The Financial Services Commission ('the FSC') announced today that the Supreme Court has granted the applications for a Restitution Order under Section 42 of the Financial Services (Investment and Fiduciary Services) Act against Rock Financial Services Limited ('RFSL'), Anthony Everard Whitting, Michael James Whitting and Stephen Paul Putnam and for compensatory orders under Sections 315-6 of the Companies Act against Mr Anthony Whitting, Michael Whitting and Stephen Putnam.
These orders are to pay damages in sums to be assessed by the Court. The Commission will shortly be making applications to the Court in respect of the assessment of damages in relation to those orders.
Speaking shortly after the announcement, Marcus Killick, Chief Executive
Officer of the FSC said,
"We are delighted that progress is being made and that we may be a step closer to recovering some money for those who have lost out as a result of the failures at Rock Financial Services. The FSC's action again demonstrates its willingness to act in defence of both investors and the reputation of the finance centre."
The FSC was represented in Court by Dr Keith Azopardi of Attias & Levy.
The FSC 's recent action has been as a result of a substantial
and lengthy investigation into the affairs of the company. It had previously
imposed substantial conditions on the authorisation of Rock Financial Services
Limited (Rock Financial), to carry on investment business in order to protect
the firm's customers. The firm had been first authorised in 1998.
Rock Financial was required to cease carrying on investment business from
midnight on 15 May 2003. The only exceptions to this was to allow the transfer
of customer positions and assets to another authorised firm in the European
Economic Area or the United States of America, or to close positions and return
assets to customers. In addition, the directors of Rock Financial were required
to transfer to the custody of PricewaterhouseCoopers of the International
Commercial Centre, Casemates Square, Gibraltar, all property and assets in the
form of cash and investments which belonged to the firm; or were held by or to
the order of the firm, and either belonged to investors, or related to the
investment business of the firm unless such property was being transferred or
returned.
The FSC appointed PricewaterhouseCoopers to investigate the
affairs of Rock Financial, and, in particular, whether the company properly
safeguarded customer assets as required by the Financial Services Regulations.
Rock Financial has no connection with another Gibraltar investment firm Rock
Limited which operates from Portland House, Glacis Road, Gibraltar.
On 17 June 2003, Louis Falero and Edgar Lavarello of PricewaterhouseCoopers,
Gibraltar were appointed joint provisional liquidators of Rock Financial
Services Limited by the Supreme Court of Gibraltar.