Montague and his associate also advised the fund to make a substantial investment to a special purpose vehicle in another jurisdiction.
His associate instructed that these monies be loaned to another structure in which he and Montague had an ultimate beneficial ownership.
The GFSC was not able to identify that Montague had any part in the second transaction.
Scullion & de Carteret
Scullion and de Carteret were reprimanded by the regulator for failing to provide any effective challenge to Montague at board level.
Scullion, while acting as a financial adviser, also failed to keep documentation about the advice he provided to clients.
When Montague resigned in 2015, he took with him a significant number of company records. The loss of these records and the potential data protection breaches was not fully understood or taken seriously by Scullion or de Carteret, the regulator found.
The company also lost a big tranche of data due to a dispute with Capital Solutions’ IT service provider, which was not identified until years later when the GFSC requested documents as part of its investigation.
The Guernsey regulator conceded that the directors fully cooperated with the investigation and agreed to settle. As such, a discount of 30% was applied to their fines.
Capital Solutions Limited is no longer licensed by the GFSC and Scullion and de Carteret have conducted an orderly wind down of the company.