Licensees

Rules and Guidance

All entities licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 to conduct controlled investment business are required to comply with the following rules and guidance:

• The Licensees (Conduct of Business) Rules 2016
• 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
• Investor Protection (Designated Countries and Territories) (Amendment) (AIFMD) Regulations, 2015

Approach to Supervision;

The Investment Supervision and Policy 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, 2016 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.

Form 28A

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 Supervision and Policy 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, 2016 and the Licensees (Capital Adequacy) Rules 2010.

Extension of Licence

Where a Licensee wishes to extend the Categories of Investments and/or Restricted Activities for which it is licensed to conduct, an application form should be submitted. (Form RA/2, which may be found here).