THE FINANCIAL CONDUCT AUTHORITY V AVACADE LIMITED (IN LIQUIDATION) (2)
ALEXANDRA ASSOCIATES (U.K.) LIMITED (3) CRAIG STANLEY LUMMIS (4) LEE
EDWARD LUMMIS (5) RAYMOND GEORGE FOX.
4 August 2021, Sheffield, UK
Omid Khub of Zakery Khub Solicitors:
The analysis of Adams and Avacade has now resulted in two different decisions by the Court
of Appeal. For precise details of the difference, please refer to the records of our analysis of
Adams and Avacade as presented to the Court of Appeal on 7 th and 8 th July 2021.
We are carefully considering the judgment of the Court of Appeal, including the view
expressed by Lord Justice Popplewell in relation to those UK consumers who were
introduced by Avacade and Alexandra Associates as being co-trustees of their own SIPPs.
Indeed, on 8 th July 2021, the Master of the Rolls (Sir Geoffrey Vos), expressed concern that
this could be ‘bear trap’. The views of these senior judges, (one of whom sits at the helm of
the Civil Justice System in England and Wales) taken together, reiterates our long-held view
that the claim by the FCA in fact leads to complex applicability of trust laws which
undoubtedly could have significant implications for investors and adds further complexity to
an already complex area of law. We are now considering turning to the Supreme Court for
much needed clarification in this case and in the hope to prevent others from inadvertently
falling into an unclear regulatory trap.
We note that Options SIPP have applied to the Supreme Court for permission to appeal the
related judgment of the Court of Appeal in Adams. We will be advising our clients on their
rights in relation to the same.
About Zakery Khub Solicitors
If you are affected by any of these issues including the UK consumer, introducers and the
wider financial industry, we are able to assist and advise you in order to prevent you from
inadvertently overstepping unclear regulatory lines.
Zakery Khub Solicitors specialise in providing advice on complex commercial, corporate,
and fraud matters, and a range of other civil legal issues. We are currently instructed on a
number of high-profile regulatory disputes concerning matters of a complex nature.