THE FINANCIAL CONDUCT AUTHORITY (FCA) V AVACADE LIMITED (IN LIQUIDATION) (2)ALEXANDRA ASSOCIATES (U.K.) LIMITED (3) CRAIG STANLEY LUMMIS (4) LEEEDWARD LUMMIS (5) RAYMOND GEORGE FOX.
4 August 2021, Sheffield, UK
Omid Khub of Zakery Khub Solicitors:
The analysis of Adams and Avacade has now resulted in two different decisions by the Courtof Appeal. For precise details of the difference, please refer to the records of our analysis ofAdams and Avacade as presented to the Court of Appeal on 7 th and 8 th July 2021.
We are carefully considering the judgment of the Court of Appeal, including the viewexpressed by Lord Justice Popplewell in relation to those UK consumers who wereintroduced by Avacade and Alexandra Associates as being co-trustees of their own SIPPs.
Indeed, on 8 th July 2021, the Master of the Rolls (Sir Geoffrey Vos), expressed concern thatthis could be ‘bear trap’. The views of these senior judges, (one of whom sits at the helm ofthe Civil Justice System in England and Wales) taken together, reiterates our long-held viewthat the claim by the FCA in fact leads to complex applicability of trust laws whichundoubtedly could have significant implications for investors and adds further complexity toan already complex area of law. We are now considering turning to the Supreme Court formuch needed clarification in this case and in the hope to prevent others from inadvertentlyfalling into an unclear regulatory trap.
We note that Options SIPP have applied to the Supreme Court for permission to appeal the related judgment of the Court of Appeal in Adams. We will be advising our clients on their rights in relation to the same.
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If you are affected by any of these issues including the UK consumer, introducers and thewider financial industry, we are able to assist and advise you in order to prevent you frominadvertently overstepping unclear regulatory lines.
Zakery Khub Solicitors specialise in providing advice on complex commercial, corporate,and fraud matters, and a range of other civil legal issues. We are currently instructed on anumber of high-profile regulatory disputes concerning matters of a complex nature.