Sovereign Trust (Guernsey) was sued for more than $25m. in its role as trustee of the Aircrew Protection International Trust.<\/p>\n
The action was taken by a group of 25 pilots who had at one time been based in Dubai, where the scheme started, and AIPT was set up to provide disability benefits for pilots who were unable to fly due to losing their class 1 medical certificate.<\/p>\n
Unusually, the Employment & Social Security Committee yesterday issued a statement in relation to the case, saying it was closely considering the outcome of the hearing and any implications that it might have. It said it was determined to ensure that all YIP pensions were secure.<\/p>\n
\u2018The committee has been made aware of the court action, which is now nearing its conclusion \u2013 and while it would be inappropriate to comment on any implications at this stage, I can confirm we will be considering the final judgment in detail,\u2019 said ESS president Tina Bury.<\/p>\n
A two-week hearing in front of three jurats was held in the Ordinary Division of the Royal Court last October and a summary of their decision was read in court last month by Judge Fionnuala Connolly.<\/p>\n
The full judgment in the pilots\u2019 case is pending, and no decision has been made at this stage in relation to compensation.<\/p>\n
As well as breach of duty, gross negligence and wilful neglect, Sovereign was accused of failing to act as \u2018en bon pere de famille\u2019 \u2013 a fiduciary standard under Guernsey trust law that requires trustees to manage assets with prudence and care. <\/p>\n
\u2018This is a huge victory for us,\u2019 said David Gaughan, one of the plaintiffs.<\/p>\n
\u2018Sovereign Trust (Guernsey) has not only been found liable by unanimous verdict of gross negligence but also of their wilful deliberate misconduct towards their own very vulnerable clients \u2013 the very people they were meant to be protecting.<\/p>\n
\u2018It has taken five years for us to see justice, and the toll on us, and on our families, has been significant.\u2019<\/p>\n
Given that the case has not yet formally concluded, a Sovereign Trust spokesman said the company did not feel it appropriate to comment. The trustee does not hold any assets or funds directly. <\/p>\n
\u2018Sovereign wishes to reassure clients and intermediaries that this will not have any direct impact on other areas of its business, including its management of Your Island Pension,\u2019 he said.<\/p>\n
Your Island Pension launched in 2024 and now all employed islanders must be given an opportunity to be part of it or an equivalent scheme, paying 1.5% of salary. It is unknown exactly how many employees are registered in the scheme.<\/p>\n
The Aircrew Protection International Trust started as a loss of income protection scheme in Dubai in 2015 and was formalised as the API Trust in Guernsey in April of that year.<\/p>\n
This restructuring reportedly saw Sovereign Trust (Guernsey) inherit more than $4.9m. and take over responsibility for the scheme\u2019s 1,800 members. Following an actuarial report in May 2015, the fund was found to be 72% funded and it was recommended to the trustee that higher contributions be made in order to achieve full funding by 2020.<\/p>\n
The pilots claimed that this advice was ignored, and that they were repeatedly told that the trust was financially sound.<\/p>\n
Four years later, Sovereign reportedly admitted that there were difficulties and, as well as stopping contributions to the trust, it was claimed that it sold the ordinary membership to a Lloyds-insured fund. <\/p>\n
The plaintiffs said that this cut off premium income and fatally weakened the trust\u2019s abilities to pay claims.<\/p>\n
All disability payments were stopped in February 2020, which the 25 pilots said left them and their families without the support they had been paying for over several years. <\/p>\n
In the time it took for the matter to come to court, three of the original claimants have died.<\/p>\n","protected":false},"excerpt":{"rendered":"Sovereign Trust (Guernsey) was sued for more than $25m. in its role as trustee of the Aircrew Protection…\n","protected":false},"author":2,"featured_media":518069,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-518068","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/518068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=518068"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/518068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/518069"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=518068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=518068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=518068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}