News

Conflicts of interests [COI] result in IFA being prohibited from Jersey finance industry

21/05/2021

The JFSC have prohibited Mr Gufur Hussain from working in the Island’s finance industry for lacking integrity.

The JFSC

  1. Investigated Mr Hussain’s conduct after he arranged loans of more than £1million from people who were his financial advice clients
  2. Investigation concluded:
    • That he repeatedly failed to disclose conflicts of interest to the company he worked for as a financial adviser and knowingly provided the JFSC with false and/or misleading information.
    • That Mr Hussain continued to have contact with clients when the regulator had imposed directions on him not to do so.

JFSC Director General, Martin Moloney commented:

  • “Mr Hussain failed in his obligations to disclose conflicts of interest.
  • Becoming a beneficiary of a client’s investment decisions while being their adviser is the underlying source of the conflicts of interest in this kind of case.
  • Being someone’s financial adviser is a huge responsibility.
  • It is vitally important to be open and frank with your employer and the JFSC.
  • The smart thing for financial advisers to do is make sure they keep their own financing entirely separate from the investment choices of those they advise.”

The JFSC have published a public statement outlining the conclusions of its investigation. https://www.jerseyfsc.org/news-and-events/independent-financial-adviser-prohibited-from-finance-industry/

JERSEY