Allied Trust Company Limited, and Messrs Antony Kurt Bryans (R), Michael John Lezala (R), Pierre Humphrey Stonborough (R), and Mrs Michelle Clark (R) (2015-06-11)

Summary

This is a public statement issued by the Jersey Financial Services Commission under Article 25 of the Financial Services (Jersey) Law 1998 concerning Allied Trust Company Limited and its affiliated entities, together with four individuals who served as its directors (the Principals). It follows a preliminary review that identified serious corporate governance and anti-money laundering failings in the conduct of trust company business between 2006 and August 2014.

• Key failings identified: Allied facilitated significant cash collection and deposit services for customers with overseas institutions without adequate oversight; failed to maintain appropriate records; placed excessive reliance on customer intermediaries without assessing rationale; allowed transactions to occur without adequate knowledge or assessment; and operated an ineffective anti-money laundering function.
• Codes breached: The Commission found breaches of Principles 1 (integrity), 2 (regard for customers' interests, skill, care and diligence) and 3 (effective organisation and risk management) of the Codes of Practice for Trust Company Business.
• Regulatory action: Each Principal has been issued directions under Article 23(1) of the FS(J)L (and equivalent provisions of other regulatory laws) barring them from performing any function, employment or position in a registered person's business, or any financial services business function, without first obtaining the Commission's prior consent.
• Corporate outcome: The entire Board of Allied agreed to step down, and Allied has since been sold and is now part of a larger regulated trust company business.

The statement is retrospective and informational in nature, documenting completed enforcement action rather than imposing new ongoing obligations on the wider industry, though it serves as a warning on governance and AML standards expected of trust company business directors.

Key obligations

• The named Principals (Antony Kurt Bryans, Michael John Lezala, Pierre Humphrey Stonborough, Michelle Clark) must obtain the Commission's prior consent before performing any function, engaging in any employment, or holding any position in the business of a registered person, or performing any financial services business function under Article 2 of the FS(J)L.

Applies to

trust company business, registered persons under the Financial Services (Jersey) Law 1998