(1)A contravention of section 56(6) or 59(1) or (2) is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
(2)In prescribed cases, a contravention of that kind which would be actionable at the suit of a private person is actionable at the suit of a person who is not a private person, subject to the defences and other incidents applying to actions for breach of statutory duty.
(3) “Private person” has such meaning as may be prescribed.
Cases considering section 71 (4)
[2011] EWHC 138 (QB) · 1 February 2011
Applies a statutory remedy for failure to take reasonable care concerning an unapproved performance of a controlled function, but the claimant must prove that the failure caused a different and more adverse outcome. (see paras [19]-[20])
Confirms the statutory route relied on by the trustees as a prescribed case where a fiduciary or representative acts for the benefit of a private person. (see para [9])
[2017] EWHC 3898 (Ch) · 31 July 2017
Confirms that a possible breach of the approved persons regime may provide a right of action against the authorised intermediary, rather than engaging section 27 against the lender (see paras [65]-[67]).
[2014] EWHC 2882 (QB) · 27 August 2014Limits
Notes that a breach of section 59 may in certain circumstances be actionable under section 71, but that the claim before the court sought relief under section 27.
What each judgment says about section 71 is in the case-law panel in the full Act.
154.If a private person suffers a loss because an authorised person has acted in breach of the duty under section 56(6) or 59(1) or (2) (failing to take care to prevent a person carrying out functions in contravention of a prohibition under section 56, or without obtaining the Authority’s approval under section 59) he may bring an action for damages against the authorised person (or an exempt person or person to whom clause 327(1) applies in the case of a contravention under section 56(6)). Subsections (2) and (3) confer powers on the Treasury, by regulations, to define a “private person” and to specify circumstances in which this section applies to a person other than a private person.