On 26th July 2024, the Guernsey Financial Services Commission published its findings against Equiom (Guernsey) Limited, a fiduciary licensee within the Bailiwick, having identified a number of regulatory failings during a visit in 2021, including:
• The failure to have an effective board responsible for governance;
• The failure to have staff of adequate number, skills, knowledge and experience;
• The failure to have effective policies, procedures and controls;
• The failure to regularly review relationship risk assessments;
• The failure to undertake reasonable measures to establish source of funds and source of wealth; and
• The failure to effectively monitor transactions and activity.
These failings were heightened by a number of aggravating factors including the client’s High-risk appetite, with approximately 68% of its client base recorded as High risk as of 2021 and a number of clients being suspected of criminal involvement. Despite a previous visit from the commission in 2017 and the subsequent remediation action taken, it was found that several key failings in 2021 were repeated issues.
The commission’s findings continue to show a close regulatory focus on both the risk assessment process and the level of due diligence applied to clients, with similar findings being recorded throughout 2024 including the cases of Fides Corporate Services Limited and Trident Trust Company (Guernsey) Limited.
As such, it remains prudent for firms to develop and maintain a regular risk assessment process to ensure they fulfil all of their regulatory obligations in line with both Schedule 3 and the handbook. Should you need any assistance with compliance matters, please reach out to compliance@aspidagroup.com
