The SIB sought injunctions pursuant to the 1986 Act, three to prevent continued breaches of the law and fourth, an asset freezing order. It was argued that although it might be right to dispense with a cross-undertaking in damages in relation to the first three injunctions, a Mareva was quite different and that ‘such an order was draconian in its nature, and not strictly law enforcement.’
Held: A material factor was whether the public body applicant enjoyed an immunity from damages claims. Since (a) the SIB was authorised by statute ‘to claim monetary restitution for the benefit of those who may have suffered losses as a result of the unauthorised business’, and, since (b) the remedy whether monetary or injunctive was ‘one provided by statute and is provided to the [SIB], not for [their] own benefit but for the benefit of the public at large or those who have suffered from the infringement . .’, it was appropriate for there to be no cross-undertaking in damages. In each case the injunction was sought as a means of law enforcement and that the fact that a Mareva was draconian did not prevent it being law enforcement but merely reflected the worldwide nature of the defendants’ activities.
Citations:
Times 23-Jun-1993, [1993] 4 All ER 210
Statutes:
Financial Services Act 1986, Financial Services Act 1986
Jurisdiction:
England and Wales
Citing:
Applied – In re Highfield Commodities Ltd ChD 1985
The court’s discretion in appointing provisional liquidators is unfettered provided it is exercised in a ‘proper judicial manner’. Sir Robert Megarry V-C said: ‘I would respectfully express my complete agreement with the view taken by [the judge]. I . .
Cited by:
Cited – The Financial Services Authority v Sinaloa Gold Plc and Others SC 27-Feb-2013
The FSA sought injunctions to restrain the activities of the first defendants, including asset freezing orders under section 380 of the 2000 Act. The defendant’s bankers objected that they would be prejudiced by the restrictions without the FSA . .
Lists of cited by and citing cases may be incomplete.
Litigation Practice, Financial Services
Updated: 17 July 2022; Ref: scu.89151