The Financial Services Authority (FSA) v Anderson & Ors [2010] EWHC 599 (Ch) (25 March 2010)

The Financial Services Authority (FSA) v Anderson & Ors [2010] EWHC 599 (Ch) (25 March 2010)

The defendants' activities constituted accepting deposits as defined by the Regulated Activities Order 2001, carried on by way of business, and were not excluded by statutory exceptions. There was no real prospect of successfully defending the claim. Summary judgment was appropriate, and injunctions should be granted to restrain further regulated activity.

Citation
[2010] EWHC 599 (Ch)
Parties
Claimant: The Financial Services Authority; First Defendant: John Cecil Anderson; Second Defendant: Kenneth Alun Peacock; Third Defendant: Kautilya Nandan Pruthi
Jurisdiction
England and Wales
Judgment Date
25 March 2010
Procedural Posture
Civil / Summary Judgment Application
Outcome
Summary judgment granted for the claimant (FSA) against all defendants.
Legal Topics
Regulated Activities, Accepting Deposits, Summary Judgment, Financial Services and Markets Act 2000, Injunctions, Declarations
Financial Regulation Banking Law Regulated Activities Accepting Deposits Summary Judgment Financial Services and Markets Act 2000 Injunctions Declarations

Case Brief

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Parties

The Financial Services Authority

Claimant

John Cecil Anderson

First Defendant

Kenneth Alun Peacock

Second Defendant

Kautilya Nandan Pruthi

Third Defendant

Procedural Posture

Civil / Summary Judgment Application

Legal Issues

  1. 1 Whether the defendants carried on or purported to carry on a regulated activity (accepting deposits) without authorisation under FSMA 2000
  2. 2 Whether the activities were excluded by statutory exceptions (e.g., close relatives, business of lending)
  3. 3 Whether the activities were carried on 'by way of business'

Ratio Decidendi

The defendants' activities constituted accepting deposits as defined by the Regulated Activities Order 2001, carried on by way of business, and were not excluded by statutory exceptions. There was no real prospect of successfully defending the claim. Summary judgment was appropriate, and injunctions should be granted to restrain further regulated activity.

Court Disposition

Summary judgment granted for the claimant (FSA) against all defendants.

Orders

  • Declarations to be granted if the FSA abandons claims for earlier dates than those found; otherwise, trial to proceed on the basis of findings of fact.
  • Injunctions granted restraining the defendants from carrying on or purporting to carry on regulated activities.