Broker mounts High Court libel case against FSA

A mortgage broker is suing the FSA for damages of £1.67m after it published a decision notice stripping him of his regulatory permissions last March.

In documents filed at the High Court, Adam Lucas, of Frinton-on-Sea, Essex, who ran People Loans, claims the FSA libelled him.

The FSA published a decision notice on February 2, 2010, saying that Lucas had failed to pay fees owed to the FSA of £1,349 despite repeated requests. It led the FSA to conclude that he was not conducting his business soundly and prudently.

A second notice was published a month later, after Lucas failed to respond, cancelling his permissions to carry on regulated activities, thereby removing his approved person status.

Lucas, who claims he was out of the country at the time, says that as well as appearing on the regulator’s website, this final notice was published in about 11 newspapers and magazines.

He is suing the regulator for loss of earnings and damage to his reputation on the grounds that the regulator did not attempt to contact him using the usual channels.

He says he only found out about it when he returned to the UK and received a new job offer. However, he was unable to take the post as he had lost his approved status.

In its defence filing, the FSA argues his claim should be struck out as “an abuse of process”.

The FSA says the claim has no merit.