The first Defendant, Scandex Capital Management AS, Scandex was a Danish company, now in liquidation, of which the second Defendant, Mr BartholomewWhite was managing director and in which he held one third of the share capital. Scandex was incorporated in September 1995 and submitted an application for authorisation to do investment business to Finans the Danish investment business regulatory authority in late December 1995. There was some confusion as to the exact date that Scandex commenced doing investment business but it was clear that by April 1996 it was sending letters to individual investors in the UK, offering investment services involving foreign exchange trading for and on behalf of UK investors had sent mailshots directed at investors into the UK had made unsolicited calls offering forex trading services and, had also made misleading statements about, inter alia, the level of commission Scandex was charging its clients. Significant losses were incurred by UK investors as a result of their dealings with Scandex. Scandex had been operating in Denmark on the basis of interim authorisation from Finans under transitional provisions of Danish law implementing the Investment Services Directive 9322EEC, hereinafter referred to as ISD, pending Finans' determination of its application for full authorisation to do investment business. When, in late April 1996, SIB enquired on what basis Scandex was coldcalling and advertising speculative forex dealing services in the UK, Scandex replied that it was doing so under the passporting provisions of the ISD since it was authorised in Denmark and therefore entitled to offer crossborder investment services. In the event, Scandex' Danish authorisation under the transitional provisions of Danish law came to an end in September 1996 when Finans considered and rejected its application for authorisation. The Danish regulator was concerned about the contents of an audit report it had asked for on Scandex, which prompted the resignation of Scandex' two Danish directors, and also the fact that there was no evidence to show that Scandex had traded in Denmark as opposed to using its office as a launch pad for approaching clients based outside Denmark.
Journal of Financial Regulation and Compliance – Emerald Publishing
Published: Apr 1, 1997
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera