Beijing, People's Republic of China: The Director General of the Guernsey Financial Services Commission (GFSC), William Mason, and the Director General of the China Insurance Regulatory Commission CIRC), Mr Jiang Bo, have today signed a Memorandum of Understanding (MoU). The signing ceremony was also attended by Guernsey's Deputy Chief Minister, Deputy Lyndon Trott and the CIRC Vice-Chairman, Mr Chen Wenhui.
The MoU sets out a statement of intent to establish a framework for mutual assistance and to facilitate the exchange of information between the authorities.
Speaking after the signing ceremony, Mr Mason said:
"I am delighted to have been able to sign this MoU which means that the GFSC now has MoUs with all of China's financial services regulators including the China Banking Regulatory Commission and the China Securities Regulatory Commission."
Mr Mason continued:
"China and its financial services firms have embarked on a policy of international expansion to better serve foreign clients and expatriate Chinese under the "one belt, one road" strategy. As Chinese financial services firms are expanding they are looking for high quality jurisdictions from which to conduct their international business and the signing of this MoU is symbolic of the openness of Guernsey's insurance sector to Chinese-led business."
Guernsey is known for its extensive specialist insurance expertise which has been developed over many years and includes captive insurance which has enabled numerous corporate entities to better control their insurance costs. Guernsey also has significant expertise in insurance linked securities and reinsurance as well as specialist forms of general insurance such as kidnap and ransom. More than 800 insurance entities are now based in Guernsey having been attracted by the island's outstanding political and legal stability and its proportionate and high-quality system of risk based prudential regulation which meets current international standards set by the International Association of Insurance Supervisors (IAIS).
Notably, Guernsey does not expect to be adversely affected by 'Brexit' as it is a long standing non-EU jurisdiction which is acknowledged by the EU to be have an equivalent approach in a number of areas enabling easier trade with EU residents and corporates in respect of certain financial services than would otherwise be possible.
In concluding his remarks, Mr Mason said:
"In recent years the GFSC's insurance team has enjoyed working with its CIRC counterparts in the IAIS Executive Committee and Financial Stability and Technical Committee (FSTC) to further our common aim of ensuring sensible and pragmatic international standards for insurance which facilitate trade growth based on increased mutual understanding between regulators. We will continue to work together on matters of shared interest such as the IAIS project to develop an International Capital Standard for insurance groups."