Financial Conduct Authority v Avacade Ltd (t/a Avacade Investment Options)

Subject Matter

FINANCIAL SERVICES — Regulated and prohibited activities — General prohibition — Defendant financial intermediaries contacting consumers first to offer them free pension report and then to discuss transferring pension funds into self-invested personal pensions — Defendants receiving substantial commissions from purchase by consumers within SIPPs of direct interest in assets — Financial Conduct Authority contending defendants in breach of general prohibition against carrying on regulated activities by “making arrangements” “with a view to” person participating in them buying or selling securities — Whether defendants “making arrangements” — Whether made in relation to buying or selling of securities even if consumers having direct ownership of assets — Whether within exclusions and therefore not regulated — Whether defendants’ directors knowingly concerned in defendants’ infringements of general prohibition — Financial Services and Markets Act 2000 (c 8), ss 19, 382 (as amended by Financial Services Act 2012 (c 21), Sch 9(5), para 21 and Financial Services (Banking Reform) Act 2013 (c 33), Sch 10, para 3) — Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544), arts 25, 29, 33 (as amended by Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2003 (SI 2003/1476) Pt 2, art 5(3) and Financial Services and Markets Act 2000 (Regulated Activities) (Amendment No 3) Order 2006 (SI 2006/3384) Pt 2, art 14)

[2020] EWHC 1673 (Ch); [2020] Bus LR 1897; [2020] WLR(D) 398, Ch D

Appellate History