Administration Management – The GFSC's Interventionist Powers And The Royal Court's Approach

The protection of investors is important for the reputation of any jurisdiction.  In the Bailiwick of Guernsey, the Guernsey Financial Services Commission (the "Commission") and the Royal Court of Guernsey have a significant role to play in that regard.

Mathew Newman, a partner in Ogier's dispute resolution team, examines some of the powers those entities possess to assist with achieving such protection, and which were enunciated in a recent decision^[1] and which is believed to be the first occasion on which such powers have been invoked.

The Protection of Investors Administration and Intervention (Bailiwick of Guernsey) Ordinance 2008 (the "2008 Ordinance") permits Commission to apply for an administration management order where it is satisfied that a relevant person has performed an act or made an omission; or will, or is likely to perform an act or make any omission that would cause undue risk to investors, and considers that the making of an order would be