Press Release - 7 January 2003
PRIVY COUNCIL DECISION FAVOURS JERSEY FINANCIAL SERVICES COMMISSION
The Jersey Financial Services Commission today welcomed the decision of the Judicial Committee of the Privy Council in the ongoing case against Cater Allen Trust Company and others. The Privy Council refused leave to Cater Allen to appeal against an earlier appeal court judgement in favour of the Commission. The judgement in favour of the Commission therefore stands.
The Privy Council decision concerned a technical legal issue that needed to be resolved as part of an action brought by the Commission. The action concerns an investment scheme mounted in the Bahamas in the early 1990s. Many investors were introduced to this scheme through a Jersey company - A P Black (Jersey) Limited, which was administered by Cater Allen Trust (Jersey) Limited. The investment scheme collapsed and investors lost substantial sums. The Commission is asking the court to instruct A P Black and Cater Allen (and others) to pay such sums as the court may see fit, taking into account the investors' losses and the profits made. The Commission is bringing the case under Article 20(7) of the Collective Investment Funds (Jersey) Law 1988 (as amended).
Cater Allen had argued that the case be thrown out on the basis that the Law required the Commission to bring it within three years or possibly sooner. The effect of the decision of the Judicial Committee of the Privy Council is that the Commission is now at liberty to pursue its action. This it will now do.
Richard Pratt Director General JFSC said: "We welcome the decision of the Privy Council. We are now able to press on with our action. The Commission believes the court should be able to act in favour of investors who have lost money as a result of this scheme promoted from within Jersey."
For further information please contact:
Advocate Anthony Olsen, Senior Partner,