Castle Trust and Management Services Ltd- The Big Problem for the Gibraltar Financial Services Commission

The collapse of Castle Trust and Management Services Ltd (CTMS) has raised serious questions about
the role and effectiveness of the Gibraltar Financial Services Commission (GFSC) and the Gibraltar
Government. The silence from these entities, in the wake of CTMS’s downfall, is becoming
increasingly hard to ignore as more victims step forward, revealing the extent of their losses.

The deception perpetrated by CTMS has left a trail of financial ruin. Many individuals have lost their
pensions and investments, with the total estimated losses exceeding £200 million. Among the most
significant losses are those suffered by the High Street Grp Loan Note holders, who collectively lost
around £123 million through notes secured by CTMS.

One pressing question stands out: How was such a large-scale deception possible under the nose of
a regulatory body? The focus now turns to the facilitators behind this scandal. The spotlight is firmly
on the Gibraltar Financial Services Commission (GFSC), which approved and regulated Castle Trust
and Management Services Ltd (CTMS) under the Financial Services Act 2019 until it revoked the
company’s permissions on April 9, 2024.

Insolvency & Law has posed several questions to the GFSC, seeking clarity on the following:

– The identity and adequacy of CTMS’s Professional Indemnity insurer.
-The GFSC’s awareness of Steven Knight’s history and his associates.
– The rationale behind allowing CTMS to operate given Knight’s past.
– The number of complaints received against Steven Knight and CTMS since 2010, and the lack
of action taken in response.

To date, the GFSC’s responses have been minimal, leaving many questions unanswered.

The Official Statement and Its Implications

On April 17, 2024, the GFSC issued a statement regarding CTMS and its associated companies. It
confirmed the cancellation of CTMS’s permissions to conduct regulated activities, a move intended
to alert the public that these entities are no longer under GFSC supervision. This statement implicitly
acknowledges that CTMS was indeed supervised and approved by the GFSC prior to the cancellation,
raising concerns about the effectiveness of this oversight.

On 23rd May 2024 the Gibraltar FSC responded with this:

“Information held by the Gibraltar Financial Services Commission is subject to confidentiality
requirements under Part 5 of the Financial Services Act 2019. Information that identifies a person
and is obtained by the GFSC within the course of carrying out its functions cannot be disclosed
except where certain criteria are met. …..We are not aware that any of the criteria for sharing
information under Part 5 of the Financial Services Act 2019 have been satisfied. Consequently, the
GFSC is unable to share the requested information with you at this time”.

An Embarrassment for Gibraltar

As the liquidation process and investigations into CTMS progress, the situation threatens to become
a significant embarrassment for Gibraltar, a nation that heavily relies on international investments.
The apparent failure of the GFSC and the Gibraltar Government to act proactively in the interests of
victims suggests systemic issues. The lack of communication and transparency fuels suspicions of a
potential cover-up.

A Bankruptcy Petition Against Steven Knight

Adding another layer to this complex scenario, a bankruptcy petition has been filed against Steven
Knight by Preston Turnbull LLP, a prominent London law firm. The outcome of the court hearing on
April 26, 2024, remains unknown, but a bankruptcy declaration could provide crucial insights into
Knight’s financial dealings and potentially offer some answers to those he owes money.

The Road Ahead

Insolvency & Law remains dedicated to uncovering the full extent of the Castle Trust and
Management Services Ltd debacle and the roles played by the Gibraltar Financial Services
Commission and the Gibraltar Government. A Freedom of Information Request is being prepared to
demand answers and accountability.

The unfolding CTMS scandal serves as a stark reminder of the importance of regulatory oversight
and the need for transparency in financial services. The victims of this collapse deserve answers, and
the entities responsible for oversight must be held accountable.

If you have been affected by the downfall of CTMS, your story matters. Please get in touch with us to
join the collective effort in seeking justice and uncovering the truth. E-mail us now at
investigations@insolvencyandlaw.co.uk.

if you want to find out more about the GFSC, or to find out if the Gibraltar Financial Services Commission will compensate your loss due to the failure of CTMS, e-mail Neil Perrera at nperera@fsc.gi.