Mr Alan Michael Chick (2018-05-31)

Summary

This is a public enforcement statement issued by the Guernsey Financial Services Commission against Mr Alan Michael Chick, a former director and controller of a Guernsey fiduciary group. It records the Commission's findings following an investigation into his conduct as a director between 1999 and 2015, and sets out the sanctions imposed on him personally.

• Financial penalty: A £50,000 fine imposed under section 11D of the Financial Services Commission Law.
• Prohibition orders: Orders under the Fiduciaries Law, Insurance Managers and Insurance Intermediaries Law, Insurance Business Law, Banking Supervision Law and Protection of Investors Law prohibiting Mr Chick from acting as director, controller, partner or manager for 5 years.
• Disapplication of exemption: Section 3(1)(g) of the Fiduciaries Law disapplied to prevent him relying on an exemption that would otherwise allow him to hold up to six directorships, on fit and proper grounds.
• Public statement: A public statement made under section 11C of the Financial Services Commission Law naming Mr Chick and detailing the findings.
• Findings: Failures included undocumented conflicts of interest in facilitating client investments in a related company, causing a corporate trustee to breach its trustee duties, and failing to apply required enhanced due diligence and internal escalation procedures for a politically exposed person transaction.

The notice also restates the general customer due diligence and enhanced due diligence obligations applicable to financial services businesses under the Criminal Justice (Proceeds of Crime) (Financial Services Businesses) Regulations and the Handbook, as context for the failings found, but it does not itself create new industry-wide rules; it is a case-specific enforcement outcome.

Key obligations

• Mr Chick is prohibited from performing the functions of director, controller, partner or manager of a regulated entity for a period of 5 years from 31 May 2018.
• Mr Chick is precluded from relying on the section 3(1)(g) Fiduciaries Law exemption and therefore may not hold up to six directorships that would otherwise be exempt.
• Mr Chick must pay the £50,000 financial penalty imposed under section 11D of the Financial Services Commission Law.

Applies to

fiduciary licensees, trust companies, corporate service providers, insurance managers and insurance intermediaries, banking businesses, investment businesses, directors and controllers of licensed entities

Deadlines

• 5 years from 31 May 2018: Duration of the prohibition preventing Mr Chick from acting as director, controller, partner or manager.