Corporate & Commercial

Ferbrache & Farrell LLP’s corporate department offers full service corporate, banking and commercial cover and is able to advise on all aspects of Guernsey corporate and commercial law, including banking and finance, regulatory, investment funds, asset management and listings on The International Stock Exchange (TISE).

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Dispute Resolution

The dispute resolution department at Ferbrache & Farrell LLP has vast experience of local and international litigation and dispute resolution generally, gained from acting in complex local and international high-value disputes, both in Guernsey and throughout the world.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Property

The Guernsey property department is dedicated to providing tailored solutions that meet and exceed clients’ expectations. In addition, the property department provides support to colleagues in the corporate and dispute resolution departments on real estate-related technical points of law.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
UK Real Estate

We are delighted to help in relation to providing legal advice for real estate in England and Wales. We listen. We learn what your needs are. We proactively respond. Whether it’s personal or commercial property, we always provide sound and pragmatic advice, adding value to the transaction.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Private Client

Our services for private client matters include the drafting of realty and personalty wills, acting as professional executors, and assisting foreign lawyers who have requirements in this jurisdiction.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…

All in all, it was just not your bricks in the wall

The Pink Floyd guitarist, David Gilmour, has been forced to make an application to the High Court of England and Wales because the £10m seafront property he is trying to sell does not actually belong to him.

How has this happened? Well, the property was purchased by Mr Gilmour through an English company in 2011.  That company was subsequently dissolved in 2014, but the property had remained in its ownership.  When a company is dissolved, any property which it owns at the time of the dissolution passes to the Crown by law, this is known as bona vacantia.

This situation in respect of such a valuable property seems surprising, but it is not unusual. On this occasion it appears to be as the result of an administrative error in failing to transfer any assets out of the company before dissolution. It more frequently occurs when a company is subject to compulsory strike off, for example, because of failing to make appropriate filings with the company registry. On other occasions, assets which may seem worthless at the time of dissolution become valuable later, for example a claim in a liquidation.

So what is the solution? In the circumstances, certain parties such as a former director or shareholder of a company can apply to Court to restore the dissolved company to the register. If a company is restored with six years of having been struck off, that company is entitled (subject to any order of the Court) to have any property vested in the crown returned to it.  If such property has been disposed of, the company is entitled to its value at the time of disposal.

The Court has discretion to extend the six-year period in respect of the property if it is equitable to do so in the circumstances, however, any application to restore a company must be made within 10 years of the company being struck off.

Any person applying for the restoration of a company must serve notice of the intended application of the Registrar of Companies, H.M. Procureur (Guernsey’s Attorney General) and H.M. Receiver General.  Notice must also be given to any liquidator or administrator of the company if relevant and the Guernsey Financial Services Commission if it was a regulated company.

The application made by David Gilmour was only in the news last week, and it is not clear when the application was first made, but if it had been in Guernsey Mr Gilmour would be dangerously close to the end of the 10-year period in which the restoration application must be made.

Take-aways: The obvious point is to manage your company effectively to avoid compulsory strike off, or to ensure all assets or potential assets have been properly considered if applying to dissolve the company.  However, if the company has been dissolved, any application to restore must be made within 10 years, and ideally six years if it relates to property now bona vacantia.

We are frequently instructed in respect of applications to restore a company and are happy to assist. Please contact Robin Gist, Alison Antill or Charlotte Tomlinson, or your usual contact at Ferbrache & Farrell, for any advice on this issue.

Whilst the statutory regime in Guernsey is similar to that in England and Wales, the volume of statute and case law on employment legislation in Guernsey is gradually increasing.

In this white paper updated for 2024, Alison Antill, Robin Gist and Charlotte Tomlinson take an in-depth look at local employment law and its impact on employers and employees.

Download the guide here.

Following the issuance of the Bailiwick of Guernsey Consent Regime (the Guidance) by the FIU in April 2023, the role of Money Laundering Reporting Officer (MLRO) has become increasingly challenging.

Filing a SAR

An MLRO is obligated to file a Suspicious Activity Report (SAR) where they think there is a more than fanciful possibility, that relevant facts exist. These facts are that another person:

  • is engaged in money laundering or holds proceeds of criminal conduct;
  • is engaged in terrorist financing or holds the proceeds of terrorist property; or
  • is engaged in or holds the proceeds of the proliferation of weapons of mass destruction.

The “more than fanciful possibility” is an extremely low and entirely subjective threshold for reporting and is combined with the threat of criminal prosecution for failing to submit a SAR when an MLRO had or reasonably should have had knowledge or suspicion that an individual is holding the proceeds of criminal or terrorist activity.  Understandably, this tends (anecdotally at least) to result in MLROs choosing to report.

Previously, reporting of such minor suspicions would be negated by the FIU carrying out their own investigation and making a determination as to whether the funds are in fact the proceeds of criminal activity. The Guidance shows that this appears to have changed under the Consent Regime.

The Consent Regime

When a SAR has been filed, if the Reporting Entity is asked to conceal, convert, transfer or remove funds, the MLRO must seek consent from the FIU before carrying out that act.

Whilst previously, a risk-based approach had been adopted when considering consent requests, the approach now taken is limited to the FIU granting consent only where there is an identified interest to law enforcement to do so.

Examples of an identified interest to law enforcement provided in the Guidance are:

  • To preserve the value of assets;
  • The payment of legitimate fees;
  • To protect undercover operations from discovery; and
  • To enable funds to be traced as part of an investigation.

This limitation leaves MLROs in a difficult position whereby they are required to report all suspicions but are unable to alleviate minor suspicions by asking the FIU to carry out an independent consideration. The result is an effective temporary freezing of funds through a refusal of consent that in no way reflects whether the funds are the proceeds of criminal conduct.

Under the Consent Regime, the FIU will either refuse consent or provide a letter confirming consent has been granted, providing a defence to a money laundering/ terrorist financing offence in carrying out the action.

What if Consent is refused?

If consent is refused, the MLRO has no statutory defence in proceeding to carry out the action that has been asked by their client and may face a charge of money laundering or terrorist financing should they do so.

Whilst a refusal of consent does not mean that the funds are the proceeds of criminal conduct, the threat of prosecution if they are wrong means that MLROs are unlikely to take the risk.

What if Consent is granted?

Whilst a letter of consent will provide protection from a money laundering/ terrorist financing offence, it does not imply FIU approval of the proposed action, confirm whether the funds are or are not the proceeds of criminal conduct or provide a defence against other criminal offences or regulatory breaches related to carrying out the action.

It does not, in effect mandate the carrying out of the activity. However, in practice, it would be difficult to justify a failure to carry out the activity once consent has been granted.

Tipping Off

It is an offence to inform a client or customer that a SAR has been or is going to be submitted.

This does not prevent the making of appropriate enquiries in an attempt to negate suspicion.

How can we help?

Robin Gist, Alison Antill and Charlotte Tomlinson regularly advise those impacted by the Consent Regime in Guernsey.

Should you have any queries or require further assistance please contact Robin, Alison, Charlotte or your usual contact at Ferbrache & Farrell.

Remember, remember the 5th of November, gunpowder, treason and plot…

Guy Fawkes was presumably monumentally annoyed with Parliament, choosing to try to take matters into his own hands.

With the Supreme Court in England & Wales clarifying last month the circumstances of public authority liability in respect of the police’s duty of care in negligence cases in Tindall v Thames Valley Police (23/10/2024) and the States of Guernsey finally, recently,  ensuring that police officers can be represented by the Law Officers of the Crown if they are sued, it seems the odds are stacked against a disaffected Guy of the 21st century.

However, Guernsey has embraced judicial review as a tool to challenge decisions of the Government, and it has been used to challenge everything from planning decisions (Groucutt, where I appeared for the States) to decisions affecting children with complex or additional need. Judicial review is even said to be available in the regulatory and anti-money laundering spheres, even though the Court cast some doubt on this as far back as 2012 (and questions must be cast as to the efficacy of that route over the usual so-called Liang type private actions).

In addition to challenge by JR, Guernsey also has the very odd spectre of the Administrative Review Board. As anachronistic in many ways as gunpowder in the tunnels by the Thames, the ARB allows a disaffected punter to challenge an administrative decision of the government (whether civil service or political board) without the need for recourse to court.  In addition to the ARB, various ombudsmen now have real powers to award monetary awards.

So if you, like the poem, can see no reasoning behind a decision made by the States, perhaps, before deciding to light up the sky, take stock and consider your options. There are ways to challenge decisions of the public authorities in Guernsey that ought not to end in an effigy being burnt in your honour every year and, while we may from time to time feel that a big old bonfire could be the answer to States paralysis, it is possible to seek redress through less drastic measures.

If you need further information or legal advice, please contact our dedicated dispute resolution team: Robin Gist, Alison Antill, Charlotte Tomlinson and Jana Valkovska, A. NALP, who will be delighted to assist.

Advocate Robin Gist has joined Ferbrache & Farrell’s dispute resolution team as Partner.

Robin has a wealth of knowledge and experience spanning private and public law sectors.

He came to Guernsey in 2012 to work for the Law Officers of the Crown and was called to the Guernsey Bar in 2014.

Managing Partner Alastair Hargreaves, said: “We’re delighted to have Robin as a Partner at Ferbrache & Farrell; his wealth of knowledge and experience will be a great asset to our growing client base.

“Robin brings an enviable mix of experience of both the private and public law spheres to his practice. He works with both international and local clients on a broad breadth of contentious issues, regulatory matter, general advisory work, and property.”

Robin sits on the Guernsey Tax and TRP Tribunals. He has extensive experience of appearing in all the Bailiwick’s courts, including the Court of Appeal.

Robin studied Chemistry at Imperial College, London and ETH, Zurich. He was called to the Bar of England & Wales in 2004 and practiced from Lamb Chambers in chancery and commercial law before coming to Guernsey. He spent three years at a multi-jurisdictional firm in Guernsey before joining Ferbrache & Farrell as Partner.

Guernsey has had protections against sex discrimination in employment since 2016, but the introduction of further protected grounds has been a long running political debate.

On 1 October 2023, new legislation for the prevention of discrimination came into force. This heralds a major change in the protection against discrimination in Guernsey. In addition, the legislation has made procedural changes for complaints to the Employment & Discrimination Tribunal (the Tribunal).

Which new grounds are protected?

The protected grounds in respect of discrimination have been extended to include:

  • Disability – where a person has one or more impairments that has lasted or is expected to last for at least six months or is expected to last until the end of the person’s life;
  • Race – skin colour, nationality, ethnic origins, national origins and descent;
  • Carer Status – a person has carer status if they provide care or support on a continuing, regular or frequent basis for a person with a disability, where the disability is of a nature that requires that kind of care or support on a continuing, regular or frequent basis and they live with or are a close relative of the person cared for;
  • Sexual Orientation – a person’s sexual orientation towards persons of the same sex, persons of a different sex or persons of both the same sex and persons of a different sex; and
  • Religion or Belief – any religion, religious or philosophical belief or lack of religion or belief.

Perhaps somewhat surprisingly, age is not yet a protected ground, but there is intention to review that position in future.

What does discrimination mean?

Discrimination can mean:

  • Direct discrimination – where a person treats another person less favourably than they treat or would treat others because of a protected ground;
  • Indirect discrimination – where a person applies a provision, criterion or practice that has a discriminatory effect on another person in relation to a protected ground. For example, when training courses are offered to all employees but are only accessible after 3:30pm. This could indirectly discriminate against female employees, who are statistically more likely to work part-time and may be unable to access these training courses to further their development outside their working hours;
  • Discrimination by association – where a person treats another person less favourably because of their association with another person with a protected ground;
  • Discrimination arising from disability – where a person treats a disabled person unfavourably (in a way which cannot be objectively justified) because of something arising in consequence of their disability;
  • Victimisation – where a person subjects another to a detriment because they have made a complaint related to discrimination, brought proceedings, or have supported another person’s complaint; and
  • Harassment – where a person engages in unwanted conduct (sexual or otherwise), which may or may not be in relation to a protected ground, with the purpose or effect of violating another person’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for that person. This includes where a person is treated less favourably because they rejected or submitted to that conduct.

Making reasonable adjustments

The new legislation introduces a duty on employers to make “reasonable adjustments” to remove or minimise difficulties that a disabled employee or job applicant may face in the workplace, where it is reasonable to do so.  This may include changing physical features in the workplace, taking steps to avoid any disadvantage from a particular practice or providing auxiliary aids.

Conduct at work

An employer must not discriminate against a job applicant or an employee in relation to work, regardless of their length of service. This prohibition includes

  • recruitment;
  • terms of employment;
  • access to opportunities for promotion;
  • dismissal; and
  • redundancy

An employer must also not victimise or harass an employee or an applicant who has applied for employment or work experience and should not request or require information about a protected ground from an employee or applicant in a discriminatory manner.

The protections do not just affect employers and there are also provisions relating to employment agencies, vocational training providers partnerships, personal and public office holders and professional bodies and professional and trade organisations.

Equal pay and equal treatment

Legal protection is now also given for equal pay and equal treatment in the workplace.

  • Equal pay – employees with a particular protected ground should be paid equally to those who are employed to do equal work but do not have that protected ground; and
  • Equal treatment – employees with a particular protected ground should be treated equally to employees who carry out work that is not materially different but do not have that protected ground.

Any terms of employment that do not include an equal pay or equal treatment clause will be treated as including one and any term of employment that attempts to prevent or restrict employees discussing their pay is unenforceable.

Pre-complaint conciliation

The procedure for bringing an employment complaint has also changed with the introduction of a Pre-Complaint Conciliation service before the stage of a formal complaint to the Tribunal.

Before a complaint is made, an employee must notify the Employment and Equal Opportunities Service (the EEOS) using an Intent to Complain form. The EEOS will then offer a service of Pre-Complaint Conciliation to settle potential complaints. This is a voluntary service and either party can refuse to take part.

If unsuccessful in settling the complaint, the EEOS will issue a certificate which will enable the employee, if they choose, to file a formal complaint against their employer by filing form ET1 that will be provided to the employee by the EEOS with the certificate.

Time to complain

The time limit for a complaint being presented to the Tribunal has been amended to three months from the date of the act complained of. This may be extended by permission from the Tribunal and this time limit does not include the period between the date of notification to the EEOS and the date of the certificate.

Increased maximum compensation

The maximum sum of compensation for employment complaints pertaining to discrimination has been increased to six months’ pay and a maximum of £10,000 for injury to feelings, hurt or distress.

The Tribunal can now join complaints against several people (e.g. an employer and individuals employed by them) where they relate to the same facts or circumstances. The maximum total award that can be made to a person in respect of joined complaints is nine months’ pay and £10,000 for injury to feelings, hurt or distress.

If you need any further information or legal advice, please contact our employment team Alison Antill, Charlotte Tomlinson and Robin Gist, who will be delighted to assist.

Charlotte Tomlinson has joined the team at Ferbrache & Farrell LLP as an Associate in the Dispute Resolution department.

After graduating with an LLB (Hons) from the University of Nottingham, Charlotte obtained the LLM Legal Practice Course at Nottingham Law School. She was then admitted as a Solicitor of the Senior Courts of England and Wales in October 2022.

Prior to qualification as a solicitor, Charlotte worked as a paralegal and trained and qualified as a solicitor with a full-service regional firm in Lincolnshire, specialising in wills, trusts and probate matters. During her training, Charlotte also gained experience in dispute resolution, property, and corporate law.

Managing Partner at Ferbrache & Farrell, Alastair Hargreaves, said: ‘We’re delighted to welcome Charlotte to the team at Ferbrache & Farrell. Having worked previously as a solicitor in a private client department she has a wide breadth of knowledge in a number of areas, which will be a real asset to the firm.’

Charlotte added: ‘I’m excited by the opportunity to work with a fantastic team and develop my career in Guernsey, where laws are much more steeped in history and customs than you find of laws within the UK. I’m also looking forward to working on matters within the varied and intellectually challenging areas of Guernsey law.’

Outside of work Charlotte enjoys walking her dog, reading, and exploring Guernsey.

Excellent client feedback has placed Ferbrache & Farrell in the Chambers & Partners rankings once again. The highly respected legal directory ranks law firms and their lawyers based purely on client feedback.

The firm’s Dispute Resolution department has achieved Band 3 recognition, with five of the firm’s lawyers ranked individually.

For the Corporate department, Counsel Helen McGeoch is highlighted in ‘Associates to Watch’, while founding partner Advocate Gavin Farrell has achieved top tier ranking for Corporate & Finance including Investment Funds.

Advocate Farrell was said to be ‘extremely responsive and commercially aware, which is a must for our most sophisticated clients.’

Clients said that Mrs McGeoch is a ‘very calm and astute lawyer’. This is the second year running that she has been recognised in ‘Associates to Watch’.

Advocate Alastair Hargreaves, who is also the firm’s managing partner and leads the Property and Private Client departments, is ranked Band 2 for property. Alastair was described as ‘super-responsive’ and ‘provides exceptional client service.’

Advocate Hargreaves said: ‘We’re absolutely delighted that that only seven years after our inception, the firm continues to grow, and more than holds its own against the larger and longer established law firms in Guernsey, as is demonstrated by such positive client feedback.’

Ferbrache & Farrell was established in 2016 and consists of highly respected individuals with decades of experience and who are all recognised locally and internationally for their levels of expertise in commercial law, property law, private client, UK real estate and dispute resolution.

Earlier this month the firm was recommended across all practice areas in The Legal 500 2024 UK rankings.

Today sees the release of the Legal 500 United Kingdom 2024 rankings. This is a very important publication in the legal world as it offers a myriad of useful information for potential clients, intermediaries, and referrers.

We are absolutely delighted that Ferbrache & Farrell LLP has again been recognised in all practice areas and had another great year of rankings, notwithstanding the firm has only been established for some 7 years.

Gavin Farrell is a ‘Hall of Fame’ lawyer, and Alastair Hargreaves is described as a ‘Leading Lawyer’ in commercial property.

Congratulations to Alison Antill for some superb client testimonials, and also to Stuart Nash who is described as a ‘Rising Star’.

In all of these accolades, however, the firm and partners know that it is the sum of all parts, and only due to the concerted team effort throughout the business.

Guernsey is set to introduce a new anti-discrimination law, namely the Prevention of Discrimination (Guernsey) Ordinance, 2022 (“the Ordinance”).

This long-awaited legislation will protect individuals from discrimination based on race, disability, carer status, sexual orientation, and religious belief.

The Ordinance aims to create a level playing field and ensure that no one is treated unfairly in Guernsey.

With a commencement date of 1st October 2023, businesses now have only limited time to prepare for the upcoming changes.

Expanding Protection and Encouraging Inclusion:

The Ordinance extends protection against discrimination beyond employment to various areas such as the provision of goods and services, education, clubs and associations and accommodation. By doing so, it aims to safeguard individuals from discriminatory practices in all aspects of life.

The inclusion of carer status as a protected ground also addresses a significant aspect of inequality, providing clearer guidelines for employers and enhancing the understanding of employees’ rights.

Balancing Employer Responsibilities:

While some businesses have expressed concerns about the potential burden on employers, it is important to note that the Ordinance aims to take a proportionate approach. It seeks to provide protection for employees while considering the practical and financial implications for employers. For instance, compensation for discrimination in the workplace will be capped at six months’ pay, along with additional compensation for injury to feelings, hurt or distress of up to £10,000.

Preparing for the Future:

With the Ordinance coming into force in October 2023, it is crucial for businesses to prepare accordingly. Employers should review their policies, conduct audits of employees’ pay and terms, and organise training sessions for employees.

Identifying the types of adjustments that may be required for disabled employees and assessing their impact on the company’s operations is also essential.

By taking proactive measures and seeking professional advice, businesses can ensure a smooth transition to the new legal framework and promote a fair and inclusive working environment.

Conclusion

Guernsey’s new discrimination law marks an important milestone in promoting fairness, equality, and inclusivity on the island.

Please contact Robin Gist or Alison Antill for any questions or assistance regarding the new legislation.