Bordeaux Services (Guernsey) Limited, Peter Gordon Radford, Neal Anthony Meader, Geoffrey Robert Tostevin (2016-09-07)

Summary

This is an amended Public Statement issued by the Guernsey Financial Services Commission (GFSC) following a Royal Court decision that set aside part of an earlier enforcement decision against Bordeaux Services (Guernsey) Limited and its former directors. It details revised financial penalties and prohibition orders arising from serious regulatory failings in Bordeaux's administration of the Arch Guernsey ICC Limited fund structure between 2007 and 2009.

• Revised penalty on Bordeaux: A financial penalty of £100,000 imposed on Bordeaux under section 11D of the Financial Services Commission Law, replacing the original £150,000 penalty that the Royal Court set aside.
• Prohibition order on Mr Tostevin: A two year prohibition (commencing 31 July 2015) from holding the function of controller, partner, director or manager of an entity licensed under the Protection of Investors Law and the Fiduciaries Law, replacing the original five year prohibition set aside by the Royal Court.
• Unchanged penalties: Financial penalties of £50,000 on Mr Radford and £30,000 on Mr Meader, and the five year prohibition orders against Mr Radford and Mr Meader, remain in effect from the original 2015 decision.
• Grounds for action: Findings of failure to manage conflicts of interest, late and inaccurate NAV calculations, inadequate valuation procedures for unlisted assets, poor record keeping, deficient compliance function, and inadequate board minute keeping, in breach of Schedule 4 of the Protection of Investors Law and the FNCC Rules.

The statement is primarily a record of a completed enforcement action rather than a source of new ongoing compliance requirements, but it illustrates the standards the Commission expects of designated fund administrators, directors and compliance officers regarding conflicts of interest, valuation, record keeping and compliance monitoring.

Applies to

fiduciary licensees, administration businesses, fund administrators/designated managers, directors and controllers of licensees, compliance officers