Financial Services Authority (FSA) v Anderson & Ors

Financial Services Authority (FSA) v Anderson & Ors

The just sum payable by each defendant under section 382(2) FSMA is the total of the losses suffered by depositors (excluding close relatives as defined) plus the profits accrued by the defendants as a result of their contraventions, with interest at 6% per annum from the date of intervention to judgment. Deposits from close relatives are excluded from the loss calculation as they are not 'deposits' under the RAO. The FSA's approach to loss and profit calculation is accepted, subject to agreed adjustments.

Parties
Claimant: The Financial Services Authority; Defendant: John Cecil Anderson; Defendant: Kenneth Alun Peacock; Defendant: Kautilya Nandan Pruthi
Jurisdiction
England and Wales
Judgment Date
29 June 2010
Procedural Posture
Civil / Quantum Trial Following Summary Judgment
Outcome
Restitution orders granted against all defendants for specified sums; no order under section 380(2) FSMA; further directions and costs to be determined.
Legal Topics
Unlawful Deposit Taking, Restitution Orders, FSMA Section 19 Contravention, Calculation of Losses and Profits, Exemption for Close Relatives, Interest on Losses
Financial Regulation Restitution Banking Law Unlawful Deposit Taking Restitution Orders FSMA Section 19 Contravention Calculation of Losses and Profits Exemption for Close Relatives +1 more

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Parties

The Financial Services Authority

Claimant

John Cecil Anderson

Defendant

Kenneth Alun Peacock

Defendant

Kautilya Nandan Pruthi

Defendant

Procedural Posture

Civil / Quantum Trial Following Summary Judgment

Legal Issues

  1. 1 How should losses and adverse effects under section 382(2) FSMA be assessed?
  2. 2 Can restitution orders include/exclude sums relating to deposits by close relatives under article 6(1)(d) RAO?
  3. 3 What are the correct figures for losses and profits for each defendant?

Ratio Decidendi

The just sum payable by each defendant under section 382(2) FSMA is the total of the losses suffered by depositors (excluding close relatives as defined) plus the profits accrued by the defendants as a result of their contraventions, with interest at 6% per annum from the date of intervention to judgment. Deposits from close relatives are excluded from the loss calculation as they are not 'deposits' under the RAO. The FSA's approach to loss and profit calculation is accepted, subject to agreed adjustments.

Court Disposition

Restitution orders granted against all defendants for specified sums; no order under section 380(2) FSMA; further directions and costs to be determined.

Orders

  • Mr Anderson to pay £12,735,771.04, €459,181.87, and $122,617.60 to the FSA.
  • Mr Peacock to pay £10,876,259.69, €664,763.65, and $328,440.00 to the FSA.