Robilliard v Chairman of the Guernsey Financial Services Commission [2023] GCA 035

Summary

This is a Guernsey Court of Appeal judgment dismissing an appeal by John Adam Robilliard, a former director of a licensed fiduciary company, against enforcement sanctions imposed on him by a Senior Decision Maker (SDM) acting on behalf of the GFSC. It is a judicial decision, not a rule or guidance document, and creates no new ongoing compliance obligations for the industry. It is included in the knowledgebase as a precedent on the GFSC's enforcement process and standard of proof.

The underlying SDM decision had found that Robilliard failed to meet fit and proper requirements (lacking probity, integrity, competence and soundness of judgment) in connection with two client matters involving beneficial ownership arrangements, and imposed a £40,000 financial penalty, a public statement, and a six year prohibition from holding certain positions. The Court of Appeal upheld the Royal Court's dismissal of his appeal on all three grounds.

• Ground 1 (burden of proof): Court confirmed the GFSC applies the balance of probabilities standard in enforcement decisions, and that the SDM did not misdirect himself by saying burden of proof was not the relevant concept.
• Ground 2 (procedural fairness): Court found no culpable failure by the GFSC to disclose relevant material and no inadequate investigation by the SDM.
• Ground 3 (probity and integrity tests): Court held the SDM correctly applied the tests for want of probity and want of integrity and was not required to make findings on the appellant's state of mind to find a lack of integrity.
• Outcome: Appeal dismissed; the SDM's financial penalty, public statement and six year prohibition against the appellant stand.

The judgment also usefully summarises the GFSC's enforcement decision making process under its Guidance Note (Decision Making Process Relating to the Use of Enforcement Powers), including the stages from Enforcement Division referral through Draft and Final Enforcement Reports, appointment of an SDM, Minded To Notices, representations, and the Decision, as relevant background for understanding GFSC enforcement procedure generally.

Applies to

licensed fiduciaries, directors of licensed fiduciaries, persons subject to GFSC enforcement action