Consultation Paper on Proposals to Create a Single Fiduciary Handbook

Closes 7 Nov 2019

Opened 12 Sep 2019

Overview

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.

Consistent with the Commission’s objectives, the proposals in this Consultation Paper are designed to enhance the levels of confidence and security in the Bailiwick’s regulatory and supervisory framework for fiduciary services.

The purpose of this Consultation Paper is to seek feedback from all interested parties on detailed proposals for potential modernising of the regulatory framework under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000 (the “Fiduciaries Law”) with the objective of ensuring that the regime continues to be both compliant with international standards and appropriate for the Guernsey market.

The publication of this Consultation Paper follows the Commission’s review and consideration of feedback received on the Discussion Paper issued in March 2019. A high level summary of this feedback is provided in Part 1 of this paper and additional discussion on specific elements is provided in Part 2.

The detailed proposals are set out in a draft Fiduciary Handbook comprising both Rules and Guidance. The draft Fiduciary Handbook is provided in the Appendix to this paper.

This Consultation Paper is a working document and does not prejudge any final decision to be made by the Commission.


 

Why We Are Consulting

Background to the proposals

Fiduciaries

In its March Discussion Paper the Commission proposed a refresh of the policy framework underlying the Fiduciaries Law, primarily in the area of business conduct to ensure compliance with international standards and introduce simplification and consolidation with the creation of a single Fiduciary Handbook (the “Fiduciary Handbook”). The Discussion Paper also highlighted proposals for further enhancements to the underlying policy framework including new provisions for client money, outsourcing, communication to clients (including advertisement) and terms of business.

At present licensed fiduciaries are subject to relevant Codes of Practice (Codes of Practice for Corporate Service Providers (CSP), Trust Service Providers (TSP), Foundation Service Providers (FSP) and Company Directors together, “the Codes”), the Regulation of Fiduciaries (Accounts) Rules, 2001 (“the Account Rules”), and, for full fiduciary licensees only, the Financial Resources Requirements Rules, 2018 (“the FRR Rules”). It is proposed that these rules and Codes will be repealed and the current provisions reframed and strengthened under a single Fiduciary Handbook. New provisions relating to international standards will also form part of this new Handbook. This approach provides for consolidation of 6 pieces of legislation into one. 

It should be noted that the introduction of the Fiduciary Handbook, which applies only to fiduciary licensees, will not vary the requirement for all licensees to comply with the Handbook on Countering Financial Crime and Terrorist Financing.

Review of Pension Licensees (Conduct of Business) & Domestic and International Pension Scheme and Gratuity Scheme Rules (No.2) 2017 (the "Pension Rules")

The March Discussion Paper provided feedback on industry comments on the Pension Rules and proposed the consolidation of the conduct of business-related elements of the current Pension Rules into the new single Fiduciary Handbook with the publication of separate, revised Pension Rules covering pension specific requirements. This Consultation Paper is therefore relevant to all licensed Fiduciaries, including pension providers. It should be noted that a separate consultation on proposals in respect of revised Pension Rules is taking place concurrently with this consultation and licensed pension providers and other interested parties should consider these separate proposals in addition to the proposals in this Consultation Paper.


 

Give Us Your Views

Audiences

  • Financial Services Business