Judgment That Brought Fund Directors Duties Into Focus Is Upheld

The Court of Appeal has upheld the judgment of Jack J in Minette Compson v The Chief Executive Officer of the Financial Services Commission and Brian Weal v The Chief Executive Officer of the Financial Services Commission, which provided guidance as to what, in practice, is required of persons acting as licensed directors of Experienced Investor Funds, as well as the steps such directors ought to take to ensure they are properly discharging their duties.

Advalorem Value Asset Fund Limited ("Advalorem") was a collective investment scheme registered under the Financial Services (Collective Investment Schemes) Act 2011 as an Experienced Investor Fund. Advalorem's investment objective was to invest in distressed assets on the terms set out in the offer document issued by Advalorem. The Gibraltar Financial Services Commission ("FSC") conducted an investigation into Advalorem, between February and October 2013, following which it petitioned the Supreme Court for an order