Jurisdiction(s):
United Kingdom

UK Supreme Court confirms Insolvency Act 1986 s 213 covers third-party facilitators, not just management; dishonest assistance claims time-barred in carbon-credit carousel fraud

Published on: 08 May 2025

Published by a Law360 reporter

Legal News

Article summary

The UK Supreme Court has unanimously confirmed findings that Tradition Financial Services is liable to administrators seeking to recover tax debts due to HMRC, stemming from its part in arranging carbon credit trades over fifteen years ago. The justices determined that by sourcing purchasers for the credits, the firm came within section 213 of the Insolvency Act 1986 (IA 1986), which permits liquidators to ask the court to order contributions from ‘any persons’ who knowingly take part in conduct intended to defraud creditors. Tradition Financial Services — the London arm of broking heavyweight Compagnie Financière Tradition SA — acted as a third party to the trades and neither directed nor controlled the companies executing them. The deals formed part of a wider €5bn carbon trading fraud that jolted global markets nearly twenty years back. Nonetheless, the court held that, in insolvency, anyone who facilitates a fraudulent business is caught by the statute where they know the company’s business is being carried on for any fraudulent end. As the court explained, the provision imposes civil liability on a person who is knowingly complicit in fraud when they knowingly and deliberately become a party to the ongoing and continued carrying on of...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...