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14 March 2014
Issue: 7598 / Categories: Case law , Law digest , In Court
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Financial services

Financial Conduct Authority v Capital Alternatives Ltd and others [2014] All ER (D) 03 (Mar)

Section 235 of the Financial Services and Markets Act 2000 was not to be construed narrowly, but conservatively. The application of s 235 depended on the specific facts of the case as determined by the court. It was settled law that the Financial Conduct Authority did not have to prove breaches of the Act beyond reasonable doubt. Further, that “arrangements” had a wide meaning and might include non-contractual arrangements which existed on their own or on parallel with contractual arrangements. Section 235 referred to the “purpose or effect” of the arrangements. What mattered was the way in which the scheme was run in practice, not contractual terms, which might not reflect reality. It would be possible for investors’ participation in important decisions to justify finding that the operator’s management was not “as a whole” within s 235(3)(b), while not being sufficient to amount to day-to-day control within s 235(2). Equally, there was no reason to exclude the complete absence of any investor

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MOVERS & SHAKERS

NLJ Career Profile: Stephen Ward, The Barrister Group

NLJ Career Profile: Stephen Ward, The Barrister Group

From mowing lawns to life at the Bar: Stephen Ward reflects on an unconventional career

Clarke Willmott—Ben Loosemore

Clarke Willmott—Ben Loosemore

Commercial property partner joins Clarke Willmott in Southampton

Ellisons—Robert Tiffen

Ellisons—Robert Tiffen

Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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