The Commission is today issuing a formal consultation paper seeking feedback from the financial services industry on a number of proposals to amend the Bailiwick’s supervisory and regulatory laws. Its primary purpose is to facilitate discussion between the Commission, government and industry on the best way to update the current legislative framework ensuring that it is as user-friendly as possible, while still complying with the relevant international standards.
Director General, William Mason said “In November last year the Commission issued a discussion paper on proposals for updating and improving the Bailiwick’s existing regulatory laws for the financial services sector. Various formal and informal meetings were then held in order to garner views and suggestions for change from industry representatives and practitioners. The Commission is now issuing a formal consultation paper setting out proposals in more detail and seeking further comments and feedback from all interested parties.”
The key aims of this project are to:
- ensure compliance with relevant international standards thereby maintaining the Bailiwick’s international “licence to operate” as a respected international financial centre, regularly inspected by international organisations such as the IMF;
- make the laws easier to understand thereby also ensuring those outside the Bailiwick can readily determine how our laws work such that we continue to be regarded as a good domicile in which to transact business;
- provide for the possible requirements of the European Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR);
- create efficiencies for both the Commission and industry by enhancing clarity and removing inconsistencies.
General Counsel for the Commission, Philip Nicol-Gent, who is leading the project said “since the Assessment in 2010, by the International Monetary Fund, of the Bailiwick’s financial sector supervision and its legal framework, the international standards against which the Bailiwick was assessed have moved on. Many of these changes have been driven by the global financial crisis and an increased emphasis on consumer protection. As a result, the Bailiwick needs to consider further changes to its supervisory laws. Our implementation of international standards is regularly reviewed by the IMF and other international organisations.”
As part of the consultation process, the Commission will be using a web based system known as “Citizen Space” which many organisations have used to facilitate a more comprehensive approach to consultations. It will be available for use by everyone wishing to contribute to this consultation by following this link http://tinyurl.com/gfsc-revisionoflaws. Any questions can be emailed to [email protected].
Responses to this consultation paper are sought by Friday, 24 April 2015.