Introduction
Purpose of the Consultation Paper
The Commission seeks to regulate and supervise financial services in the Bailiwick of Guernsey with integrity, proportionality, and professional excellence, and in so doing help to uphold the international reputation of the Bailiwick of Guernsey as a finance centre.
The purpose of this Consultation Paper is to seek feedback from all interested parties on the proposed replacement of the...More
Purpose of the Consultation Paper
Revision of Laws Project
In August and September 2020, the States of Guernsey, the States of Alderney, and the Chief Pleas of Sark, as part of a review of the legislation governing the finance industry, approved the following –
The Protection of Investors (Bailiwick of Guernsey) Law, 2020 (the “POI Law”);
The Banking Supervision (Bailiwick of Guernsey) Law, 2020...More
PART 1 INTRODUCTION
Purpose of the Consultation Paper
Revision of Laws Project
In August and September 2020, the States of Guernsey, the States of Alderney, and the Chief Pleas of Sark, as part of a review of the legislation governing the finance industry, approved the following –
The Protection of Investors (Bailiwick of Guernsey) Law, 2020 (the “POI Law”);
The...More
INTRODUCTION
Purpose of the Consultation Paper
Fees consultation
The aim of this consultation is to detail the Commission’s fee rate proposals for 2022 and to solicit feedback and comments from industry. The consultation will be open for an 7-week period. After this and following appropriate consideration of the consultation responses, new fees will come into force on the 1 st January 2022.
The Commission...More
Purpose of the Consultation Paper
Revision of Laws Project
In August and September 2020, the States of Guernsey, the States of Alderney, and the Chief Pleas of Sark, as part of a review of the legislation governing the finance industry, approved the following –
The Banking Supervision (Bailiwick of Guernsey) Law, 2020 (the “New Banking Law”);
The New Banking Law forms part of the suite of legislation contemplated...More
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...More
Background
Professional indemnity insurance (“PII”)
PII “covers liability for injury, damage or financial loss arising from a breach of professional duty carried out in good faith or negligent acts, errors or omissions in their professional capacity. The persons covered by the policy include the insured, any employees/partners, any agent and any predecessors” (Chartered Insurance Institute).
PII indemnifies firms in the...More
The Commission has been made aware by industry of an increasingly challenging Professional Indemnity Insurance (“PII”) market. Firms have found the availability of insurance reducing while prices are rising. The Commission has engaged with industry and other stakeholders through questionnaires and interviews. As a result of that engagement, the Commission is publishing this Consultation Paper to seek industry’s views on proposed changes to the rules around the maintenance of PII.
...More
Bailiwick Substantial Mind and Management
The Protection of Investors (Bailiwick of Guernsey) Law, 2020
The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020 (together “the Supervisory Laws”)
The purpose of this Consultation Paper is to seek feedback from all interested parties on proposals to issue guidance under the Supervisory Laws. The proposed guidance...More
Background
This consultation paper proposes the creation of new fund rules providing for the voluntary application for designation by the Commission of registered or authorised collective investment schemes as Natural Capital Funds. Designation would be available to funds committed to making a nature-positive investment, setting and monitoring appropriate targets, and making relevant disclosures. Nature-positive investments are those with an objective to...More
Introduction
Purpose of the Consultation Paper
The Commission seeks to regulate and supervise financial services in the Bailiwick of Guernsey with integrity, proportionality and professional excellence, and in so doing help to uphold the international reputation of the Bailiwick of Guernsey as a finance centre.
The term “greenwashing” refers to the practice of misrepresenting sustainability-related practices or the sustainability...More
Background
In our December 2021 Consultation Paper on Professional Indemnity Insurance we asked for feedback on the proposed changes to requirements concerning professional indemnity insurance (“PII”) for insurance managers and insurance intermediaries.
A feedback statement on the CP can be found at the link below. Alongside the feedback statement the Commission has issued final drafts of the relevant amended Rules wording, taking into account comments received during the...More
Background
In our December 2021 Consultation Paper on Professional Indemnity Insurance we asked for feedback on the proposed changes to requirements concerning professional indemnity insurance (“PII”) for the fiduciary and investment sectors, as set out in the Consultation Paper on Professional Indemnity Insurance Fiduciary and Investment Sectors (“CP”).
A feedback statement on the CP can be found at the link below. Alongside the feedback statement...More
The Guernsey Financial Services Commission (the “Commission”) is issuing this Consultation Paper on proposals for the fee rates and administrative penalties to apply from 1 January 2023, including:
an overall proposed increase in fees of 9%, to maintain the real value of our income considering current inflation rates,
proposals for application and annual fees in respect of our increased responsibilities for firms licensed under the Credit and Finance...More
This Consultation Paper (“CP”) follows the approval of the Lending Credit & Finance (Bailiwick of Guernsey) Law, 2022 , based on the Policy Letter published by the Policy & Resources Committee and Committee for Economic Development in December 2020 [1] , which builds on previous work. Since the Policy Letter’s approval, the Commission has engaged extensively with stakeholders in developing its approach to the new Law and in drafting Rules for licensees. We sought to...More
Introduction
This consultation paper proposes the making of new regulations providing for the exemption from licensing under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020 (the “Fiduciaries Law”) of the activity of acting as a director of certain companies connected to registered or authorised collective investment schemes. This consultation complements a recent Policy & Resources Committee...More
This consultation paper proposes the making of rules for the mandatory filing of three existing financial crime returns to which administrative financial penalties will apply for late filings and inaccurate submissions.
The Commission is intending to make rules which will make mandatory the filing of the following returns within the timeframes set:
The annual financial crime risk return from all licensed firms by 31 October each year;
...More
Purpose of the Consultation Paper
With a small life sector, the greater part of the insurance sector in Guernsey comprises retail and wholesale general (re) insurers. Whilst wholesale general (re) insurers (such as captives and Insurance-Linked Securities) make up the bulk of Guernsey (re) insurers, this paper is concerned with the smaller retail general sector. In the past, this sector has consisted of mainly domestic insurers with a small number of insurers writing...More
This consultation paper has been issued to seek comments on proposed amendments to Paragraphs 3 and 15 of Schedule 3 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 as amended (“Schedule 3 to the Law”) and associated rules and guidance in the Handbook on Countering Financial Crime and Terrorist Financing in relation to an independent audit function and on business risk assessments.
The consultation also includes further development...More
This consultation paper seeks comments on:
Proposed rules and guidance for virtual asset service providers (“VASPs”) on information requirements for virtual asset transfers and general guidance for VASPs and specified businesses with a connection to, or involvement with, virtual assets, on how to meet the requirements of Schedule 3 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999 (“the POC Law”) and rules in the Handbook on...More
Updated 23 November 2023
On 26 July 2023, the Commission issued a consultation paper on the fee rates and administrative penalties to apply from 1 January 2024, which contained the following proposals:
an overall proposed increase in fees of 7.3%, with the exception of fees introduced in 2023;
a rebalancing of fees within the insurance sector on request of the industry body with an aim to provide greater comparability with other jurisdictions;
...More