The Financial Conduct Authority v Bright Management Solution Limited & Ors

The Financial Conduct Authority v Bright Management Solution Limited & Ors

The court approved the FCA's proposed pro rata distribution scheme as fair, having found that the FCA took all reasonable steps to identify qualifying investors and their losses, and that the method prioritises compensation for out-of-pocket losses in accordance with legal principles and precedent. The court also dispensed with service on the dissolved defendants as they have no interest in the application and restoring them would be disproportionate.

Parties
Claimant: The Financial Conduct Authority; First Defendant: Bright Management Solution Limited; Second Defendant: Soccer League International Limited; Third Defendant: Soccer League UK Limited; Fourth Defendant: Mr Mohammed Zakir Hussain; Fifth Defendant: Mr Mohammed Kabir; Sixth Defendant: Mr Mohammed Abdul Kahhar; Seventh Defendant: Mr Kayes Miah
Jurisdiction
England and Wales
Judgment Date
30 July 2024
Procedural Posture
Civil (financial Regulation/restitution) / Application for Approval of Scheme of Distribution Under Section 382(3) FISMA
Outcome
Application granted
Legal Topics
Unauthorised Investment Schemes, Distribution of Recovered Assets, Consumer Protection, Restitution, Court Approval of Regulatory Distributions
Financial Services Law Civil Procedure Unauthorised Investment Schemes Distribution of Recovered Assets Consumer Protection Restitution Court Approval of Regulatory Distributions

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Parties

The Financial Conduct Authority

Claimant

Bright Management Solution Limited

First Defendant

Soccer League International Limited

Second Defendant

Soccer League UK Limited

Third Defendant

Mr Mohammed Zakir Hussain

Fourth Defendant

Mr Mohammed Kabir

Fifth Defendant

Mr Mohammed Abdul Kahhar

Sixth Defendant

Mr Kayes Miah

Seventh Defendant

Procedural Posture

Civil (financial Regulation/restitution) / Application for Approval of Scheme of Distribution Under Section 382(3) FISMA

Legal Issues

  1. 1 Whether to approve the FCA's proposed scheme of distribution to investors under section 382(3) FISMA
  2. 2 Whether to dispense with service on dissolved defendants

Ratio Decidendi

The court approved the FCA's proposed pro rata distribution scheme as fair, having found that the FCA took all reasonable steps to identify qualifying investors and their losses, and that the method prioritises compensation for out-of-pocket losses in accordance with legal principles and precedent. The court also dispensed with service on the dissolved defendants as they have no interest in the application and restoring them would be disproportionate.

Court Disposition

Application granted

Orders

  • Approval of the FCA's proposed scheme of distribution to qualifying investors as set out in schedule 1 to the draft order, including both sums currently held and to be received from the Fifth Defendant.
  • Dispensation with service of the application on the Second and Third Defendants.