Securities and Investments Board v Scandex Capital Management A/S and Another [1998] 1 All ER
| DOI | https://doi.org/10.1108/eb025896 |
| Pages | 275-277 |
| Published date | 01 January 1999 |
| Date | 01 January 1999 |
| Author | Jason Haines |
| Subject Matter | Accounting & finance |
Journal of Financial Crime — Vol. 6 No. 3 — Financial Law
FINANCIAL LAW
Securities and Investments Board v Scandex
Capital Management A/S and Another
[1998] 1 All ER
Jason Haines
In 1995, Mr Bartholomew-White, together with
Mr Ian Farrell established a company called Euro
Currency Corporation Ltd ('Euro Currency')
intended to provide foreign exchange dealing ser-
vices.
The company started to trade in March 1995
from premises in London SW1. Later in 1995 they
decided to establish a base in Denmark, for the
purpose of expanding their activities into Europe.
They sought legal advice in Denmark regarding
incorporation from Mr Feldung and were advised
that two Danish directors would be required: Fel-
dung himself and one of his partners, Mr Paul
Petersen.
The first defendant ('Scandex') was incorporated
on 1st September 1995. On 28th December 1995
it submitted an application to the Danish financial
services regulator
(Finansstilsynet)
for authorisation
to perform investment services. The members of
the board of management were given as Bartholo-
mew-White and advocates Feldung and Petersen.
Under the board of directors the sole name given
was Mr Bartholomew-White.
For the purposes of Danish law, 1st January
1996 was a significant date. From that date it
became necessary for companies offering invest-
ment services to seek authorisation by Finans and
to do so by application made before 30th June
1996.
Under transitional provisions, a company
offering investment services prior to 1st January
1996 could continue to offer those services there-
after without prior authorisation, until its applica-
tion was either accepted or rejected. In contrast
new firms which were not offering investment ser-
vices before 1st January 1996 were required to
obtain authorisation before commencing any busi-
ness.
Scandex claimed to have begun operating
prior to 1st January and accordingly, by virtue of
its application made on 29th December, to be able
to continue operating in Denmark until the appli-
cation was determined.
Finans gave a decision on 30th September,
refusing authorisation to trade. There appeared to
be some doubt on the facts whether Scandex did
in fact begin trading before the end of 1995.
Page 275
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