The Commercial Court has confirmed that an individual investor, with substantial means and more knowledge and experience than the average person, may still be considered a ‘consumer’ for the purposes of Article 17 of the Recast Brussels Regulation (No 1215/2012), even when contracting to trade a specialised product such as cryptocurrency futures: Ramona Ang v Reliantco Investments Limited [2019] EWHC 879 (Comm).

Where article 17 applies, the consumer can only be sued in the courts of their domicile, whereas the consumer has a choice as to whether to bring proceedings in that court or in the courts of the defendant’s domicile. These provisions will trump an exclusive jurisdiction clause in the relevant contract (subject to limited exceptions, such as where the jurisdiction clause is entered into after the dispute has arisen).

The decision provides some clarification as to the test to be applied when considering whether an individual investor is a consumer for these purposes. It emphasises that the key question is the purpose for which the investment was entered into, and whether (as article 17 requires) that purpose can be regarded as being outside the individual’s trade or profession. Each case will turn on its facts.

For more information see our Banking litigation e-bulletin on the decision.