No FSC action over MEA scandal

The Financial Supervision Commission says it won’t be investigating any of the major players behind the loans scandal at the Manx Electricity Authority. 

A select committee of Tynwald which probed how the authority had taken out £120 million of loans without government consent had asked whether the FSC could launch its own probe. 

The commission has now responded to the committee, saying it doesn’t believe anyone could be investigated under the Financial Services Act as possibly being an unfit person to be a director, key person or controller of a licence holder. 

In a letter to the committee, the financial regulator says it won’t try to disqualify any of those involved from becoming company officers. 

In the letter, the commission says failings found by the committee are typical of those which could lead to disqualification from being a company director.

But it says those leading the MEA at the time were serving on a statutory board – not a company – and too much time has passed since the loans were taken out in 2004.

It also points out that only one of those involved is currently either in post or seeking appointment as a director of a regulated business.

And it concludes by saying taking all factors into account, the public interest wouldn’t be best served by any disqualification proceedings.