Wednesday 6 April 2022

UK: England and Wales: restitution orders and company directors

The ICLR has published a summary for the recent Court of Appeal decision Financial Conduct Authority v Ferreira [2022] EWCA Civ 397: see here. To quote from the summary: 

"A defendant could only be liable under section 382 [(restitution orders)] of the Financial Services and Markets Act 2000 if they had knowledge of the facts which made the act complained of a contravention of the statute, which included knowledge of the factual circumstance that prevented a potentially relevant disapplication from operating ... Further, interpreting section 382 in a way that imputed to the legislature an intention to impose personal liability on directors (or others) simply on the basis that they knew of the actions that the company was taking in the course of its business would be a far-reaching step and would introduce such a radical departure from the principles of limited liability in the financial service field that such an intention should not be attributed to the legislature in the absence of some very clear indication, of which there was none"

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