On appeal from: [2014] EWCA Civ 435

The Supreme Court unanimously dismissed the appeal regarding the meaning of “collective investment scheme” under the Financial Services and Markets Act 2000, s 235, following proceedings being brought against the appellants by the FCA for allegedly operating “collective investment schemes” in contravention of the 2000 Act.

In delivering the lead judgment Lord Carnwath stated that Asset Land’s activities amounted to operating “collective investment schemes” under section 235 of the 2000 Act, and were thus “regulated activities” for the purpose of section 19. He stated that the judge in the Court of Appeal was entitled to take the view that the investors’ understandings conformed to what was intended by the operator, and was not required to give special weight to contractual or other documents, without regard to their context. He also clarified that the judge was entitled to find that the relevant management of the property as a whole comprised the steps necessary to obtain planning permission and secure a sale to a developer, and it was no part of the arrangement that the investors should have any part in or control over those management activities. He concluded that the judge’s application of section 235 on the facts involved no distortion of its natural meaning or intended purpose.


For judgment, please download: [2016] UKSC 17
For Court’s press summary, please download: Court’s Press Summary
For a non-PDF version of the judgment, please visit: BAILII

To watch the hearing please visit: Supreme Court website