Business
Finance Firm’s License Revoked
Wilton (IOM) Limited had previously had an interim receiver imposed on it by the High Court.
A Douglas based finance business has had its license revoked after several breaches of the financial services rules book.
Wilton (IOM) Limited had previously had an interim receiver imposed on it by the High Court.
In a statement, the island’s Financial Services Authority said its decision was ‘reasonable, appropriate, necessary and proportionate’ after ‘a number of failings within and by Wilton’.
The corporate and trust services provider had held its licence since January 2009.
However, the firm had ran into financial difficulties in recent months, with the interim receiver noting that its Professional Indemnity Insurance, which is it required to have in place under the rule book, had expired and there was insufficient money available to pay for new cover. This was its first breach.
At the time of revoking its licence, the FSA found that the company no longer had sufficient staff to carry out regulatory compliance or financial crime prevention functions, its second breach.
Thirdly, the company was, in the opinion of the court appointed interim receiver, ‘both cash flow and balance sheet insolvent’.
The final breach was that its auditor withdrew its audit opinion and as such, Wilton was in further breach of the rule book as it failed to submit audited accounts to the Authority for the year ended 30 April 2023.
As a result of these breaches and the opinion of the interim receiver, the FSA has concluded that Wilton does not have the required resources to sustain ongoing licence requirements.
The FSA said: ‘The Authority is satisfied that the revocation of Wilton’s licence in its entirety under section 9(1) of the Act reflects the serious nature of the failings of Wilton and believes that it is desirable in the public interest to issue this statement.
‘Furthermore, in light of the seriousness of those matters detailed herein, the Authority is of the opinion that immediate action and publication of this statement is necessary, as permitted in accordance with section 13(6) of the Act.’
