ms Kosciuk pleaded guilty to the offence, which took place between 30 May 2019 and 15 June 2019. The offending was aggravated by a connection with serious organised crime, the FCA said.

On 20 December 2023, Ms Kosciuk was sentenced to a Community Payback Order which required her to attend appointments with a responsible officer for a period of 18 months and to undertake 300 hours of unpaid work. Ms Kosciuk was also given a 12 months Restriction of Liberty Order, whereby for 12 months she was to remain within her dwelling place each day between 7pm and 7am, and to wear a tag.

In July 2023 the FCA wrote to Ms Kosciuk to inform her it had become aware of her criminal charge. She failed to respond or to a follow-up email until 3 November, when she blamed health issues for the delay in her responding and stated that: “With regards to the accusations against me – there is still no ruling so I didn’t assume I would need to let you know as I'm not convicted yet. Situation Im in is very uncomfortable, and I am defending my innocence.[sic]”

The FCA said it considered the statement made by Ms Kosciuk to be false and misleading, as she had been convicted following her guilty plea nine days before the email was sent.

On Friday the FCA withdrew the approval given to Marta Kosciuk and made an order prohibiting her from performing any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm.

It also cancelled Compensate Yourself Ltd's Part 4A permission to carry on regulated activities.