RECORD-KEEPING AND DOCUMENTATION The SDM had found that “Bordeaux’s level of control over the role of the Investment Manager was significantly reduced by not maintaining or having sight of original documentation.” He also found that transaction documents were missing for up to a year and a half and “[w]hilst, at all material times Bordeaux was […]

THE COURT The Court made USEFUL FINDINGS ON how SDMs should come to their findings, and What matters should be set out in their decisions. The Court also helpfully provided IMPORTANT GUIDANCE on the roles and responsibilities of Boards of licensees when carrying out their functions as a Designated Manager and Fund Director. The Court […]

This is the first of a three part news item The Guernsey Royal Court gives clear guidance on roles and responsibilities of Designated Managers Background On 11 May 20161 , the Royal Court of Guernsey allowed in part an appeal from a decision by the Guernsey Financial Services Commission (the GFSC) to impose sanctions for […]

How much can advisers really be expected to know about problem investments before they turn sour? Keydata and Arch cru collapsed separately six years ago, but important new details about who and what caused the multi-million pound failures are still filtering out. Advisers were among the first to be blamed, if not for causing the […]

The Guernsey Financial Services Commission has handed out fines to the Arch cru administrator Bordeaux and three of its directors for their role in the collapse of the funds. Bordeaux has been fined £150,000, while directors Peter Radford, Neal Meader and Geoffrey Tostevin have been hit with penalties of £50,000, £30,000 and £30,000, respectively. In […]

In a judgment dealing with the collapse of the Arch Cru Funds (the Funds), the High Court has re-examined and clarified the law applying to investment managers. SPL Private Finance (PF1) IC Ltd and others v Arch Financial Products LLP  In awarding over £22 million in damages against the investment manager and its Chief Executive […]

Mr Justice Walker provided  a decision in Arch provides that provides a rare restatement of the liability of investment managers in English law (SPL Private Finance (PFI) IC Ltd v Arch FP LLP [2014] EWHC 4268 (Comm)) We have set out below the top 10 points arising from Arch which are, in our view, the […]

Following the Upper Tribunal’s decision concerning two non-executive directors of Arch Financial Products LLP (Arch) the FCA has published final notices. The FCA has: Imposed a £200,000 fine on Robert Addison, Arch’s former compliance officer, for breaches of Principles 1 and 7 of the FCA’s Statements of Principle for Approved Persons, withdrawn his permission to […]