Mr Mathew Newman

Mathew Newman

Updates

Insolvency & Restructuring

Royal Court issues letter of request to High Court
Guernsey | 11 January 2019

Two joint administrators recently applied to the Royal Court of Guernsey seeking an order that it issue the High Court of Justice of England and Wales with a letter of request to act in aid of and auxiliary to the Royal Court in recognising their appointment as administrators of a company. While the Royal Court has dealt with incoming letters of requests, in making the application, counsel was unaware of any case where the Royal Court's jurisdiction to issue a letter of request had previously been considered.

Guernsey schemes of arrangement
Guernsey | 06 March 2015

In Guernsey, schemes of arrangement are governed by the Companies Law. As no practice statement or direction has been used by the Royal Court to date, English practice directions and practice statements are used in Guernsey as guidance and best practice. Any member schemes relating to a Guernsey incorporated company must be brought in Guernsey.

Insolvency regime set to reform
Guernsey | 28 November 2014

The Commerce and Employment Department has published a consultation paper on various options for reforming Guernsey's insolvency regime for both personal and corporate insolvency. The paper proposes some wide-ranging reforms and seeks industry responses on various issues in order to augment, develop and regulate the insolvency regime on the island.

Private Client & Offshore Services

Royal Court issues letter of request to High Court
Guernsey | 10 January 2019

Two joint administrators recently applied to the Royal Court of Guernsey seeking an order that it issue the High Court of Justice of England and Wales with a letter of request to act in aid of and auxiliary to the Royal Court in recognising their appointment as administrators of a company. While the Royal Court has dealt with incoming letters of requests, in making the application, counsel was unaware of any case where the Royal Court's jurisdiction to issue a letter of request had previously been considered.

Guernsey Court of Appeal provides avenue of escape to tax advisers and trustees
Guernsey | 23 August 2018

The Guernsey Court of Appeal recently handed down its long-awaited judgment in M v St Anne's Trustees. On appeal, neither party had challenged the Guernsey Royal Court's decision that Guernsey law should follow Pitt v Holt. Instead, they had focused on arguing that there had been a breach of fiduciary duty and that the Royal Court should have exercised its discretion to grant relief.

Refusal of consent under AML reporting regime: Royal Court weighs in
Guernsey | 16 August 2018

The Financial Intelligence Service's recent refusal to consent to a proposed transaction under Guernsey's anti-money laundering reporting regime has resulted in the Royal Court deciding its first private law action between the person claiming the asset and the financial institution holding it. The decision clarifies the legal framework for determining the source of funds, which will be highly relevant to all regulated entities in Guernsey.

Providence: Royal Court approves litigation funding agreement
Guernsey | 16 November 2017

The Royal Court recently considered, for the first time in open court, the issue of whether an agreement with a third party to fund litigation would be void as a matter of Guernsey law on the basis that it was champertous. The lieutenant bailiff's judgment provides valuable guidance as to the contractual provisions that should be considered when third-party funding takes place.

FURBS and firewalls
Guernsey | 27 July 2017

A recent Royal Court case involved a funded unapproved retirement benefits scheme (FURBS) – a type of Guernsey trust which holds assets of significant value for the benefit of the sole member of the FURBS and, if he or she dies, for the benefit of his or her spouse. In this case, the husband and wife were going through a divorce in England and the wife sought to join the trustee into the family proceedings for the purposes of disclosure – that is, she wanted to know what assets were vested in the trust.

Lessons to be learned from recent Guernsey regulatory matter
Guernsey | 15 December 2016

A bank made a suspicious activity report to the Financial Investigation Unit due to its concerns about the potential source of funds in an account. The concerns were raised due to two articles which had been discovered in the public domain relating to an individual and his conviction by a Brussels court for value added tax fraud. It was the bank's belief that the individual was primarily the source of wealth for the account, but it did not know whether the funds were the proceeds of crime.

Royal Court and Court of Appeal scrutiny over Guernsey Financial Services Commission sanctions
Guernsey | 07 July 2016

Two recent decisions illustrate how sanctions imposed by the Guernsey Financial Services Commission are subject to the scrutiny of the Royal Court and the Court of Appeal. The decisions have revealed that there is no statutory right of appeal against the publication of a statement on the commission's website and that in assessing which sanctions to impose, the commission can consider the impact that the contravention may have on public interest.

Transfers of long-term insurance business
Guernsey | 21 January 2016

The transfer of any long-term insurance business in Guernsey is governed by the Insurance Business (Bailiwick of Guernsey) Law, which states that any such transfer must be sanctioned by an order of the Royal Court. It is often the case that an application made in Guernsey for the transfer of long-term business is made in conjunction with similar applications made simultaneously in other jurisdictions.

Royal courts approve cross-border pooling of insolvent companies' assets and liabilities
Jersey | 29 October 2015

The Royal Courts of Guernsey and Jersey recently held that where the affairs of two insolvent companies (incorporated in Jersey and Guernsey, respectively) are so intermingled that the expense of unravelling them would adversely affect distributions to creditors, the companies may be treated as a single entity. These decisions represent a welcome development in cross-bailiwick cooperation and insolvency and restructuring law.

Guernsey schemes of arrangement
Guernsey | 05 March 2015

In Guernsey, schemes of arrangement are governed by the Companies Law. As no practice statement or direction has been used by the Royal Court to date, English practice directions and practice statements are used in Guernsey as guidance and best practice. Any member schemes relating to a Guernsey incorporated company must be brought in Guernsey.

Insolvency regime set to reform
Guernsey | 27 November 2014

The Commerce and Employment Department has published a consultation paper on various options for reforming Guernsey's insolvency regime for both personal and corporate insolvency. The paper proposes some wide-ranging reforms and seeks industry responses on various issues in order to augment, develop and regulate the insolvency regime on the island.

Guernsey's company administration regime
Guernsey | 28 August 2014

The Companies Law provides for companies, protected cell companies and incorporated cell companies to be placed into administration and for an administrator to be appointed while the administration order remains in force. Administration provides a company with breathing space and stability in difficult financial times, although secured creditors may continue to enforce their rights regardless of the administration order.

White Collar Crime

Refusal of consent under AML reporting regime: Royal Court weighs in
Guernsey | 20 August 2018

The Financial Intelligence Service's recent refusal to consent to a proposed transaction under Guernsey's anti-money laundering reporting regime has resulted in the Royal Court deciding its first private law action between the person claiming the asset and the financial institution holding it. The decision clarifies the legal framework for determining the source of funds, which will be highly relevant to all regulated entities in Guernsey.