On 8 June 2020, the Guernsey Financial Services Commission (the “Commission”) decided:
To make a public statement under section 11C of the Financial Services Commission Law & to impose a financial penalty of;
- £42,000 under section 11D of the Financial Services Commission Law on GIGL;
- £17,500 under section 11D of the Financial Services Commission Law on Mr Schofield; and
- £10,500 under section 11D of the Financial Services Commission Law on Mr Robert.
The failures by GIGL, Mr Schofield and Mr Robert outlined below demonstrate a lack of competence, experience, sound judgement and diligence & as a result led to a failure to fulfil the fit and proper requirements under Schedule 7 to the Insurance Law.
GIGL failed to:
- establish, and operate within, effective systems of risk management and internal controls & failed to retain adequate oversight & accountability;
- maintain adequate liquidity or make adequate provision for depreciation or diminution in the value of its assets;
- hold regulatory capital resources greater than or equal to its Prescribed Capital Requirement in breach of paragraph 9 of the Solvency Rules; and
- deposit the annual return, accounts and audit report for the periods between 2015 & 2018.
Mr Schofield & Mr Robert, as directors, failed to:
- ensure the implementation of effective systems of control;
- ensure payments were made in a timely manner; and
- properly consider & assess the risks associated with a United Kingdom Intermediary.
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