The father-and-son businessmen were disqualified in 2021 over the liquidation of Avacade in 2015. Lord Justice Snowden of the Court of Appeal has now granted permission to appeal the disqualification.
A statement published on behalf of the duo said: "Lord Justice Snowden confirmed that the Secretary of State did not, in fact, allege during proceedings that Avacade Ltd was insolvent. This means that, as they argued at court, the Lummises as directors were not automatically required to hold a sum in reserve to settle a potential claim by HMRC."
The FCA's case against Avacade introducers was previously upheld by the Court of Appeal in August 2021.
Last year, the High Court agreed that Avacade, Craig Lummis and Lee Lummis engaged in arranging and promoting investments without FCA authorisation and made false and misleading statements to investors which induced them to transfer their pensions into self-invested personal pensions (SIPPs). This was then transferred into alternative investments such as HotPods (office space available for rent), tree plantations and Brazilian property developments.
More than 2,000 consumers transferred in the region of £91.8m from their pensions into SIPPs. Approximately £68m of that amount was invested in products promoted by Avacade and AA and approximately £905,000 was invested into a fixed rate bond relating to a Brazilian property development. From these investments Avacade and AA earned commissions in the region of £10.8m.
Many of the underlying investments have failed or are in liquidation.
The High Court made an order in August 2020 against Avacade, AA, Craig Lummis, Lee Lummis and Raymond Fox to pay a total of £10,715,000 in restitution to those who transferred their pensions into SIPPs.
