The Finance Sector Code of Corporate Governance (“the Code”), issued in September 2011 with an effective date of 1 January 2012, stated the GFSC will require an assurance statement from companies confirming that the directors have considered the effectiveness of their corporate governance practices and are satisfied with their degree of compliance with the Principles set out in the Code, or the alternative codes accepted by the GFSC, in the context of the nature, scale and complexity of the business.
The Code continued that the GFSC would liaise with the finance sector on when and how the assurance statements should be provided. To that end a copy of the assurance statement to be completed by the companies covered by the Code can be found here. The assurance statement should cover the period commencing 1 January 2012 until the date of submission. Where possible the assurance statement should be submitted with the relevant Annual Return as required by the Fiduciary Services, Investment Business and Insurance Divisions or the S36C Annual Review as required by the Banking Division. Where this is not possible the assurance statement may be submitted separately but in either case it should be submitted by no later than 31 July 2012.
Only one assurance statement needs to be provided by a licensee. Where a licensee holds more than one licence the statement should be provided to the Division with which it has most contact. Insurers subject to the Licensed Insurers’ Corporate Governance Code (“the Insurers’ Code”) do not need to submit an assurance statement, however must continue to submit the summary of the extent of adherence to the corporate governance principles set out in the Insurers’ Code as required by The Insurance Business (Annual Return) Regulations, 2008.
It is intended going forward that the assurance statement will be incorporated into the respective Annual Returns required by each of the Fiduciary Services, Investment Business and Insurance Divisions and into the S36C Annual Review required by the Banking Division however, for the time being it is a standalone document. The Commission will provide further guidance on the submission for the next period during early Q4 2012.
Guidance on Submission:
Licensees - Submit the assurance statement with the Annual Return or separately but no later than 31 July 2012.
Funds – Submit the assurance statement with the Annual Report & Accounts or separately but no later than 31 July 2012.
Fiduciary Services Division:
Submit the assurance statement within the Annual Return or separately but no later than 31 July 2012.
Submit the assurance statement with the Annual Return or separately but no later than 31 July 2012.
Submit the assurance statement with the S36C Annual Review or separately but no later than 31 July 2012.
If you should have any queries please contact as appropriate:
Audrey Branch - Deputy Director – Banking Division
Fiona Crocker - Deputy Director – Fiduciary Services Division
David Richings - Assistant Director – Insurance Division
Emma Bailey - Deputy Director – Investment Business Division