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UK Upper Tribunal permits FCA to drop £6m penalty in Danish cum-ex case following SKAT recovery concerns; industry prohibition challenge and Equality Act discrimination issues remain

Published on: 03 July 2025

Published by a Law360 reporter
Legal News
Article summary

The Upper Tribunal (UT) authorised the FCA to withdraw the penalty it had levied on Nailesh Teraiya, former chief executive of Indigo Global Partners Ltd, through a ruling on preliminary points dated 27 June 2025. The panel referred to steps by Skat, Denmark’s tax authority, to recoup about £71m in losses arising from a significant tax scandal. The FCA informed the tribunal that it was no longer in the public interest to press on with the sanction against Teraiya, alleged to have joined a sham trading arrangement to secure ‘repayment’ of €91.2m from Denmark, because Skat had indicated the fine might hinder its ability to recover further losses from Teraiya and others. Skat secured judgments against the trader in Dubai in January 2025, holding Teraiya jointly and severally liable for roughly £71m in total...

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