JFSC imposes civil financial penalty on Garfield Bennett Trust Company Limited for significant and material contraventions

Garfield Bennett Trust Company Limited (GBTCL) has been issued with a £86,803.19 civil financial penalty for negligent, significant and material contraventions of Jersey’s regulatory framework. GBTCL agreed to settle with the JFSC in this regard.

Between October 2020 and March 2022, in its capacity as Designated Service Provider, GBTCL failed to ensure that increased financial crime risks present for five Jersey Private Funds were adequately understood, documented, monitored and mitigated. GBTCL also failed to implement appropriate and adequate controls so that it had the highest regard for the interests of all investors to mitigate the risk of financial loss.

GBTCL’s failures left it vulnerable to significant financial crime risks and exposed investors to significant risk of financial loss, posing an unacceptable risk to the reputation and stability of Jersey’s financial services industry.

The JFSC has issued a public statement outlining the findings of its investigation: Garfield Bennett Trust Company Limited

Kerry Petulla, the JFSC’s Executive Director of Enforcement, Intelligence and Financial Crime commented:

“This penalty is levied against GBTCL due to the regulatory breaches identified. We consider the Board of GBTCL did not ensure it had relevant experience in JPF’s and it failed to adequately manage conflicts and high-risk factors presented in the funds. This exposed Jersey to significant risks of financial crime occurring through Jersey-based structures. Failures of this nature have the potential to undermine the integrity and stability of Jersey’s financial services industry.

We urge all financial services businesses operating in the Island to review the findings identified in the public statement issued today by the JFSC in relation to this case, and to ensure their own compliance with our regulatory framework.

This case underscores the importance of robust governance, appropriate expertise, and effective risk management in maintaining Jersey’s reputation as a well-regulated international finance centre.”

The Board of GBTCL commented:

“The Board of GBTCL note that no investors suffered any loss in relation to the Funds concerned. Nonetheless, it acknowledges the issues that occurred between 2020 and 2022 as highlighted by the JFSC and has completed remediation of the shortcomings set out in the public statement. The business has invested in its systems and controls, and the GBTCL Board has been strengthened. The GBTCL Board intends to grow the business and welcomes the opportunity to conclude this matter by way of early settlement.”

Ends.