News

Consultation on Code of Practice - Foundation Service Providers

18th December 2012

It is anticipated that the Foundations (Guernsey) Law, 2012 will come into force at the beginning of January 2013. With this in mind, The Guernsey Financial Services Commission (“Commission”) is proposing to create a Code of Practice for Foundation Service Providers to sit alongside the existing Code of Practice for Trust Service Providers and Code of Practice for Corporate Service Providers.

The Commission therefore invites comments on this consultation paper. Comments should reach the Commission by 25 January 2013.

Responses should either be emailed to Lyn Jordan, Secretary to the Director of Fiduciary Services, at [email protected] or be marked for her attention and sent to:

Guernsey Financial Services Commission
P.O. Box 128
Glategny Court
Glategny Esplanade
St. Peter Port
Guernsey
GY1 3HQ
Telephone: +44 (0) 1481 712706
Facsimile: +44 (0) 1481 733444
 

It should be noted that the new code relies upon proposed amendments being made to the Regulation of Fiduciaries, Administration Businesses and Company Director, etc (Bailiwick of Guernsey) Law, 2000, as amended (“the Fiduciaries Law”). There will be a new section 2(1)(d) extending regulated activities to include foundations business. The term “Foundation Official” will be defined.  At this stage, the proposed regulations required to effect the above change have not come into effect, but an extract of the proposed wording appears below:

 

 "(d) the formation, management or administration of foundations, and the provision of advice in relation to the formation, management or administration of foundations, including (without limitation) -

(i) acting as corporate or individual foundation official,

(ii) the provision to foundations of corporate or individual foundation officials.

 

"foundation official" means -

(A) in relation to a foundation created under the Foundations (Guernsey) Law, 2012, a foundation official within the meaning of that Law, and

(B) in relation to an equivalent or similar body created or established under the law of another jurisdiction, a person with functions corresponding to those of a foundation official described in item (A)."

There are also references within the new code which rely upon the proposed changes to the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing (“the Handbook”) where matters relating to Foundations will be included. At this stage, the proposed changes to the Handbook have not come into effect.