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Regulated activities - consent order
Fortwell Finance Ltd v Halstead
 EWCA Civ 676
- A consent order in mortgage possession proceedings compromised any issue that the mortgage was unenforceable as having been entered into in contravention of the general prohibition in Section 19 FSMA 2000.
- Neither was the consent order itself a regulated activity which had been entered into in breach of the general prohibition.
On 19 Aug 2013 FF granted H a 12-month loan of £2.36M secured by a first legal charge on residential property which comprised three flats in the course of conversion to a single residence. On the loan application form, H gave an overseas address. FF was not an ‘authorised person’ and regarded this as an unregulated loan for the purposes of the FSMA 2000 (Regulated Activities) Order 2001. A special condition of the loan was that the borrower shall not occupy the property as a dwelling.
Following default in repayment after 12 months, FF appointed receivers, and subsequently issued proceedings for possession which were initially compromised by a consent order for possession in 28 days. Following further default, FF obtained a warrant for possession. H applied to set aside the consent order and to suspend the warrant. A deputy district judge initially refused the stay, and an appeal against his decision was refused by a circuit judge. FF contracted to sell the property.
The court subsequently listed the applicatio ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW
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