The Financial Services Authority v Asset L I Inc (t/a Asset Land Investment Inc) & Ors [2013] EWHC 178 (Ch) (08 February 2013)

The Financial Services Authority v Asset L I Inc (t/a Asset Land Investment Inc) & Ors [2013] EWHC 178 (Ch) (08 February 2013)

The arrangements operated by the defendants constituted collective investment schemes within the meaning of section 235 FSMA 2000. Investors did not have day-to-day control, and the property was managed as a whole by or on behalf of the operator. The defendants were not authorised persons and contravened the general prohibition in section 19 FSMA by operating and promoting unauthorised collective investment schemes. Relief under sections 380 and 382 FSMA was appropriate.

Citation
[2013] EWHC 178 (Ch)
Parties
Claimant: The Financial Services Authority; First Defendant: Asset L. I. Inc (trading as Asset Land Investment Inc); Second Defendant: Equity Services (London) Limited; Third Defendant: Asset Land Investment Plc; Fourth Defendant: Mr Stuart Cohen; Fifth Defendant: Mr David Banner-Eve; Sixth Defendant: Ms Susan Siggins
Jurisdiction
England and Wales
Judgment Date
08 February 2013
Procedural Posture
Civil (financial Regulation) / High Court Trial Judgment
Outcome
Claims against ALI-Panama, ALI-UK, Mr Cohen, and Mr Banner-Eve succeeded; relief granted. Claims against ESL and Ms Siggins settled by consent.
Legal Topics
Collective Investment Schemes, Financial Services and Markets Act 2000, Land Banking, Injunctions, Restitution, Standard of Proof
Financial Regulation Securities Law Civil Procedure Collective Investment Schemes Financial Services and Markets Act 2000 Land Banking Injunctions Restitution +1 more

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Parties

The Financial Services Authority

Claimant

Asset L. I. Inc (trading as Asset Land Investment Inc)

First Defendant

Equity Services (London) Limited

Second Defendant

Asset Land Investment Plc

Third Defendant

Mr Stuart Cohen

Fourth Defendant

Mr David Banner-Eve

Fifth Defendant

Ms Susan Siggins

Sixth Defendant

Procedural Posture

Civil (financial Regulation) / High Court Trial Judgment

Legal Issues

  1. 1 Whether the land-banking schemes operated by the defendants constituted collective investment schemes under section 235 FSMA 2000
  2. 2 Whether the defendants contravened the general prohibition in section 19 FSMA 2000 by operating or promoting unauthorised collective investment schemes
  3. 3 Whether any of the defendants were knowingly concerned in such contraventions

Ratio Decidendi

The arrangements operated by the defendants constituted collective investment schemes within the meaning of section 235 FSMA 2000. Investors did not have day-to-day control, and the property was managed as a whole by or on behalf of the operator. The defendants were not authorised persons and contravened the general prohibition in section 19 FSMA by operating and promoting unauthorised collective investment schemes. Relief under sections 380 and 382 FSMA was appropriate.

Court Disposition

Claims against ALI-Panama, ALI-UK, Mr Cohen, and Mr Banner-Eve succeeded; relief granted. Claims against ESL and Ms Siggins settled by consent.

Orders

  • Declarations that the relevant arrangements were collective investment schemes operated in breach of FSMA
  • Injunctions restraining further contraventions