Kession Capital Ltd (in Liquidation) v KVB Consultants Ltd and others

Dealing with retail clients is a 'part' of the business of a prescribed description within the meaning of section 39 FSMA. Where an authorised person’s permission and the appointed representative agreement exclude retail clients, the authorised person is not responsible under section 39(3) for the appointed representative’s activities with retail clients. The appeal is allowed and Kession is not liable for JHM’s dealings with retail clients.

Parties: Appellant: Kession Capital Ltd (in Liquidation); Respondents: KVB Consultants Ltd and others
Jurisdiction: England and Wales
Judgment Date: 01 April 2026
Procedural Posture: Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal
Outcome: Appeal allowed
Legal Topics: Appointed Representatives, Authorised Persons, Liability Under FSMA, Client Classification, Summary Judgment

Financial Services Law Regulatory Law Appointed Representatives Authorised Persons Liability Under FSMA Client Classification Summary Judgment

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 1

Parties

Kession Capital Ltd (in Liquidation)

Appellant

KVB Consultants Ltd and others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal

Legal Issues

1 Whether an authorised person is responsible under section 39(3) FSMA for the activities of its appointed representative in dealing with retail clients when the authorised person’s permission and the appointed representative agreement prohibit such dealings.

Ratio Decidendi

Court Disposition

Appeal allowed

Orders

Summary judgment against Kession set aside; Kession has no responsibility under section 39(3) FSMA for JHM’s activities with retail clients.