X, Y and Z v Chairman of the Guernsey Financial Services Commission [2023] GRC 032

Summary

This is a judgment of the Royal Court of Guernsey (Ordinary Division) deciding a joined appeal by three individuals (X, Y and Z) against a decision of the GFSC's Senior Decision Maker (SDM) dated 23 March 2021. The SDM had found that each appellant failed to meet the fit and proper requirements under the Fiduciaries Law, the POI Law and the IMII Law in connection with their roles at a licensed fiduciary business, and had imposed financial penalties, prohibition orders and a public statement.

Grounds and outcome

• Process challenge: The appellants argued the SDM process breached natural justice because the SDM is an officer of the GFSC; the Court rejected this, finding the SDM has no interest in the outcome and the process built in independence.
• Substantive findings: The Court reviewed the SDM's findings on fitness and propriety, use of client agreements, handling of specific trust/company matters, and the reasoning behind sanctions imposed on each appellant.
• Result: All appeals were dismissed except that X's appeal succeeded on two limited challenges to the wording/content of the public statement issued about him; the sanctions and prohibition orders against Y and Z were upheld as proportionate.

The judgment is primarily of precedential interest for how the Royal Court reviews GFSC enforcement decisions (SDM process, natural justice, proportionality of sanctions and public statements) rather than a document imposing new ongoing compliance obligations on the wider industry.

Applies to

fiduciaries, licensed trust and company service providers, directors and officers of licensed fiduciary businesses, money laundering reporting officers

Deadlines

• within 28 days of the formal handing down of this judgment: Any applications arising from this judgment must be lodged within this period.