The Financial Conduct Authority v BlueCrest Capital Management

The Financial Conduct Authority v BlueCrest Capital Management

The FCA's power under s.55L FSMA to impose a single-firm redress requirement is not constrained by s.404F(7) or subject to the four conditions of loss, causation, duty, and actionability. The Upper Tribunal's jurisdiction on reference is broad and encompasses matters with a real and significant connection to the subject matter of the process, not limited to the allegations in the warning or decision notice. Amendments based on the same factual background are permissible, subject to case management discretion.

Parties
Appellant/cross Respondent: Financial Conduct Authority; Respondent/cross Appellant: BlueCrest Capital Management (UK) LLP
Jurisdiction
England and Wales
Judgment Date
10 February 2024
Procedural Posture
Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal
Outcome
Appeal allowed; cross-appeal dismissed
Legal Topics
Statutory Interpretation, Regulatory Powers, Consumer Redress, Jurisdiction of Upper Tribunal, Financial Services and Markets Act 2000
Financial Regulation Administrative Law Statutory Interpretation Regulatory Powers Consumer Redress Jurisdiction of Upper Tribunal Financial Services and Markets Act 2000

Case Brief

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Parties

Financial Conduct Authority

Appellant/cross Respondent

BlueCrest Capital Management (UK) LLP

Respondent/cross Appellant

Procedural Posture

Civil Appeal / Appeal From Upper Tribunal (tax and Chancery Chamber) to Court of Appeal

Legal Issues

  1. 1 Whether the FCA's power under s.55L FSMA to impose a single-firm redress requirement is constrained by s.404F(7) and subject to the four conditions of loss, causation, duty, and actionability
  2. 2 Whether the Upper Tribunal's jurisdiction on reference is limited to allegations made in the warning/decision notice or extends to new allegations/amendments

Ratio Decidendi

The FCA's power under s.55L FSMA to impose a single-firm redress requirement is not constrained by s.404F(7) or subject to the four conditions of loss, causation, duty, and actionability. The Upper Tribunal's jurisdiction on reference is broad and encompasses matters with a real and significant connection to the subject matter of the process, not limited to the allegations in the warning or decision notice. Amendments based on the same factual background are permissible, subject to case management discretion.

Court Disposition

Appeal allowed; cross-appeal dismissed

Orders

  • Strike out application dismissed
  • Rejoinder application allowed