Credit and Finance Survey

Overview

Objectives

As you may already be aware, earlier this year the States of Guernsey approved the creation of credit and finance legislation in the Bailiwick.  This will, amongst other things, regulate the market for credit and lending, providing protection for consumers, and ensure that Guernsey meets its international AML/CFT obligations. 

The new law will require firms which, by way of business, provide credit, lending or finance, or act as finance brokers, to be licensed by the Guernsey Financial Services Commission.

In general, high street retailers should not be affected, unless they offer their own finance arrangements, or offer a range of finance options.  For most, who offer credit through an established lender, the Commission will be proposing that it will be sufficient to have an agreement in place which would make them a representative of the lender (which would ensure that the lender would be responsible for meeting the relevant requirements under the new law). 

To help the Commission gain a better understanding of the business currently being undertaken within the Bailiwick and assist in guiding the Commission's proposed supervisory approach, the Commission is carrying out a survey of firms likely to be impacted by the new legislation. This includes businesses which are already licensed by, or registered with, the Commission, as well as those falling outside the current supervisory framework.

As well as gauging the readiness of firms for licensing, a key objective of this survey is to assist the Commission in developing a proportionate approach to supervision under the new law, including the proposed introduction of rules and guidance. These will be issued for consultation as part of the implementation process.  We anticipate that the consultation paper on the proposed rules and guidance will be issued next Spring, with these requirements going live approximately 12 months later.     

To have the best possible understanding, the Commission would be grateful for as many responses to the survey as possible from businesses that are not currently within its supervisory framework and thanks you for your commitment in contributing to this survey.

The survey is divided into four sections depending on the type of business carried out and it may be that more than one section applies:

Section A - businesses that lend or provide consumer credit,

Section B - businesses offering intermediary or broking services,

Section C - businesses offering debt administration services; and

Section D - businesses offering alternative forms of financing or services relating to digital assets, for example, peer to peer lending, crowdfunding, and services related to crypto currencies and virtual assets.  

This is explained in more detail as you work through the survey, however we are only asking you to answer those questions which are relevant to your particular business.

Guidance on completing this survey

The survey contains a comprehensive question set covering businesses proposed to fall under the new legislation. Consequently, many of the questions will not apply to your firm and can be skipped by selecting "No".

Please complete all questions that are relevant to the business undertaken by your firm. Where questions ask for a numeric response, please provide a reasonable estimate if precise details are not readily available.

Meet the Commission

If you would like to learn more before you complete the survey, the Commission will be holding three meetings, which we encourage businesses to attend and ask questions of the Commission:

Wednesday 10 November at 8.30am for garages and motor traders providing vehicle finance;

Thursday 11 November at 8.30am for lenders and home finance providers; and

Thursday 11 November at 10.30am for brokers, intermediaries, and retailers who offer their own finance arrangements or offer a range of finance options. 

If you would like to attend one of these meetings, please email conduct@gfsc.gg to reserve a place.

Queries

Should you have any queries on the information to be provided, please do not hesitate to contact Kathryn Bowley by email on conduct@gfsc.gg.

Submission

Please submit the completed survey by the close of business on 24 November 2021.

Important Note - If you are already licensed by or registered with the Commission for other business activities, and you think you may fall under the licensing requirements of the new legislation, however have not already received an email regarding this survey, please email Kathryn Bowley on conduct@gfsc.gg before completing this survey.  The survey will instead be added to your Online Portal timeline for completion.