One of Guernsey FC’s co-founders has been banned by the island’s financial regulator from any involvement in regulated companies, following his involvement in a fraudulent investment fund that collapsed in 2016.

Former club chairman Steve Dewsnip, 57, who is now commercial director of Northern Premier League club Stalybridge Celtic, has been banned by the Guernsey Financial Services Commission (GFSC) for “failing to comply minimum criteria for obtaining a license.

The ban This means Mr Dewsnip will not be able to carry out any functions for regulated companies based in Guernsey such as investment funds, insurance companies or banks – but is not prevented from carrying out his current role.

Stalybridge, based in Greater Manchester, said it was aware of the matter and had “full confidence” in Mr Dewsnip, adding that it believed the ban had “no bearing on his ability” to do his job. Mr Dewsnip declined to comment after the BBC approached him.

Paul Bowden, the club’s finance and operations director, said: “In Steve’s six months at the club, he has played a vital role in overhauling our commercial offering, whilst bringing the experience and knowledge that was lacking at the club.”

The club said Mr Dewsnip, who is not on its board, had maintained “full transparency” and that the club had “financial procedures” in place to ensure its activities were protected.

A Guernsey FC spokesperson said Mr Dewsnip was “no longer affiliated” with the club and had “no involvement” since his resignation in 2016.

Mr. Dewsnip was fined £7,000 by GFSC in 2020 for failing to ensure effective control systems were implemented while he was a non-executive director of Global Insurance Group, which the commission said put policyholders’ claims and Guernsey’s reputation as a center at risk international financier.

He was previously a director of the Providence Investment Fund, a fraudulent investment fund which collapsed in 2016, leaving investors around the world millions of pounds out of pocket.

More than £37 million has been invested in the fund by people from Guernsey and Jersey alone, including some people’s savings.

Providence claimed to use investors’ money to repurchase debts from Brazilian companies, but at one point, 97% of that money did not reach Brazil, according to court documents, with the majority going to Providence Global Limited , a Guernsey company.

A GFSC spokesperson said it was “unable to comment further” on Mr Dewsnip’s ban.

In its notice of prohibition, the commission said it had decided “to prohibit Mr Stephen Paul Dewsnip from carrying out any function on behalf of a regulated entity”.

The sanction is “the result of non-compliance with the minimum criteria for obtaining a license”, he adds.