Mr Gufur Hussain (Mr Hussain) (R) (2021-05-20)

Summary

This is a public statement by the Jersey Financial Services Commission (JFSC) naming Mr Gufur Hussain (also known as Mr Ghafoor Hussain), a former investment employee and independent financial adviser, following an investigation into his fitness and propriety. The JFSC found that he lacked integrity due to undisclosed conflicts of interest, dishonesty with the regulator, and breach of regulatory directions, and it issued directions restricting his ability to work in Jersey's financial services industry.

• Undisclosed conflicts of interest: Repeatedly failed to disclose personal friendships and unsecured personal loan arrangements (totalling approximately £1,190,000) with four clients he advised as an IFA, contrary to his employer's Conflicts of Interest Policy.
• Lack of candour with the JFSC: Failed to act openly and transparently during the JFSC's investigation and knowingly provided false or misleading information, including concealing possession of a laptop and deleting loan agreement documents.
• Breach of directions: Contravened directions issued to him under Article 23(1) of the Financial Services (Jersey) Law 1998, including attending a client meeting without required supervision after his resignation.
• Sanction imposed: The JFSC issued directions under Article 23 of the FS(J)L preventing Mr Hussain from performing any function, employment or position in any Jersey-licensed financial services business without prior written JFSC approval; equivalent directions were issued under other regulatory laws and the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008.

Non-compliance with the directions constitutes a criminal offence for Mr Hussain, and any person who knowingly allows him to work in contravention of the directions also commits an offence. This is a historical enforcement notice with no ongoing filing or reporting obligations for other regulated entities.

Key obligations

• Mr Hussain must not perform any function for, engage in employment by, or hold any position in any business licensed to conduct financial services business in Jersey without prior written approval of the JFSC.
• Any person or firm must not allow Mr Hussain to perform a function, engage in employment, or hold a position knowing this would contravene the JFSC's directions.

Applies to

registered persons under the Financial Services (Jersey) Law 1998, investment business firms, independent financial advisers