The Commission’s use of its enforcement powers is an important component in the delivery of its regulatory objectives of:
Maintaining financial stability in the regulated finance sector.
Managing risk to the financial system and maintaining market confidence.
Ensuring fair, efficient and transparent markets.
Protecting financial services’ customers.
Countering financial crime and the financing of terrorism.
In delivering these regulatory objectives, the Commission takes it as a matter of course that Guernsey’s reputation as a financial services centre will be maintained and enhanced. Enforcement in this context includes all the means available to the Commission to achieve compliance with the regulatory regimes for which it is responsible. Furthermore, by publication of enforcement outcomes the Commission can effectively raise awareness of regulatory standards, and demonstrate its commitment to regulatory supervision.
The Commission is committed to a fair, proportionate, consistent and responsive use of its enforcement powers, to achieve effective outcomes. Where appropriate, the Commission will address contraventions or misconduct by agreement with the person concerned through ordinary supervisory processes, and try to agree the implementation of a remedial action plan to restore that person to compliance as soon as possible. This may involve agreement to changes in corporate governance, management and internal controls, or agreement to discontinue some or all of the person’s operations or areas of activity, or agreement to amended or additional licence conditions framed to encourage or ensure compliance.
There will be a need for more assertive enforcement action by the Commission, involving the use of its statutory powers, including those listed on the Commission’s enforcement web page, or where action by agreement is not considered to be sufficient or appropriate, or where co-operation is lacking, or where the contravention or misconduct is of sufficient seriousness.
The Commission will work cooperatively with the financial services sector, which recognises that enforcement of the regulatory and supervisory regimes for which the Commission is responsible is expected by the international community.