FSC loses main SSL appeal but succeeds on trial costs

The Financial Services Commission’s appeal concerning control of Stocks and Securities Limited succeeded only on costs below. On 31 July, the Court of Appeal upheld orders validating Caydion Campbell’s appointment and discharging temporary management.

The critical problem was evidence. The FSC had invoked a belief that SSL gave false or misleading information, but had not established the basis necessary to support that stated reason. The court therefore declined to decide the wider question whether a properly appointed temporary manager would take priority over a trustee.

The court replaced the trial costs award with no order as to costs, applying the FSC Act’s protection where wilful or reckless misconduct was not proved. However, it awarded the respondents 80 per cent of appeal costs. Liberty to pursue an inquiry under the injunction undertaking remained; no damages award was made in this appeal.

Full 37-page appellate judgment reviewed. It does not determine investors’ recoveries or establish a general trustee-priority rule. Subsequent proceedings were not checked.