GUERNSEYFINANCE’S chief executive has defended his role as a non-executive director of a company whose bid for insurance giant Friends Provident has been accepted by its board.

Peter Niven (pictured) was appointed to the role with Resolution, which is domiciled in Guernsey, in 2008.

South east district deputy Janine Le Sauvage, a frequent critic of the funding of promotional agency GuernseyFinance, has raised concerns.

She queried whether the situation represented a conflict of interest for the man responsible for protecting and enhancing the island’s reputation as a finance centre.

Mr Niven’s contract with GuernseyFinance allows him, with the agreement of the board, to take on non-executive directorships with any company that does not have a ‘physical base’ in the island.

‘Resolution is a company which is domiciled here but it does not have any employees based in the island,’ he said.

There had been speculation that when the deal for Friends Provident went through, it would be moved to Guernsey.

But Mr Niven denied that. ‘Firstly, Resolution has not bought Friends Provident,’ he said. ‘It has made an offer, which is yet to be confirmed or accepted by shareholders. If the deal goes through, Friends Provident will not become a Guernsey-based company.’

Deputy Le Sauvage has raised her concerns over Mr Niven’s Resolution role with Commerce and Employment.

‘Currently, GuernseyFinance is totally funded by a grant from Commerce and Employment, which is in effect taxpayers’ money,’ she said. ‘In the past I raised the question with the minister of Commerce and Employment as to whether it was appropriate that Mr Niven, the chief executive of GuernseyFinance, should also be a non-executive director of Resolution.

‘The answer came back from Carla McNulty Bauer that there was not a conflict of interest.’