Thomas v The Financial Services Authority [2004] UKFSM FSM008 (22 September 2004)

Thomas v The Financial Services Authority [2004] UKFSM FSM008 (22 September 2004)

Breach of the statutory three-month time limit by the FSA does not render the warning notice or decision notice void, nor does it result in automatic approval, as Parliament did not provide for such a consequence and the statutory scheme requires positive satisfaction as to fitness and propriety. The mere fact of being under investigation is not, by itself, sufficient to conclude an applicant is not fit and proper; all relevant circumstances must be considered.

Citation
[2004] UKFSM FSM008
Parties
Applicant: David Thomas; Respondent: The Financial Services Authority
Jurisdiction
United Kingdom
Judgment Date
22 September 2004
Procedural Posture
Financial Services and Markets Tribunal Reference / Preliminary Decision on Three Issues Prior to Substantive Determination
Outcome
Preliminary issues determined; reference not yet substantively determined.
Legal Topics
Approval of Controlled Functions, Time Limits for Regulatory Decisions, Effect of Regulatory Investigations, Statutory Interpretation, Human Rights (article 6 and 14)
Financial Regulation Administrative Law Approval of Controlled Functions Time Limits for Regulatory Decisions Effect of Regulatory Investigations Statutory Interpretation Human Rights (article 6 and 14)

Case Brief

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Parties

David Thomas

Applicant

The Financial Services Authority

Respondent

Procedural Posture

Financial Services and Markets Tribunal Reference / Preliminary Decision on Three Issues Prior to Substantive Determination

Legal Issues

  1. 1 Whether the FSA breached the statutory three-month time limit in section 61(3) of the Financial Services and Markets Act 2000 for determining an application for approval of controlled functions.
  2. 2 Whether breach of the time limit renders the warning notice and decision notice void.
  3. 3 Whether the mere fact of being under investigation is sufficient grounds to conclude an applicant is not a fit and proper person.

Ratio Decidendi

Breach of the statutory three-month time limit by the FSA does not render the warning notice or decision notice void, nor does it result in automatic approval, as Parliament did not provide for such a consequence and the statutory scheme requires positive satisfaction as to fitness and propriety. The mere fact of being under investigation is not, by itself, sufficient to conclude an applicant is not fit and proper; all relevant circumstances must be considered.

Court Disposition

Preliminary issues determined; reference not yet substantively determined.

Orders

  • It is declared that the FSA was in breach of the statutory time limit in section 61(3).
  • It is declared that such breach does not render the warning notice or decision notice void.