The Jersey Financial Services Commission (JFSC) has banned Christopher Byrne from performing any function for, engaging in any employment by, or holding any position in, any business regulated or supervised by the JFSC without written approval of the regulator.
This follows an investigation into the former financial adviser, who was managing director of Lumiere Wealth.
The regulator said that Byrne held a trusted position as a financial adviser, however he “fraudulently provided clients with unsuitable and misleading advice and dishonestly facilitated a loan from a vulnerable client for his own personal benefit”.
Despite being cautioned by the JFSC not to do so, Byrne provided a number of clients with financial advice prior to Lumiere being a regulated investment business, preventing the JFSC from having any oversight of the advice provided.
He also provided the JFSC with “false and misleading information to conceal facts and pertinent information he knew would be material to the JFSC’s enquiries”.
Byrne was convicted of several offences relating to his conduct as a financial adviser, and was sentenced on 30 November 2018 to a seven-year prison term.
He was found guilty of dishonesty offences against several of his former Lumiere clients, providing the JFSC with false and/or misleading information and carrying on unauthorised investment business.
‘Significant risk’
Kerry Petulla, JFSC executive director of enforcement, said: “The role of a financial adviser requires independence and unbiased advice, with no influence from product providers.
“Byrne, like all advisers, was required to have the highest regard for his clients but our investigation revealed that he prioritised his own and the company’s financial interests over the clients interests, resulting in unrecoverable client losses of approximately £12m ($13.7m, €13.8m).
“We have concluded Byrne misled clients and the JFSC and his actions were dishonest and he lacks integrity. Byrne’s conduct poses a significant risk to the JFSC’s guiding principles and objectives and therefore it is necessary to restrict his employment in Jersey’s financial services industry”.
The JFSC warned that any person or business who allows Byrne to perform a function, engage in employment or hold a position within or related to the Jersey financial services industry shall commit an offence.
