Guernsey Financial Services Commission v Weighbridge Trust Limited [2025] GRC028

Summary

This is a decision of the Guernsey Court of Appeal (Wolffe JA) on a renewed application by the Guernsey Financial Services Commission for leave to appeal a Royal Court ruling that quashed a GFSC decision to issue a public statement against Weighbridge Trust Limited (WTL) under section 38 of the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law 2020. The Royal Court had found that, despite WTL's historical failures on integrity, fiduciary duties, monitoring, record-keeping, AML/CFT procedures and conflicts of interest, issuing a public statement against the company (now under entirely new management) was unreasonable and unlawfully drafted. The Court of Appeal has now granted leave to appeal on all six grounds raised by GFSC, finding the issues have real prospects of success and public interest significance.

• Background: GFSC found WTL failed to meet Schedule 1 minimum licensing criteria under the Regulation of Fiduciaries, Administration Businesses, Company Directors etc (Bailiwick of Guernsey) Law 2020, due to historical misconduct by former personnel.
• Royal Court decision under appeal: The Lieutenant Bailiff had set aside GFSC's decision to issue a public statement, holding it unreasonable and legally flawed given a complete change of WTL's board and management since the misconduct.
• Grounds granted leave: GFSC's six grounds include: failure to weigh all section 38 factors and imposing a novel duty to minimise harm to innocent third parties; disregarding WTL's continuing corporate personality; wrongly narrowing the scope of relevant public interest; the Royal Court exceeding its jurisdiction by making its own findings; irrationality; and misapplication of the 'Walters unreasonableness' test.
• Effect of this decision: This ruling only grants permission for a full appeal to proceed; it does not decide the substantive merits, which remain for the Court of Appeal to determine after full argument.

The decision is of general interest to licensed fiduciaries and other Bailiwick of Guernsey financial services businesses because it will shape how GFSC's power to issue public statements under section 38 of the Enforcement Powers Law is tested on appeal, including how a change in ownership or management after misconduct is treated and what test of 'unreasonableness' applies.

Applies to

fiduciary licensees, trust companies, financial services businesses licensed under the Regulation of Fiduciaries, Administration Businesses, Company Directors etc (Bailiwick of Guernsey) Law 2020