Helden v StratHMore Ltd [2010] EWHC 2012 (Ch) (30 July 2010)

Helden v StratHMore Ltd [2010] EWHC 2012 (Ch) (30 July 2010)

Strathmore's lending to Helden constituted a regulated activity carried on by way of business under FSMA; Strathmore was not authorised, so the loan agreement is unenforceable under s.26. The court found no reasonable belief by Strathmore that it was not contravening FSMA, and declined to permit enforcement under s.28.

Citation
[2010] EWHC 2012 (Ch)
Parties
Claimant: Charles Cleland Helden; Defendant: Strathmore Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Chancery Division High Court Claim / Final Judgment After Trial
Outcome
Loan agreement declared unenforceable under FSMA; Strathmore not permitted to enforce the agreement.
Legal Topics
FSMA Enforcement, Regulated Mortgage Contracts, Unenforceability of Loan Agreements, Trust Arrangements, Secured Lending
Financial Services Law Contract Law Property Law FSMA Enforcement Regulated Mortgage Contracts Unenforceability of Loan Agreements Trust Arrangements Secured Lending

Case Brief

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Parties

Charles Cleland Helden

Claimant

Strathmore Limited

Defendant

Procedural Posture

Chancery Division High Court Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether Strathmore's loan to Helden was a regulated activity under FSMA
  2. 2 Whether the loan agreement is unenforceable under FSMA s.26
  3. 3 Whether the court should allow enforcement under FSMA s.28

Ratio Decidendi

Strathmore's lending to Helden constituted a regulated activity carried on by way of business under FSMA; Strathmore was not authorised, so the loan agreement is unenforceable under s.26. The court found no reasonable belief by Strathmore that it was not contravening FSMA, and declined to permit enforcement under s.28.

Court Disposition

Loan agreement declared unenforceable under FSMA; Strathmore not permitted to enforce the agreement.

Orders

  • Strathmore's claim for possession and enforcement dismissed.
  • Helden entitled to recover any money or property paid under the agreement.