The Financial Conduct Authority v Karen Ferreira

The Financial Conduct Authority v Karen Ferreira

To be 'knowingly concerned' in a contravention under section 382 FSMA, a person must have knowledge of the facts that make the act a contravention, including knowledge that the communication was not approved by an authorised person or otherwise exempt. Mere knowledge of the communication itself is insufficient.

Parties
Claimant/respondent: The Financial Conduct Authority; Defendant/appellant: Karen Ferreira
Jurisdiction
England and Wales
Judgment Date
25 March 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Section 382 FSMA, Section 21 FSMA, Knowing Concern in Contravention, Director Liability, Restitution Orders
Financial Services Law Statutory Interpretation Section 382 FSMA Section 21 FSMA Knowing Concern in Contravention Director Liability Restitution Orders

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Parties

The Financial Conduct Authority

Claimant/respondent

Karen Ferreira

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 What is the correct interpretation of 'knowingly concerned' in section 382 of the Financial Services and Markets Act 2000?
  2. 2 Does liability under section 382 require knowledge that the relevant communication was not approved by an authorised person or only knowledge of the facts in section 21(1)?

Ratio Decidendi

To be 'knowingly concerned' in a contravention under section 382 FSMA, a person must have knowledge of the facts that make the act a contravention, including knowledge that the communication was not approved by an authorised person or otherwise exempt. Mere knowledge of the communication itself is insufficient.

Court Disposition

Appeal allowed

Orders

  • The appeal is allowed. The High Court's order against Ms. Ferreira under section 382 FSMA is set aside.