The high court has clarified the powers of a receiver appointed to an island-based trust services firm.

Gordon Wilson was appointed receiver and manager to Montpelier (Trust and Corporate) Services Ltd in a court hearing last month.

The Deemster also appointed an inspector to investigate the company’s affairs.

Regulator the Financial Services Authority had applied for the appointments in the public interest, alleging that millions of pounds of client money were paid to companies beneficially owned by Montpelier’s managing director Edward Watkin Gittins.

Montpelier has appealed the decision to appoint a receiver, manager and inspector on the basis that its business is being sold.

Following a disagreement that arose with the company’s directors, Mr Wilson applied to the high court for clarification on the date of his appointment and the extent of his powers.

Deemster Mohammed Khamisa QC’s judgment was dated October 2 but the directors claimed the effective date of Mr Wilson’s appointment was October 7, when the order was handed down and sealed.

Mr Wilson said the order authorises and permits him to access, secure and copy documentation which is in Montpelier’s possession, custody or control. These include the company’s computer servers.

But the directors contended that Mr Wilson is not entitled to access, secure and copy the computer servers as they contain information relating to other individuals and which does not relate to the company’s regulated business.

They said they had entered into an agreement on October 4 to sell the business to Hillberry Trust Company Ltd, before the order of October 7 was handed down.

But in a new judgment, Deemster Khamisa ruled the effective date of appointment is October 2 as specifically referred to in his substantive judgment.

He confirmed that the scope of the order authorises and permits Mr Wilson to access, secure and copy documentation which is held by Montpelier and/or which is in its possession, custody or control. These include the computer servers.

The Deemster noted: ’Mr Wilson expresses concern that the various points raised by the directors are "attempts to delay and frustrate his work".

’I do not express any judgement on that aspect but I expect a manager, receiver and inspector appointed pursuant to the court’s orders to have full access to material which they, in their judgement, consider necessary, appropriate and reasonable to discharge their statutory duties.’

Montpelier, registered at Palace Road, Douglas, continues to be licensed to conduct corporate and trust services.