- with Finance and Tax Executives
- with readers working within the Banking & Credit, Oil & Gas and Securities & Investment industries
The Guernsey Financial Services Commission (the GFSC) has welcomed the Court of Appeal judgment relating to the long-running Providence enforcement procedure. This judgment confirms several key findings of wrongdoing originally made by the GFSC's Senior Decision Maker and enables the GFSC to publish those findings for the first time.
Background:
This case relates to a fraudulent Ponzi scheme operated by Providence in the mid-2010s. The GFSC has worked closely with the U.S. Securities and Exchange Commission (SEC) over the past decade to address the failings within the Providence entities. Several former directors are currently serving prison sentences in the United States.
Key points:
- Wrongdoing confirmed: The Court of Appeal has
placed several previously disputed instances of misconduct into the
public domain, confirming the GFSC's original findings
- Process endorsed: The judgment supports the
GFSC's enforcement process and upholds the reasoning of its
Senior Decision Maker, despite challenges from multiple
parties
- Further legal steps: The Royal Court has been
asked to reconsider certain matters, and the GFSC may be required
to undertake further work depending on the outcome
- Guidance for directors: The judgment offers
practical insights into acceptable and unacceptable conduct for
company directors operating under pressure
- Human rights compliance: The Court of Appeal has confirmed that the GFSC's enforcement procedures comply with Article 6 of the European Convention on Human Rights
Commission's position:
While acknowledging the time it has taken to reach this point,
the GFSC continues to view the enforcement process as essential to
exposing serious misconduct. The GFSC notes that no supervisory
regime system can be entirely fool proof against individuals intent
on criminal activity, however, it remains committed to engaging
with individuals on the assumption that they act with honesty and
integrity.
Our key takeaways from the Court of Appeal judgment can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
