The Gibraltar Financial Services Commission said that it has received Government approval for a so-called ‘special levy’ of £800,000, to cover the costs involved in the Marrache administration that the company’s assets were insufficient to cover.
The GFSC said it is legally authorised to implement such a levy from “all holders of licences under the Financial Services (Investment and Fiduciary Services) Act 1989” whenever “there are not sufficient funds” in a company under administration to reimburse its administrator for such costs as legal fees, staffing costs and other expenses.
Companies covered by the levy include those involved in non-Mifid investment services, insurance intermediation, insurance management, money services and fiduciary services, the GFSC said.
The exact amount each company is being required to pay is determined by a formula which may be found on the GFSC website. Under this formula, “32 firms will pay [a] flat rate of £1,500 only while 58 firms will need to pay between £2,358 and £14,172 each, and eleven firms [will] need to pay between £15,228 and £36,281 each”, the GFSC said.
Freddie White of Grant Thornton was named by the GFSC on 8 February to administer a number of companies associated with Marrache. In addition to the Marrache law firm itself, these businesses included Gibland Secretarial, Cabor Trustees and Meridian Trustees.
Licences suspended
The Marrache saga began in February when the FSC cancelled nine licences of Marrache & Co, saying that an investigation had revealed “serious and persistent breaches” of the territory’s financial services legislation. At the time, Marrache was well known in financial legal circles, where it identified itself as the only Gibraltarian law firm with offices in London, Spain, Lisbon, Prague and Luxembourg.
Three brothers who were principals of the business were subsequently arrested. The case is continuing.
