FSC assessing legal options after losing court battle to control SSL

The Financial Services Commission (FSC) says it is assessing its options, including possible legal avenues, after the Supreme Court ruled today at the regulator should hand over control of fraud-hit investment firm Stocks and Securities Limited (SSL) to a trustee that was appointed by the company.

Justice David Batts ruled this morning that the FSC's temporary management of SSL through Kenneth Tomlinson must cease with "immediate effect" and give control to the company to licensed trustee Caydion Campbell. 

The court has also permitted Campbell to pursue the winding up of SSL under a court-supervised process. 

Approval must also be sought from the court before any criminal case against the SSL can proceed.

The FSC lost the lawsuit it brought against Campbell who won his counter lawsuit to be declared trustee and permitted to pursue the winding up and reorganisation process. 

The FSC sued SSL and Campbell last year, claiming that Campbell's appointment was in breach of directives and an attempt to frustrate investigation of the multibillion-dollar fraud. 

The FSC, which regulates investment houses, has also argued that SSL's solvency declaration was flawed because it did not accurately represent the company's financial status and did not account for the fraud reported at the agency on January 10, 2023. 

SSL directors appointed Campbell as trustee on January 16, 2023 to pursue a re-organisation of the company through voluntary winding up under the Companies Act. 

The process of winding up SSL will continue with the trustee appointed by SSL in place for the purpose of the court-supervised wind up and reorganisation.

Reacting the today's development, the FSC says it will remain actively involved in this process ensuring that the winding-up process is conducted transparently and in the best interests of all stakeholders.

The court has also stayed all proceedings against SSL, providing a period of stability for the reorganisation efforts.

A follow-up court date is scheduled for September 26 where the trustee will present a detailed report and any additional applications will be considered.

FSC Executive Director Lieutenant Colonel Keron Burrell stated that the commission respects the court's decision, noting that it is currently reviewing the judgment and assessing the available options, including potential further applications to the court in furtherance of its mandate as regulator.

“The FSC will continue to work to safeguard the interests of SSL's clients and the broader financial system."

Burrell added that the commission continues its collaboration with law enforcement agencies to ensure that any, and all acts of impropriety at SSL are thoroughly investigated and the perpetrators held to account to the full extent of the law.  

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