The Guernsey Financial Services Commission has issued today two discussion papers seeking views from interested parties on proposals concerning rules to be made following the States of Deliberation’s approval of the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020 (the "2020 Fiduciaries Law") and the Protection of Investors (Bailiwick of Guernsey) Law, 2020 (the “2020 PoI Law”). Both laws form a part of the Commission’s Revision of Law (“RoL”) project.
The first Discussion Paper (“DP”) proposes making rules and guidance under the 2020 PoI Law for the notification to the Commission of certain activity which is ancillary to controlled investment business. At present such activity requires the granting of a discretionary exemption under the Fiduciary regime. The 2020 Fiduciaries Law introduces a new statutory exemption from licensing for such activity where this has been notified to the Commission under the PoI regime. The proposal will introduce a more streamlined approach with consideration of this investment-related activity under the more appropriate umbrella of the PoI regime.
The second DP provides for the making of rules around the re-categorisation of fiduciary licensees as primary and secondary licensees as provided for under RoL. This formalises an existing approach under the current regime where joint licensees are set up to support a lead licensee. Whilst the Commission previously had dialogues with fiduciary licensees and the industry body on this subject, the DP seeks to obtain views and feedback specifically on the proposed definition of “actively trading”.
A copy of both Discussion Papers can be found here: https://www.gfsc.gg/industry-sectors/fiduciary/legislation-and-guidance
Respondents are encouraged to submit their comments online using the Commission's Citizen Space Consultation Hub which can be found here:
Responses to the Discussion Papers are sought by 5 October 2020.