Mr Bruce David McNaught (2019-08-09)

Summary

This is a Guernsey Financial Services Commission public enforcement statement (not a rule of general application) concerning a named individual, Mr Bruce David McNaught, a former director, controller and Money Laundering Reporting Officer of a Guernsey-licensed fiduciary. It records penalties and prohibitions imposed after the Commission found he carried out and offered unlicensed company incorporation services through a separate business, Candie Accounting, and was found not to be a fit and proper person under several regulatory laws.

• Financial penalty: A financial penalty of £13,000 was imposed on Mr McNaught under section 11D of the Financial Services Commission Law.
• Prohibition orders: For 4 years, Mr McNaught is prohibited from holding positions such as director, controller, partner, manager, financial adviser, general representative or authorised insurance representative, and from acting as MLRO or Compliance Officer, within any entity licensed under the Fiduciaries Law, IMII Law, Insurance Business Law, Banking Supervision Law or POI Law.
• Exemption disapplied: The exemption under section 3(1)(g) of the Fiduciaries Law was disapplied in respect of Mr McNaught for 4 years.
• Public statement: A public statement was issued under section 11C of the Financial Services Commission Law, detailing the findings, mitigating and aggravating factors.

The underlying findings illustrate that company incorporation is a regulated activity under the Fiduciaries Law requiring a full fiduciary licence, and that using an employer's Registry access to conduct unlicensed personal business, without disclosure, can result in a finding of unfitness and multi-law prohibition. The notice is primarily of historical and precedent interest rather than imposing forward-looking obligations on the wider industry.

Applies to

licensed fiduciaries, prescribed businesses, directors and controllers of licensed entities, Money Laundering Reporting Officers, Compliance Officers

Deadlines

• 4 years from 8 June 2018: Duration of the prohibition on Mr McNaught holding specified positions or acting as MLRO/Compliance Officer within licensees, and of the disapplication of the section 3(1)(g) Fiduciaries Law exemption.