Standard Bank Jersey and Standard Bank Fund Administration Jersey have been publicly criticised for their handling of the funds associated with the defunct Belgravia Asset Management. 

In a public statement, the Jersey Financial Services Commission has criticised several aspects of Standard’s services in relation to the Belgravia funds, including corporate governance, internal controls and procedures and the level of resources and staffing provided.

The JFSC says: “There was a failure to adequately understand the complexity of the structures underlying the Belgravia funds. As a result, the functionaries failed to identify all risks and implement an appropriate risk management process.”

Standard Bank Jersey and Standard Bank Fund Administration Jersey were custodian and administrator respectively of Belgravia European Property Funds, Belgravia Funds PCC, Belgravia IFN Funds PCC and Belgravia Property Funds.

The JFSC adds, however, that Standard Bank and Standard Bank Fund Administration have co-operated with the commission and are undertaking a remediation plan to address the findings of the JFSC’s review.

In response to the findings, Standard says it takes its obligations to clients extremely seriously and that the intricate and complex nature of the Belgravia funds resulted in the administration difficulties.

It adds: “The implementation of a detailed remediation plan commenced in February 2009.  The plan was presented to the Commission in May 2010 and has been agreed.  The functionaries believe that the completion of the plan will further strengthen the overall business of the Standard Bank Group and place it in a strong position to grow in Jersey.”

Established as a Jersey company in July 2004, Belgravia Asset Management acted as manager of several property funds investing predominantly in the UK and Europe and performed the role of general partner and investment manager to a fund investing in gold and resources-related companies.

The JFSC conducted an on-site examination of Belgravia Asset Management in January 2008 and the company was placed into liquidation by order of the Royal Court of Jersey in September, though it only ceased to provide services to some funds in 2010. Its licence has now been revoked.