The Financial Services Commission (FSC) and Caydion Campbell, the trustee overseeing Stocks and Securities Limited (SSL), have reached a compromise on the trustee’s report that will be shared with creditors and claimants during an upcoming meeting scheduled for October 25. This development follows months of legal back-and-forth over the report’s contents.
Caydion Campbell was tasked with preparing the report by Justice David Batts after regaining his position as trustee in May. The report, intended to provide insight into SSL’s current financial state, was originally submitted on September 25, just ahead of a public court hearing. However, the FSC, through its new legal representative Symone Mayhew, objected to the report in its initial form, expressing concerns about its alignment with regulations and the potential impact on trust in the financial system.
During nearly three hours of legal discussions, Mayhew and Campbell’s lawyer, Caroline Hay, were able to come to an agreement. Campbell was asked to revise the report to better adhere to the standards laid out in the Insolvency Act. The updated version of the report was to be filed on Tuesday, with a follow-up hearing set for Thursday to evaluate whether the FSC has any remaining objections.
Mayhew argued before the court that the original report, in its current format, could mislead creditors and damage the bankruptcy estate. She emphasized that the FSC’s concerns weren’t just about technicalities, but the broader implications of sending such a report to creditors. “It’s not just a matter of semantics, My Lord. This report, as it stands, could mislead creditors,” she stated.
The FSC also called for the initial trustee report to be sealed during a hearing on September 26, citing concerns that its release could undermine public confidence in the regulator. Mayhew highlighted various legal precedents and examined sections of the Companies Act and Insolvency Act to bolster her argument, contending that the trustee’s report extended beyond the scope intended by the law.
Caroline Hay, on the other hand, defended Campbell’s report, arguing that it complied with the relevant legal frameworks, particularly Section 233 of the Companies Act. She questioned the FSC’s demand for a second, revised report, pointing out the additional costs and delays this would incur.
Justice Batts acknowledged the complexity of the situation, referencing a notable case involving Bob Marley that eventually made its way to the Privy Council. He advised caution, urging the trustee to avoid taking sides in such matters. He also deferred a decision on Campbell’s application for management fees until after the creditors’ meeting.
The legal teams, including Mayhew representing the FSC and Hay representing Campbell, will return to court after the revised report is reviewed. An attorney from the Office of the Supervisor of Insolvency (OSI) was also present to observe the proceedings.
This case continues to unfold, as creditors and claimants await further clarity on the future of SSL and the role the trustee’s report will play in shaping the outcome.
