JFSC v Equity Trust & Ors [2007] JRC 229 (05 December 2007)

JFSC v Equity Trust & Ors [2007] JRC 229 (05 December 2007)

The interests of investors require a trustee and manager who are not conflicted and are solely focused on their interests. If Walbrook cannot take up its appointment, Ernst & Young should be appointed as trustee and manager, and to carry out the investigation, to ensure independence and avoid conflicts.

Citation
[2007] JRC 229
Parties
Applicant: Commission; Respondent: Equity Trust (Jersey) Limited; Respondent: Equity Trust Services Limited
Jurisdiction
Jersey
Judgment Date
05 December 2007
Procedural Posture
Application / Interlocutory Ruling
Outcome
application granted
Legal Topics
Removal of Trustee, Conflict of Interest, Appointment of Functionary
Trusts Investment Funds Removal of Trustee Conflict of Interest Appointment of Functionary

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Parties

Commission

Applicant

Equity Trust (Jersey) Limited

Respondent

Equity Trust Services Limited

Respondent

Procedural Posture

Application / Interlocutory Ruling

Legal Issues

  1. 1 Whether Equity Trust entities should remain as trustee and manager pending appointment of replacement functionary
  2. 2 Whether conflicts of interest preclude Equity from continuing
  3. 3 Appropriate procedure for investigation into investor interests

Ratio Decidendi

The interests of investors require a trustee and manager who are not conflicted and are solely focused on their interests. If Walbrook cannot take up its appointment, Ernst & Young should be appointed as trustee and manager, and to carry out the investigation, to ensure independence and avoid conflicts.

Court Disposition

application granted

Orders

  • Part 3 of the draft order approved: If Walbrook cannot take up appointment, Ernst & Young Appointed Functionaries (Jersey) Limited to be appointed as trustee and manager of the Bulgaria Fund, Croatia Fund, and Montenegro Fund; Ernst & Young to carry out the accounting investigation.