Financial Services Authority v Bayshore Nominees Ltd & Ors [2009] EWHC 285 (Ch) (05 February 2009)

Financial Services Authority v Bayshore Nominees Ltd & Ors [2009] EWHC 285 (Ch) (05 February 2009)

The court held that the defendants engaged in unauthorised investment activities, including arranging deals and advising on investments, in contravention of the Financial Services and Markets Act 2000 and the Regulated Activities Order 2001. The prohibition on advising applies where the advice is received in the UK, even if given from abroad.

Citation
[2009] EWHC 285 (Ch)
Parties
Claimant: Financial Services Authority; First Defendant: Bayshore Nominees Limited; Second Defendant: Mr Manji; Third Defendant: Mr Bhowan; Fourth Defendant: Enterprise Analytics Incorporated (person or persons carrying on business as); Fifth Defendant: Gatemore Securities (person or persons carrying on business as)
Jurisdiction
England and Wales
Judgment Date
05 February 2009
Procedural Posture
Civil / Judgment After Trial and Approval of Consent Orders
Outcome
Judgment for the claimant; approval of consent orders against first, second, and third defendants; relief to be determined against fourth and fifth defendants.
Legal Topics
Boiler Room Fraud, Unauthorised Investment Activity, Arranging Investment Deals, Advising on Investments, Jurisdiction of Financial Regulation
Financial Services Law Securities Regulation Boiler Room Fraud Unauthorised Investment Activity Arranging Investment Deals Advising on Investments Jurisdiction of Financial Regulation

Case Brief

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Parties

Financial Services Authority

Claimant

Bayshore Nominees Limited

First Defendant

Mr Manji

Second Defendant

Mr Bhowan

Third Defendant

Enterprise Analytics Incorporated (person or persons carrying on business as)

Fourth Defendant

Gatemore Securities (person or persons carrying on business as)

Fifth Defendant

Procedural Posture

Civil / Judgment After Trial and Approval of Consent Orders

Legal Issues

  1. 1 Whether the defendants carried out regulated activities without authorisation under the Financial Services and Markets Act 2000
  2. 2 Whether advising on investments from abroad to UK investors falls within the prohibition of Article 53 RAO and section 19 FSMA
  3. 3 Whether the evidence establishes the FSA's allegations against each defendant

Ratio Decidendi

The court held that the defendants engaged in unauthorised investment activities, including arranging deals and advising on investments, in contravention of the Financial Services and Markets Act 2000 and the Regulated Activities Order 2001. The prohibition on advising applies where the advice is received in the UK, even if given from abroad.

Court Disposition

Judgment for the claimant; approval of consent orders against first, second, and third defendants; relief to be determined against fourth and fifth defendants.

Orders

  • Court's approval granted to two consent orders disposing of the action against the first, second, and third defendants.
  • Relief against the fourth and fifth defendants to be determined following submissions on precise form.