Public law remedies for breach of statutory duty by the FSA

The High Court has held in R (C) v Financial Services Authority [2012] EWHC 1417, that decision notices issued by the FSA's Regulatory Decisions Committee can be quashed on judicial review where the reasons given by the RDC are inadequate. That is the case notwithstanding that the recipient of the decision notice could refer its case to the Upper Tribunal for a rehearing.

Key points

• The claimant successfully argued that the FSA had acted in breach of its statutory duty by issuing him with a decision notice that failed to give adequate reasons explaining why his representations had been rejected, or why he had lost.
• The case demonstrates that judicial review in the High Court is available even where a statutory route of appeal exists, if (as in this case) that statutory appeal would not provide a suitable alternative remedy in the circumstances of the case.  Whether an alternative remedy is suitable will depend on the nature of the wrong alleged, and the nature of the statutory appeal.  Strictly, in this case, the statutory right was not an appeal but a right to refer a matter to the Upper Tribunal.
• The law on alternative remedy remains unchanged.  This case provides clarification that the simple existence of a statutory appeal on the merits does not, of itself, preclude judicial review.

To read our briefing on the case, click here.