GFSC sanctions show importance of a healthy corporate culture

Friday 24 July 2020

Significant enforcement investigations concluded by the GFSC over the past year have highlighted the importance of establishing and maintaining a healthy corporate culture, according to a local regulatory consultant.

Amanda de Carteret, Advisory Senior Manager at BDO Cerberus in Guernsey, said the sanctions being imposed by the GFSC are significant both financially and reputationally.

She said the stakes have never been higher when it comes to maintaining a healthy corporate culture.

Recent sanctions have resulted in fines being imposed on licensed firms and directors, on one occasion totalling over £200,000 for a wide array of failures.

“Over the course of the last year, the GFSC has concluded several significant enforcement investigations which have resulted in sanctions being imposed on both licensed firms and directors," said Ms de Carteret. "These fines are serious and have certainly damaged the reputations of the firms and individuals concerned. Being sanctioned can also result in the loss of business or personal livelihoods and can impact on Guernsey’s hard-won reputation.

“It is important for boards of licensed firms to be aware of the GFSC’s findings and relate them to the context of their own operating context to avoid potentially getting into similar situations. Often this begins by establishing a healthy corporate culture which seeks to reduce the potential for harm.”

“The standards of governance and conduct required by licensed firms are similar across many industries, so a strong corporate culture is a good foundation for any firm.

“Recent sanctions have demonstrated the consequences of not addressing these issues so businesses should act now to avoid problems in the future.”

Pictured top: Amanda de Carteret.