Louvre Fund Services Limited, Kevin Paul Gilligan, Charles Peter Gervais Tracy (2016-09-19)

Summary

This is a public statement issued by the Guernsey Financial Services Commission (GFSC) announcing enforcement action against Louvre Fund Services Limited, a fund administrator, and two of its executive directors, Kevin Paul Gilligan and Charles Peter Gervais Tracy. The Commission found that all three failed to meet the minimum criteria for licensing under Schedule 4 to the Protection of Investors (Bailiwick of Guernsey) Law, 1987, in their administration of an authorised collective investment scheme structured as a protected cell company.

• Financial penalties imposed: £42,000 on Louvre Fund Services Limited, £24,500 on Mr Gilligan and £10,500 on Mr Tracy, all under Section 11D of the Financial Services Commission Law
• Public statement: Made under Section 11C of the Financial Services Commission Law naming the firm and both directors
• Key findings against Louvre: Failed to understand the Fund's risk profile, permitted a 20% audit hold-back and inter-cell loans without adequate scrutiny, did not implement enhanced compliance procedures despite recognising the Fund as high risk, and did not report its concerns to the Commission
• Key findings against the directors: Both failed to demonstrate diligence and soundness of judgement in their roles, and neither informed the Commission of known concerns about the Fund
• Mitigating factors: Louvre remediated compliance processes and proposed a new Compliance Officer, Mr Gilligan resigned as a Fund director in September 2015, and all parties cooperated fully and settled early, resulting in a discount on the penalties

The notice is a completed enforcement outcome describing past conduct and penalties already decided by the Commission on 16 September 2016; it does not itself impose any new ongoing regulatory requirement.

Applies to

fund administrators, directors of collective investment schemes, compliance officers, licensees under the Protection of Investors (Bailiwick of Guernsey) Law