On-going Supervision of Licensees
Rules and Guidance
The Licensees (Conduct of Business) Rules 2009
Guidance note to the Licensees (Conduct of Business) Rules 2009
Feedback statement to the Licensees (Conduct of Business) Rules 2009
The Licensees (Capital Adequacy) Rules 2010
Feedback statement to the Licensees (Capital Adequacy) Rules 2010
The Licensees (Conduct of Business and Notification) (Non-Guernsey-Schemes) Rules 1994
Where relevant the following rules and guidance should be complied with:
Outsourcing of functions by entities licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 1987
Principles of Conduct of Derivative Business
Guidance Note - Promotion of Investment
Promotional Activities Policy Guidance
Investment Exchange Rules 1998
Designated Territories Regulations 1989
Designated Territories Regulations 1992
Approach to Supervision
The Investment Business Division supervises its licensees by conducting regular desk based off-site monitoring supplemented by periodic on-site compliance visits.
Desk Based Monitoring
Licensees are required to comply with the Licensees (Conduct of Business) Rules, 2009 and the notifications stipulated therein. In addition Licensees are required to comply with the Licensees (Capital Adequacy) Rules 2010.
Some of the more common changes requiring notification are listed below:
Notifications under the Law
Under sections 27C and 28A of the Law the written no objection of the Commission is required before a person shall become a director or controller of a licensee which is a company or a partner in a licensee which is a partnership
Change of Name or Address
A licensee must notify the Commission of a change of its registered or equivalent name and of a change to its registered address or principal place of business.
Key employees
A licensee must notify the Commission of any changes to managers involved with the licensee's controlled investment business in Guernsey, the secretary of the licensee, the Compliance Officer and should include a statement for the reasons for the change.
Complaints
If a significant complaint remains unsettled for longer than three months, the licensee shall immediately inform the Commission and shall also advise the complainant that he may inform the Commission directly of his complaint.
Annual Compliance Return
All licensees must file annually with the Commission its compliance return. Please refer to the Returns section for further information in respect of the annual compliance return requirements.
Compliance Visits
The Investment Business Division performs regular visits to its licensees to enhance the Division's understanding of the licensee's business and to review the risk management systems and internal controls in operation to ensure compliance with the Licensees (Conduct of Business) Rules, 2009 and the Licensees (Capital Adequacy) Rules 2010.