Court of Appeal dismisses appeal on admissibility of FSA material as evidence in Directors Disqualification Proceedings
| Date | 20 February 2009 |
| DOI | https://doi.org/10.1108/13581980910934063 |
| Published date | 20 February 2009 |
| Pages | 76-80 |
| Author | Joanna Gray |
| Subject Matter | Accounting & finance |
LEGAL COMMENTARY
Court of Appeal dismisses appeal
on admissibility of FSA material
as evidence in Directors
Disqualification Proceedings
Joanna Gray
University of Newcastle upon Tyne, Newcastle upon Tyne, UK
Abstract
Purpose – The paper’s aim is to outline and comment on the Court of Appeal case: Secretary of State
for Business Enterprise and Regulatory Reform v. Aaron and Others, October 2008.
Design/methodology/approach – The paper outlines the facts surrounding the cas e and
comments on the ruling.
Findings – Lord Justice Thomas gave the judgment in this appeal, considering the admissible in
disqualification proceedings. However, in relation to the Secretary of State’s attempt to rely in evidence
on material in the FOS decision and the FSA final notice LJ Thomas ruled that that the implied
exception to the strict rule of evidence in Hollington v. Hewthorn did not apply so as to allow their
admission in evidence.
Originality/value – The current market crisis has focused the attention of regulatory investigators
around the world on the activities of major UK financial institutions in a number of jurisdictions in
which they were active.
Keywords Courts of appeal, Legaldecisions, Insolvency
Paper type Viewpoint
Secretary of State for Business Enterprise and Regulatory Reform v. Aaron and Others:
Court of Appeal: Civil Division: Lord Justices Thomas, Keene and Buxton.
Date of Judgment: 16 October 2008.
Facts
This appeal was brought by the appellant from a decision of the Chancery Division in
April 2008. An earlier preliminary decision in these proceedings has alrea dy been
noted in Journal of Financial Regulation and Compliance, Vol. 16 No. 1, but the facts
giving rise to the application under the Company Directors Disqualification Act 1986 of
which this appeal forms part are noted again here.
The disqualification proceedings arose following the insolvency of David M. Aaron
(Personal Financial Planners) Ltd (the company). The financial services business
carried on by the company had originally been carried on by an IFA partnership which
was later incorporated to form the company in 2000. In June 2003, FSA had launched
an investigation into the company’s activities which had led it to make certain findings
of breaches of the regulatory regime applicable to the company’s business. Those
breaches involved the mis-selling of structured capital at risk investment products
(SCARPs) to investors. In December 2003, the Financial Ombudsman Service (FOS)
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
JFRC
17,1
76
Journal of Financial Regulation and
Compliance
Vol. 17 No. 1, 2009
pp. 76-80
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581980910934063
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