A statement on the Jersey Financial Services Commission (JFSC) website has confirmed that wealth management firm SWM has ceased trading.
It follows a dispute between the company and regulator dating back to 2014.
Quite a saga
SWM was registered to provide financial advice to individuals and businesses in relation to savings and investments, protection products and retirement planning services.
An investigation was launched into SWM in 2014 by the JFSC and concluded in 2017.
Sanctions were imposed against the advice firm in August 2018, which SWM subsequently appealed.
The Jersey Royal Court quashed some of the findings and instructed the JFSC to reconsider the sanction.
Yes but, no but
The JFSC, however, maintained that the court upheld the majority of its findings.
These included inadequate processes for due diligence, failure to maintain adequate insurance and failing to handle complaints properly.
Despite this, the JFSC “reconsidered matters in light of the findings in the judgement”.
Following an on-site inspection of SWM’s office in 2019, the regulator concluded that “whilst some shortcomings were identified, SWM, in the main, was operating in according with its policies and procedures”.
Sorry tale
Despite prevailing in court, SWM was forced to close its doors after being unable to secure professional indemnity insurance (PII).
The company ceased investment business activity before 31 December 2019 and all clients were transferred to new service providers by this date.
