2022 Annual Report1st June 2023
The Commission has today published its 2022 annual report and financial statements.
In the annual report, the Commission discusses: the increased risks faced by the financial services sector as a result of high inflation and rising interest rates; its continued development of digital technology to enhance performance; its work with Guernsey Finance and others to develop the Bailiwick’s proposition in the fast growing sustainable finance sector and its support for the Bailiwick’s preparations for the impending MONEYVAL inspection.
Specifically, in 2022 the Commission:
- continued to develop its use of Augmented Intelligence with the creation of an Early Warning System which assists supervisors in recognising smaller entities that are displaying certain patterns of possible concern. It also made progress with a data project to review its overall data strategy and start creating a design framework for a new data platform that will transform its IT infrastructure. These are both large scale digital projects designed to increase automation and efficiency.
- launched its Natural Capital Fund framework designed as a regulatory designation for funds to help channel investment into biodiversity and natural capital projects that make a positive contribution and/or significantly reduce harm to the natural world. It also published anti-greenwashing guidance for the investment sector to ensure that adequate disclosures are made to investors in respect of any environmental sustainability claims made.
- implemented the recommendations from an audit it underwent against the Financial Action Task Force’s criteria whilst working with the States of Guernsey to deliver a number of significant new pieces of MONEYVAL-related legislation, including the Lending, Credit and Finance Law. This brings crypto assets and personal loans inside the regulatory perimeter for the first time, hopefully advancing good AMLCFT practises and consumer protection.
Talking about the report, the Commission’s Director General, William Mason said: “Whilst the Bailiwick’s International Financial Centre remained in good health in 2022, those in it, along with all other global capital providers, face a number of challenges as interest rate increases stop money being effectively free – slowing economic growth in an attempt to tame inflation. At the same time geopolitical and sustainability-related risks would appear to be increasing. We would urge all boards and managers to remain vigilant as the shape of this ‘new normal’ develops whilst at the same time not neglecting the AI developments which may change the shape of the financial services sector.”
Commission Chairman, Julian Winser, noted, “We continue to work to advance Guernsey’s reputation as a good place from which to undertake good quality global financial services business.”