​KembaraXtra-Case Law- Financial Services Authority v Scandex Capital Management (1997) CA

​I. Case Citation

• Financial Services Authority v Scandex Capital Management (1997) CA

II. Key Facts

• A Danish company (D) conducted investment business in the United Kingdom.
• This activity was in contravention of the Financial Services Act 1986.

III. Legal Issue

• Could a mistake regarding foreign law (specifically, the legality of their investment business in the UK under Danish law) serve as a defense against a charge of violating the Financial Services Act 1986?

IV. Holding

• The defendant (D) was found guilty of violating the Financial Services Act 1986.

V. Rationale (Per Millett LJ)

• Mistake of Foreign Law vs. Mistake of Fact: A mistake concerning foreign law is not considered a mistake of fact.
• Mistake of Foreign Law as Mistake of English Law: Instead, a mistake of foreign law "would be a mistake of English law."
• No Defense: Consequently, a mistake of foreign law does not constitute a valid defense in English law.

VI. Key Takeaway for Study

• In English law, a misunderstanding or ignorance of foreign law, even if genuine, generally does not absolve a defendant of criminal liability under English statutes.
• The principle "ignorance of the law is no excuse" extends to situations where the "mistake of law" originates from a misunderstanding of foreign legal frameworks, as such a misunderstanding is treated as a mistake regarding English law itself when operating within the English legal jurisdiction.