Alternate Insurance Services Limited, summary public statement (2010-01-04)

Summary

This is a public statement issued by the Jersey Financial Services Commission (JFSC) under Articles 25(b), 25(c) and 25(d) of the Financial Services (Jersey) Law 1998, describing the outcome of regulatory action against Alternate Insurance Services Limited (in liquidation). It is a historical, informational notice rather than a document imposing ongoing regulatory obligations.

Alternate, a Jersey incorporated provider of insurance services and investment advice, was found by the Royal Court of Jersey to have recklessly misled vulnerable investors through advisers Robert Le Fustec and Douglas Clark. The Court ordered restitution of almost 1.6 million pounds, which Alternate could not pay, leading to liquidation and revocation of its registration by the Commission. Both advisers undertook not to give investment advice in future.

• Investor caution: Investors should not uncritically accept financial advice and should obtain a detailed written document explaining why an investment is suitable for them.
• Second opinions: Investors should be prepared to seek a second, independent opinion before committing to an investment.
• Understand the product: Investors should not invest in products they do not understand, and should assess risks and the benefits of diversification.
• Borrowing risk: Investment proposals involving borrowing carry substantially greater risk and warrant extra scrutiny.
• Terms and conditions: Investors should ensure they have read and understood terms and conditions before committing, and seek independent advice if unsure.

Applies to

insurance service providers, investment advisers, investing public