KVB Consultants Limited & Ors v Jacob Hopkins Mckenzie Limited & Ors

KVB Consultants Limited & Ors v Jacob Hopkins Mckenzie Limited & Ors

KCL is liable under section 39 FSMA for JHM's promotional activities relating to the first seven schemes, as these fell within the business for which KCL accepted responsibility, and all such promotions were prohibited by section 238 FSMA, giving rise to a cause of action for breach of statutory duty. However, KCL is not liable for activities outside the scope of the agreement or after its termination, and factual disputes regarding certain claims and the Kingsley Terrace scheme require trial.

Parties
Claimants: KVB Consultants Limited and Others; Defendants: Jacob Hopkins McKenzie Limited and Others; Twelfth Defendant: Kession Capital Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Commercial Civil Claim (summary Judgment Application) / High Court Summary Judgment Ruling
Outcome
Summary judgment granted in part; defence struck out; fresh defence to be served; certain claims to proceed to trial.
Legal Topics
Collective Investment Schemes, Appointed Representatives, Financial Promotions, Breach of Statutory Duty, Supervision of Representatives
Financial Services Law Commercial Law Regulatory Law Collective Investment Schemes Appointed Representatives Financial Promotions Breach of Statutory Duty Supervision of Representatives

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Parties

KVB Consultants Limited and Others

Claimants

Jacob Hopkins McKenzie Limited and Others

Defendants

Kession Capital Limited

Twelfth Defendant

Procedural Posture

Commercial Civil Claim (summary Judgment Application) / High Court Summary Judgment Ruling

Legal Issues

  1. 1 Whether KCL is liable for losses suffered by claimants due to investments in unlawful collective investment schemes promoted by JHM as KCL's appointed representative
  2. 2 Whether KCL's responsibility under section 39 of the Financial Services and Markets Act 2000 extends to the activities in question
  3. 3 Whether KCL breached its supervisory obligations under SUP 12

Ratio Decidendi

KCL is liable under section 39 FSMA for JHM's promotional activities relating to the first seven schemes, as these fell within the business for which KCL accepted responsibility, and all such promotions were prohibited by section 238 FSMA, giving rise to a cause of action for breach of statutory duty. However, KCL is not liable for activities outside the scope of the agreement or after its termination, and factual disputes regarding certain claims and the Kingsley Terrace scheme require trial.

Court Disposition

Summary judgment granted in part; defence struck out; fresh defence to be served; certain claims to proceed to trial.

Orders

  • Summary judgment entered for claimants in relation to Winchfawr (HR 61), Hirwaun (HR 65), Brynithel (HR 66), New Tredegar (HR 75), The Bryn/Rhigos (HR 71), Porth (HR 81), and for Aquarius Living Limited and Mr & Mrs Shah in relation to Salisbury Road (HR 79).
  • Defence struck out; fresh defence to be served within 21 days.