Hill Robinson Limited

STATEMENT ISSUED BY THE ISLE OF MAN FINANCIAL SERVICES AUTHORITY (“THE AUTHORITY”) UNDER SECTION 30 OF THE FINANCIAL SERVICES ACT 2008 (“FSA 08”) IN RESPECT OF HILL ROBINSON LIMITED (“HRL”) AND ITS NON-COMPLIANCE WITH SECTION 20(3) OF THE BENEFICIAL OWNERSHIP ACT 2017 (“THE ACT”).

Terms used within this statement but not otherwise defined herein shall have the meaning ascribed to the same within the Act.

 

  1. Introduction
    • Section 20(3) of the Act states that the nominated officer must submit the information specified in section 20(5) of the Act to the Department. Such information includes, but is not limited to, certain details in respect of any registrable beneficial owner. A nominated officer who fails to comply with section 20(3) of the Act commits an offence (section 20(8)(a) of the Act).
    • The Authority is responsible for the oversight of compliance with the requirements of the Act by, among others, nominated officers, and has powers to issue civil penalties for offences committed (in lieu of the commencement of criminal proceedings). The Beneficial Ownership (Civil Penalty) Regulations 2022 ascribe a value of £5000 for each offence committed by a nominated office in respect of section 20(3) of the Act.

 

  1. Action
    • The Authority makes this statement and publishes the information contained herein in accordance with the powers conferred upon it under section 30 of the FSA 08.
    • The making of such statement and the publication of the information contained herein is entirely appropriate in respect of enabling and assisting the Authority to discharge its functions under both the Act and the FSA 08. Furthermore, the Authority has determined that the publication of this statement is desirable in the public interest. In particular, the Authority intends, through such publication, to enhance and to assist the understanding of those persons who bear the responsibilities of a ‘relevant person’ under the Act.
    • The Authority conducted an inspection of HRL (in its capacity as a nominated officer) on 26th July 2023.
    • The Authority has determined that, whilst acknowledging that HRL had (in its capacity as a nominated officer) successfully identified an individual as the ultimate beneficial owner of six companies, HRL had failed to submit the requisite information (the ‘required details’) to the Department in respect of such individual for each of the six companies (as required pursuant to section 20(3) of the Act).
    • As a consequence of the foregoing, HRL had committed six separate offences in accordance with section 20(8)(a) of the Act.
    • The Authority makes this statement to highlight to nominated officers their obligations under the Act (in particular those pursuant to section 20(3) of the Act).

 

  1. Learning points for relevant persons
    • Any person who assumes the role of a nominated officer must: (i) be aware of their obligations under the Act; (ii) understand the criteria that would result in a ‘beneficial owner’ being a ‘registrable beneficial owner’; and (iii) ensure that they adequately satisfy all of the requirements of the Act.
    • Under section 9 of the Act, it is the duty of the legal owner of the entity to ascertain who each of the beneficial owners are (whether registerable or not), and when asked, to provide the nominated officer with the required details (particularised by section 11) for these beneficial owners (whether registerable or not). The details provided must be accompanied by information from a reliable and independent source which verifies those details (particularised by section 9(6)).
    • In accordance with section 20(1), a nominated officer must take all reasonable steps necessary to ascertain whether a legal entity to which the Act applies has a ‘registrable beneficial owner’ so as to enable compliance with section 20(3) of the Act.
    • If a nominated officer is unsure of its obligations under the Act, it should seek legal advice in respect of such matters and have regard to the relevant published guidance of the Authority.
    • The definitions of ‘beneficial owner’ and ‘beneficial ownership’ contained in the Act are intentionally broad and relevant persons ought to have regard to the same when making any relevant determinations.