Essex Broker is suing FSA for up to £1.67M

Essex Broker is suing FSA for up to £1.67M


In a shocking change of roles, one broker is suing the Financial Services Authority (FSA) for up to £1.67M for libel.

Adam Lucas claims that the FSA libelled him by publishing a decision notice which led to his approved persons status being removed and therefore his ability to carry out regulated activities halted. He is now suing the Authority for loss of earnings as well as damage to his reputation.

The decision notice was published by the FSA because Mr Lucas failed to pay the £1,349.41 in fees which he owed.

According to the FSA’s notice, these payments were missed “despite repeated requests” and a warning notice dated 22nd December. The FSA went on to state that failure to pay the fees was an error significant enough for them to conclude that Mr Lucas was “not conducting his business soundly and prudently and in compliance with proper standards.”

As Part of the Financial Services and Markets Act 2000, the FSA was then obligated to publicize the decision notice on their website.

However Mr Lucas does not believe that he was treated according to the specified guidelines, because as well as appearing on the Regulator’s website, the decision notice was also published in around 11 other publications, according to the Telegraph.

He explained as part of his lawsuit that the FSA had not tried to contact him using the normal or appropriate channels and that he had been abroad when the ‘repeated warnings’ were made.

When Mr Lucas, who formally owned a small brokerage firm, ‘People Loans’, returned to the country for his trip away, he found that he couldn’t take up a new job that had been offered to him because he was no longer regulated.

The FSA has had its fair share of lawsuits but it is usually on the other side of the fence. Mr Lucas’ case is still ongoing, but if he manages to successfully sue the regulator then the case is likely to form a new landmark in this area of law.

By Katie-Jill Rowland

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