THE Guernsey Financial Services Commission is doing everything it can to stamp out the so-called ‘Sark Lark’, according to its director-general Peter Neville (pictured).
All reports of Sark residents undertaking unlicensed directorship work were being investigated, he said. ‘In one case we obtained a warrant to enter premises where unlicensed fiduciary business was thought to be carried out. ‘In the event, there was only very limited evidence of unlicensed activity and the Law Officers decided, having obtained an undertaking that there would be no future activity, to administer a caution.’
In the Guernsey Press this week, a full-page letter was published addressed to the Bailiwick from Brecqhou co-owner Sir David Barclay.
In it, he acknowledged that the introduction of the 2001 Regulation of Fiduciaries legislation and the inclusion of Sark in the Bailiwick regulatory regime had made the Sark Lark more difficult, although it had not stopped it.
‘Recent research of company registries showed individuals at the highest level of Sark society with 30 Panamanian company directorships in one instance and 20 in another,’ said Sir David.
‘Another individual had 15 directorships, yet another had 12. These are just directorships in Panama. It is often impossible to make such enquiries in the likely jurisdictions.
‘It is impossible to obtain an accurate assessment of the overall picture.’
In response, Mr Neville said that while Sir David had not contacted the GFSC directly, it had looked into the cases that he appeared to be referring to publicly.
‘We have investigated what lies behind a number of entries in the Panama register of companies.
‘In some cases, the individuals left Sark some time ago or are associated with licensed fiduciaries and therefore entitled to hold directorships.
‘In others, our enquiries are continuing and, as is demonstrated by the cases I have mentioned, both previously and in my letter, we will take action if that is necessary.
‘Our action may be public or private, depending on the circumstances and the provisions of the relevant legislation.’
In addition to taking enforcement action, the GFSC had carried out on-site visits to licensed fiduciaries based in Sark since the legislation came into force – in the same way as it does elsewhere in the Bailiwick.
‘Beyond this, we have visited Sark politicians and industry representatives on the island several times.
‘We have heard their views, discussed their concerns and have explained what we are doing in respect of regulation, including in relation to the forthcoming International Monetary Fund visit,’ said Mr Neville.
‘We would be pleased to meet Sir David on this same basis in relation to his proposals.’
Article posted on 3rd July, 2008 - 11.30am
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