Stewart Owen Ford and Mark John Owen v The Financial Conduct Authority
| Jurisdiction | UK Non-devolved |
| Judge | Judge Berner,Member Dale,Member Freeman |
| Neutral Citation | [2018] UKUT 0358 (TCC),[2018] UKUT 0358 (TCC) |
| Court | Upper Tribunal (Tax and Chancery Chamber) |
| Subject Matter | Financial Services,6 November 2018 |
| Date | 06 November 2018 |
| Published date | 06 November 2018 |
[2018] UKUT 0358 (TCC)
Reference numbers: FS/2014/005
FS/2014/006
FINANCIAL SERVICES – distribution by Keydata Investment Services
Limited of bonds issued by SLS Capital S.A. and Lifemark S.A. backed by
US life settlements – conduct of Mr Ford and Mr Owen – whether breach of
Statement of Principle 1 (integrity) and Statement of Principle 4 (relations
with regulators) – whether “fit and proper” – prohibition orders – FSMA, s
56 – financial penalties – FSMA, s 66 – disgorgement
UPPER TRIBUNAL
TAX AND CHANCERY CHAMBER
FINANCIAL SERVICES
(1) STEWART OWEN FORD
(2) MARK JOHN OWEN
Applicants
- and -
THE FINANCIAL CONDUCT AUTHORITY
Respondent
TRIBUNAL:
JUDGE ROGER BERNER
MS SUE DALE
MR PETER FREEMAN
Sitting in public at The Royal Courts of Justice, The Rolls Building, Fetter Lane,
London EC4 on 5 October to 8 November 2017 and following further written
submissions completed on 30 April 2018
The Applicants, Mr Ford and Mr Owen, in person
Andrew George QC and Daniel Burgess, instructed by the Financial Conduct
Authority, for the Respondent
© CROWN COPYRIGHT 2018
DECISION
Contents
Introduction
[1]
Glossary of terms
[3]
Outline of the parties’ cases
[4]
The Authority’s case in outline
[6]
The cases of Mr Ford and Mr Owen in outline
[7]
The law
[8]
Statements of Principle
[13]
Regulatory guidance
[23]
Guidance on prohibition orders
[25]
Guidance on financial penalties
[30]
The Tribunal’s jurisdiction
[32]
Burden and standard of proof
[36]
The evidence
[45]
Evidence of fact
[45]
Expert evidence
[55]
Life settlements
[62]
Background
[69]
Governance and senior roles at Keydata
[78]
Creation of the SLS Products (May to December 2005)
[99]
The KPMG Model and the ongoing role of KPMG
[127]
Credit facility
[145]
Currency hedge
[147]
3
Listing
[149]
The marketing of the SLS Products
[153]
The SLS Brochures
[153]
Mr Owen and the Press
[160]
Mr Ford becomes entitled to a “fee” of 1.5% of sums
invested in SLS bonds
[170]
The KPMG “cease and desist” letter
[190]
More problems identified with SLS
[208]
The creation of the Lifemark structure
[220]
Mr Ford’s ownership of Lifemark
[230]
Lifemark fees paid for the benefit of Mr Ford
[244]
Orietex/LAS Global
[245]
LAS International
[263]
Were the Lifemark fee arrangements concealed?
[277]
Mr Ford’s use of the extracted monies
[296]
The Lifemark model
[300]
Issues with the SLS Products
[330]
Issues with Lifemark
[352]
Meditron Report 1 and the rollover assumption
[352]
Developments with respect to SLS
[356]
The Grant Thornton reports
[372]
Liquidity problems
[381]
The Grant Thornton March 2008 due diligence report
[402]
Meditron 2 and Due Diligence advice from Grant Thornton
[413]
Issues with SLS payments to Keydata
[441]
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