Secretary of State for Business Energy And Industrial Strategy v Evans & Anor [2020] EWHC 3519 (Ch) (18 December 2020)

Secretary of State for Business Energy And Industrial Strategy v Evans & Anor [2020] EWHC 3519 (Ch) (18 December 2020)

The defendants failed to ensure sufficient and ongoing due diligence on FCP as an introducer and on the suitability of investments, in breach of regulatory standards and FCA Principles 2 and 6. Their systems did not identify or prevent the acceptance of business from an unlicensed introducer or the investment of customer funds in high-risk, unsuitable products. These failures constituted misconduct and demonstrated unfitness to be company directors under the Company Directors Disqualification Act 1986.

Citation
[2020] EWHC 3519 (Ch)
Parties
Claimant: THE SECRETARY OF STATE FOR BUSINESS ENERGY AND INDUSTRIAL STRATEGY; Defendant: PAUL MARTIN EVANS; Defendant: NIGEL ARTHUR WILLIAM BASSET EVANS
Jurisdiction
England and Wales
Judgment Date
18 December 2020
Procedural Posture
Directors Disqualification Proceedings / Judgment After Trial
Outcome
Disqualification orders made against both defendants.
Legal Topics
Directors' Disqualification, Regulatory Compliance, Due Diligence, SIPP Operators, FCA Principles, Unregulated Collective Investment Schemes
Company Law Insolvency Law Financial Regulation Directors' Disqualification Regulatory Compliance Due Diligence SIPP Operators FCA Principles +1 more

Case Brief

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Parties

THE SECRETARY OF STATE FOR BUSINESS ENERGY AND INDUSTRIAL STRATEGY

Claimant

PAUL MARTIN EVANS

Defendant

NIGEL ARTHUR WILLIAM BASSET EVANS

Defendant

Procedural Posture

Directors Disqualification Proceedings / Judgment After Trial

Legal Issues

  1. 1 Whether the defendants failed to ensure sufficient due diligence regarding introducers and investments for SIPP business.
  2. 2 Whether such failures amounted to misconduct and unfitness to be company directors under the Company Directors Disqualification Act 1986.

Ratio Decidendi

The defendants failed to ensure sufficient and ongoing due diligence on FCP as an introducer and on the suitability of investments, in breach of regulatory standards and FCA Principles 2 and 6. Their systems did not identify or prevent the acceptance of business from an unlicensed introducer or the investment of customer funds in high-risk, unsuitable products. These failures constituted misconduct and demonstrated unfitness to be company directors under the Company Directors Disqualification Act 1986.

Court Disposition

Disqualification orders made against both defendants.

Orders

  • Paul Martin Evans disqualified from acting as a director for 6 years.
  • Nigel Arthur William Basset Evans disqualified from acting as a director for 6 years.