ISLANDERS with thousands of pounds invested in funds operated by Providence, the Guernsey-headquartered investment business, could be facing losses following global regulatory moves.

Both the Guernsey Financial Services Commission and the US funds regulator, the Securities and Exchange Commission, have taken action in recent weeks and there are concerns that the island’s reputation will be hit once the full picture of Providence’s financial circumstances and that of investors becomes clear.

On Monday, the GFSC went to the Royal Court where its application to compulsorily wind up Guernsey-based Providence Global, the parent company for Providence’s worldwide activities outside of the US, was granted.

On the same day the business, which employed some 30 people at Mill House in the Charroterie, also closed.

Deloitte has been appointed liquidator, as it was made administrator to Providence Investment Funds, a Guernsey-registered protected cell company, and its manager, Providence Investment Management International, in a court sitting at the beginning of August.

Since then it has been trying to secure the records of the fund and the manager, and the position of monies lent to the Brazilian factoring company, the basis of the investments which offered annual returns of between 9 and 14.25% for those with a minimum of £30,000 to invest.

It is unclear how much has been invested into the Guernsey funds, and how much of that has come from islanders, but it is known that people in Guernsey and Jersey have invested, and the administrators are keeping them informed on progress.

The investments were widely advertised in the islands until recently. Providence said in its adverts: ‘Our reputation is built on offering an exciting alternative to traditional models, underpinned by a willingness to behave responsibly.’

Concerns have been circulating about the position of Providence’s global business for some weeks.

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