Persons Identified In Schedule 1 of the Claim Form (The "SL Claimants") v Tesco Plc (Rev 1)

Persons Identified In Schedule 1 of the Claim Form (The "SL Claimants") v Tesco Plc (Rev 1)

Claimants holding interests in dematerialised securities through custody chains have an equitable proprietary interest sufficient to constitute 'any interest in securities' under Schedule 10A FSMA. The process by which such interests are acquired or disposed of, even through intermediated structures, falls within the statutory meaning of 'acquisition' or 'disposal.' Therefore, such claimants have standing to bring claims for compensation under section 90A and Schedule 10A FSMA.

Parties
Claimant: The Persons Identified in Schedule 1 of the Claim Form (the “SL Claimants”); Claimant: Manning & Napier Fund, Inc.; Claimant: Exeter Trust Company; Defendant: Tesco PLC
Jurisdiction
England and Wales
Judgment Date
28 October 2019
Procedural Posture
Civil / Strike Out Application
Outcome
strike-out application dismissed
Legal Topics
Intermediated Securities, Investor Standing, Statutory Interpretation, Remedies for Misleading Statements, Custody Chains
Financial Services Law Equity and Trusts Securities Law Intermediated Securities Investor Standing Statutory Interpretation Remedies for Misleading Statements Custody Chains

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Parties

The Persons Identified in Schedule 1 of the Claim Form (the “SL Claimants”)

Claimant

Manning & Napier Fund, Inc.

Claimant

Exeter Trust Company

Claimant

Tesco PLC

Defendant

Procedural Posture

Civil / Strike Out Application

Legal Issues

  1. 1 Whether claimants holding interests in dematerialised securities through custody chains have standing to claim under section 90A and Schedule 10A of the Financial Services and Markets Act 2000 (FSMA)
  2. 2 Whether such claimants have 'any interest in securities' within the meaning of Schedule 10A FSMA
  3. 3 Whether acquisition or disposal of interests through intermediated structures constitutes 'acquisition' or 'disposal' under the statute

Ratio Decidendi

Claimants holding interests in dematerialised securities through custody chains have an equitable proprietary interest sufficient to constitute 'any interest in securities' under Schedule 10A FSMA. The process by which such interests are acquired or disposed of, even through intermediated structures, falls within the statutory meaning of 'acquisition' or 'disposal.' Therefore, such claimants have standing to bring claims for compensation under section 90A and Schedule 10A FSMA.

Court Disposition

strike-out application dismissed

Orders

  • Tesco's application to strike out the claims is dismissed.
  • Parties to agree and provide a draft form of order; any consequential matters to be addressed after formal hand-down.