Woodlock Financial Services (1998) Limited (2015-02-04)

Summary

This is a public enforcement statement issued by the Guernsey Financial Services Commission concerning Woodlock Financial Services (1998) Limited, a licensed insurance and investment intermediary. It records that the Commission imposed a financial penalty and published this statement after finding Woodlock failed to meet minimum licensing criteria relating to conduct of business rules.

• Penalty: A financial penalty of £28,000 was imposed on Woodlock under Section 11D of the Financial Services Commission Law.
• Public statement: The Commission published this statement under Section 11C of the Financial Services Commission Law.
• Findings: Woodlock failed to obtain and document sufficient client information, failed to evidence suitability of advice, misrepresented the scope of its product research and risk profiling tools, failed to maintain proper records of controlled investment business, and failed to retain responsibility for an outsourced compliance function.
• Remedial steps: Woodlock implemented a remediation plan, improved record keeping and risk profiling, arranged for client transfer to another licensee, and voluntarily surrendered its licences under the Protection of Investors Law and the Insurance Managers and Insurance Intermediaries Law.
• Client notice: Clients concerned about their investments are advised to seek financial advice before making decisions, as early encashment may not be optimal; the investigation did not cover mortgage advice.

This notice is specific to Woodlock's past conduct and enforcement outcome; it does not create ongoing regulatory obligations for other licensees, though it illustrates the Commission's expectations under the Licensees (Conduct of Business) Rules, 2009.

Applies to

insurance intermediaries, investment intermediaries, licensees under the Protection of Investors Law, licensees under the Insurance Managers and Insurance Intermediaries Law