Arch Financial Products LLP, Robin Farrell and Robert Addison v The Financial Conduct Authority
| Jurisdiction | UK Non-devolved |
| Judge | Judge Herrington,Member O'Neill,Member Freeman |
| Neutral Citation | [2015] UKUT 0013 (TCC) |
| Court | Upper Tribunal (Tax and Chancery Chamber) |
| Subject Matter | Financial Services,19 January 2015 |
| Date | 19 January 2015 |
| Published date | 01 December 2016 |
[2015] UKUT 0013 (TCC)
Reference number: FS/2012/20
FINANCIAL SERVICES – investment management – management of conflicts of interest -
compliance monitoring - separation of decision making within firm acting for different
customers – whether property of open ended investment companies managed with the aim
of providing a prudent spread of risk as regards liquidity – Principles 2, 3, 8 in respect of
alleged breaches by firm and Statements of Principle 6 and 7 in respect of alleged breaches
by individual Applicants
Management of conflicts of interest in respect of four specific transactions – whether
Applicants acted without integrity – Principle 1 in respect of alleged breaches by firm and
Statement of Principle 1 in respect of alleged breaches by individual Applicants
Financial penalty and public censure – whether action against individual Applicants
prevented by limitation – s66(4), (5) FSMA – appropriate level of penalty – ss66(3), 205
FSMA
Fitness and properness of individuals – withdrawal of approvals – prohibition orders – ss56
and 63 FSMA
UPPER TRIBUNAL
TAX AND CHANCERY CHAMBER
FINANCIAL SERVICES
ARCH FINANCIAL PRODUCTS LLP (1)
ROBIN FARRELL (2)
ROBERT STEPHAN ADDISON (3)
Applicants
- and -
THE FINANCIAL CONDUCT AUTHORITY The Authority
TRIBUNAL:
JUDGE TIMOTHY HERRINGTON
SANDI O’NEILL (Tribunal member)
PETER FREEMAN (Tribunal member)
Sitting in public at 45 Bedford Square, London WC1 on 8 – 21 May 2014
Paul Stanley QC, instructed by King and Wood Mallesons LLP, for the Applicants
Monica Carss-Frisk QC and Iain Steele, instructed by the Financial Conduct Authority, for
the Authority
© CROWN COPYRIGHT 2015
GLOSSARY
AAUK Arch Advisors (UK) Limited
5 AGL Arch Group (UK) Limited
ACD Authorised Corporate Director
AFP Arch Financial Products LLP 10
AGL Transaction The transaction whereby in February and March 2007
certain Guernsey Cells invested in AGL
AIN Arch Investment Nominees Limited 15
Applicants AFP, Mr Addison and Mr Farrell
Arch Group AFP and its holding and subsidiary companies from
time to time 20
Authority The Financial Conduct Authority, previously known as
the Financial Services Authority
Bordeaux Bordeaux Services (Guernsey) Limited 25
Capita Capita Financial Managers Limited, ACD of the UK
Funds
Cell IMA An investment management agreement entered into 30 between AFP and a Guernsey Cell
CISX Channel Islands Stock Exchange
COB That part of the Authority’s handbook in force prior to1 35 November 2007 relating to the conduct of business by
persons regulated by the Authority
COLL That part of the Authority’s handbook dealing with the
regulation of collective investment schemes 40
Cru Cru Investment Management Limited
Cru Transaction The transaction whereby between February 2007 and
March 2009 certain Guernsey Cells made investments in 45 Cru
3
Decision Notices The Decision Notices issued by the Authority to the
Applicants on 14 September 2012
Distribution Agreement the distribution agreement entered into between AFP
and Cru
5 Diversified Funds CF Arch Cru Diversified Funds, an OEIC in respect of
which Capita is the ACD and AFP was the investment
manager
Finance Fund CF Arch Cru Finance Fund, a sub-fund of the 10 Diversified Funds
FSMA Financial Services and Markets Act 2000
Guernsey Cells The 22 cells incorporated by the ICC 15
Guernsey Directors Mr Neal Meader and Mr Peter Radford, directors of the
ICC and the Guernsey Cells
Guernsey Proceedings The legal proceedings brought by the Cells in Guernsey 20 against, inter alia, Mr Radford and Mr Meader
ICC Arch Guernsey ICC Limited
ICP a written investment proposal made to AFP’s 25 Investment Committee
IFA Independent Financial Adviser
IMA an investment management agreement to which AFP is a 30 party
Investment Funds CF Arch Cru Investment Funds, an OEIC in respect of
which Capita is the ACD and AFP was the investment
manager 35
Investment Funds IMA the investment management agreement entered into
between AFP and Capita pursuant to which Capital
delegated to AFP the investment management of the
Investment Funds 40
Lonscale Transaction The loans made by certain Guernsey Cells in order to
facilitate the acquisition of the Clubeasy group of
companies by Lonscale Limited
45 Mr Addison Mr Robert Addison, Compliance Officer of AFP during
the Relevant Period
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