A memorandum of understanding between the Guernsey Financial Services Commission and the Guernsey Banking Deposit Compensation Scheme has been agreed between the Board of the Scheme and the Commission.
The memorandum was signed by the Director General of the Commission, Nik van Leuven, and the Chairman of the Board of the Compensation Scheme, Charles Tracy. It provides for the exchange of information about their banks and depositors between the two organisations and sets out a framework for the exchange of information relating to depositors and banks licensed by the Commission to take deposits in the Bailiwick, who are all required to participate in the scheme.
The memorandum establishes a formal basis for co-operation in order that the parties’ respective duties can be performed effectively in compliance with the Financial Services Commission (Bailiwick of Guernsey) Law 1987, the Banking Supervision (Bailiwick of Guernsey) Law 1994 and the Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance 2008.
Mr van Leuven, the Director General of the Commission, said: “This development reflects the fact that, while each party is operationally independent and has distinct functions, we both need to co-operate and communicate constructively with each other in order to carry out our respective functions effectively.”
Mr Tracy said: “The MOU is an important step towards formalising the co-operation between the Board of the Scheme and the Commission in relation to our legal obligations.”