Appeal will prove to be a test case

It seemed that the original judgment against the GFSC in its enforcement proceedings against Artemis Trustees had the potential to transform regulation within the local industry. Industry players certainly hoped so.

The appeal, now going to be heard by senior off-island judges from the Guernsey Court of Appeal, raises the stakes still further.

The rationale put forward in this latest judgment is that hearing the appeal, and ruling on key points, is in the public interest. That is a strong argument. However, it turns the Artemis case into a genuine test case for the rest of the industry.

For if Artemis was to lose in the Court of Appeal, financial services regulation and its enforcement is unlikely to change, and one could reasonably never again expect anyone to challenge an enforcement action – indeed, every case heading to enforcement would probably be agreed in advance to take advantage of a 30% discount for an early settlement.

The wide-ranging comments in Lt Bailiff Hazel Marshall's initial judgment were an invitation to a refreshed and proportionate approach to regulation, and particularly to enforcement. An appeal court ruling might see that window close.