Brooks Macdonald Asset Management (International) Limited, Jersey Branch (BMI) (2020-10-23)

Summary

This is a public statement issued by the Jersey Financial Services Commission (JFSC) under Article 25(d) of the Financial Services (Jersey) Law 1998, disclosing the outcome of an investigation into Brooks Macdonald Asset Management (International) Limited, Jersey Branch (BMI). It relates to BMI's compliance with the Code of Practice for Investment Business (IB Code) between 1 January 2014 and 24 July 2018, focusing on advice and discretionary management involving alternative asset class investments.

• Record keeping: BMI could not demonstrate it had appropriate record keeping arrangements throughout the period under review.
• Knowledge of client: Client financial and personal circumstance information lacked sufficient detail to meet IB Code requirements.
• Suitability: Records did not show that advice or discretionary decisions were suitable, that timely updates were given, or that fee and charge information was disclosed before transacting.
• Conflicts of interest: BMI could not show its conflicts of interest procedure was effective or properly followed.
• Complaint handling: Available records indicated complaints were not handled transparently, fairly or independently.
• Client classification: BMI could not demonstrate proper classification of certain clients as Retail or Professional.

The JFSC concluded these findings amounted to breaches of IB Code Principles 2 (highest regard for clients' interests), 3 (effective organisation and risk management) and 4 (transparency). The statement notes that since the review period BMI has changed its board, commissioned an independent operational review, implemented a new Risk Management Framework, and invested in governance, compliance and staff training. No further sanctions, fines or corrective deadlines are specified in this statement.

Applies to

investment business firms registered under the Financial Services (Jersey) Law 1998, registered persons subject to the Code of Practice for Investment Business