KVB Consultants Ltd & ors v Jacob Hopkins McKenzie Ltd & ors
Wednesday 12 June 2024
By an Appellant’s Notice filed on 22 September 2023, the Appellant, Kession Capital Limited (the 12th Defendant in this action), appeals the Order, dated, 18 August 2023 of Paul Stanley KC sitting as a Deputy High Court Judge in the Commercial Court in which he granted summary judgment against the Appellant and Ordered the payment of liquidated damages and costs.
Background:
1. The Appellant is a business regulated by the FCA. The Appellant appointed the First Defendant in the proceedings (“JHM”) as an authorised representative in respect of eight investment schemes involving investments in property development opportunities, sourced and managed by JHM.
2. The investments failed and the Respondent investors, commenced claims against JHM, associated individuals, the SPV companies involved in each investment and the Appellant.
3. The issue in the application before the Judge was whether the Appellant was responsible for JHM’s conduct under section 39 of FSMA 2000.
4. The Judge held that the advice and promotion activities in respect of the investment schemes fell under the s39 authorisation, such that the Appellant was responsible. The Judge ordered summary judgment with liquidated damages and costs.
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