Introduction
The Financial Services Commission (Bailiwick of Guernsey) Law, 1987,
The Banking Supervision (Bailiwick of Guernsey) Law, 1994,
The Regulation of Fiduciaries, Administration Businesses and Company Directors etc (Bailiwick of Guernsey) Law, 2000,
The Insurance Business (Bailiwick of Guernsey) Law, 2002,
The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002,
The Protection of Investors (Bailiwick of Guernsey) Law, 1987,
The Prescribed Businesses (Bailiwick of Guernsey) Law, 2008,
The Criminal Justice (Proceeds of Crime)(Legal Professionals, Accountants and Estate Agents)(Bailiwick of Guernsey) Regulations, 2008,
The Financial Services Commission (Site Visits) (Bailiwick of Guernsey) Ordinance, 2008,
The Protection of Investors (Administration and Intervention) (Bailiwick of Guernsey) Ordinance, 2008, and
The Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008,
The Protection of Depositors, Companies and Prevention of Fraud (Bailiwick of Guernsey) Law, 1969,
The Road Traffic (Compulsory Third-Party Insurance) (Guernsey) Law, 1936,
The Road Traffic (Compulsory Third-Party Insurance) (Alderney) Law, 1950,
The Surf-Riding (Long Boards) (Compulsory Third-Party Insurance) (Guernsey) Law, 1969,
The Vessels and Speedboats (Compulsory Third-Party Insurance, Mooring Charges and Removal of Boats) (Guernsey) Law, 1972,
The Transfer of Funds (Guernsey) Ordinance, 2007,
The Transfer of Funds (Alderney) Ordinance, 2007,
The Transfer of Funds (Sark) Ordinance, 2007,
The Companies (Guernsey) Law, 2008,
The Companies (Alderney) Law, 1994,
The Foundations (Guernsey) Law, 2012,
The Limited Liability Partnerships (Guernsey) Law, 2013,
The Limited Partnerships (Guernsey) Law, 1995,
The Companies Securities (Insider Dealing) (Bailiwick of Guernsey) Law, 1996,
The Companies (Guernsey) Law, 2008,
The Companies (Alderney) Law, 1994,
The Road Traffic (Compulsory Third-Party Insurance) (Guernsey) Law, 1936,
The Road Traffic (Compulsory Third-Party Insurance) (Alderney) Law, 1950,
The Surf-Riding (Long Boards) (Compulsory Third-Party Insurance) (Guernsey) Law, 1969,
The Vessels and Speedboats (Compulsory Third-Party Insurance, Mooring Charges and Removal of Boats) (Guernsey) Law, 1972,
The Steam Boilers (Insurance) Ordinance, 1952,
The Insurance Business (Financial Guarantee Insurance: Special Provisions) (Guernsey) Law, 1996,
The Criminal Justice (Proceeds of Crime)(Bailiwick of Guernsey) Law, 1999,
The Criminal Justice (Proceeds of Crime) (Financial Services Businesses) (Bailiwick of Guernsey) Regulations, 2007,
The Disclosure (Bailiwick of Guernsey) Law, 2007,
The Criminal Justice (Fraud Investigation) (Bailiwick of Guernsey) Law, 1991,
The Terrorism and Crime (Bailiwick of Guernsey) Law, 2002,
The Drug Trafficking (Bailiwick of Guernsey) Law, 2000, and
The Transfer of Funds (Guernsey) Ordinance, 2007, the Transfer of Funds ; (Alderney) Ordinance, 2007 and the Transfer of Funds (Sark) Ordinance, 2007,
Commission's Approach To Enforcement
Enforcement Measures
1. WARNINGS & PRIVATE REPRIMANDS
2. LICENCE DIRECTIONS AND CONDITIONS
3. OBJECTION TO USE OF NAME / DIRECTIONS AND MISLEADING ADVERTISING
4. OBJECTION TO DIRECTORS / CONTROLLERS / SIGNIFICANT SHAREHOLDERS & REFUSAL TO APPROVE DIRECTORS / MANAGERS
5. PRODUCTION OF INFORMATION & DOCUMENTS, INTERVIEWS & APPOINTMENT OF INSPECTOR
6. CANCELLATION, REVOCATION & SUSPENSION
7. PUBLIC STATEMENT
8. DISQUALIFICATION ORDERS AGAINST AUDITORS AND ACTUARIES
9. PROHIBITION ORDER / DISQUALIFICATION ORDER
An individual be disqualified from acting as a director under the Companies (Guernsey) Law, 2008.
A person be prohibited from being a member of any Guernsey limited liability partnership or a specific Guernsey limited liability partnership.
A person be prohibited from being a foundation official of any foundation or any specified foundation or from participating in, or being in any way concerned in, directly or indirectly, the management, formation or promotion of any foundation or any specified foundation (although such an application would be with the leave of the Court).
10. DISCRETIONARY FINANCIAL PENALTY
The Commission may impose a discretionary financial penalty of up to a maximum of £4,000,000, for licensees and former licensees (other than personal fiduciary licensees) (increased from the previous maximum of £200,000), with any fine over £300,000 being limited to a maximum of 10% of the turnover of the licensee/former licensee in question, and further;
The maximum level of financial penalty available for relevant officers and personal fiduciary licensees is now £400,000 (up from the previous maximum of £200,000). When imposing these fines the Commission, must take into account the emoluments arising in respect of the relevant officer's or personal fiduciary licensee’s position.
The criteria to be considered in assessing whether to impose a discretionary financial penalty are listed in section 11D of the Financial Services Commission (Bailiwick of Guernsey) Law, 1987 and, in respect of prescribed businesses, under section 13 of the Prescribed Businesses (Bailiwick of Guernsey) Law, 2008, as amended.
Discretionary financial penalties are to be distinguished from administrative financial penalties. Administrative financial penalties automatically apply where a party has contravened a routine requirement such as the filing of annual accounts. The Commission does not have the discretion to vary or waive administrative financial penalties.
(These increased financial penalties came into force on 13 November 2017. They will only be applied in new enforcement cases which are commenced on or after13 November 2017 and where the alleged breaches also took place on or after that date).
11. WINDING UP, DISSOLVING AND ADMINISTRATION
The winding up or administration of a company under the Companies (Guernsey) Law, 2008, as amended, the Companies (Alderney) Law, 1994, as amended or a number of the Regulatory Laws. The refusal or revocation of a licence or registration is one of the grounds upon which the Commission may make an application to the Court for winding up of a company under a number of the Regulatory Laws.
The winding up or administration of a limited liability partnership under the Limited Liability Partnerships (Guernsey) Law, 2013.
The dissolution of a limited partnership under the Limited Partnerships (Guernsey) Law, 1995, as amended.
12. OTHER COURT ORDERS
restrain unlawful business, to prevent a party from engaging in conduct contrary to a Regulatory Law,
repay monies accepted or paid over in the course of carrying on an unauthorised or unlawful business, which can also include the appointment of a receiver in order to recover those amounts,
sell the shares of a controller or significant shareholder held in contravention of a Regulatory Law,
appoint an administrative manager to direct the affairs, business and property of a licensee for a prescribed period, and
direct that a company change its name, where the name may mislead the public as to its regulatory status.