The Commission is today issuing a consultation paper seeking feedback on a number of regulatory proposals for firms involved in lending, credit and finance. The consultation period will close on Friday 15th September 2017.
The proposals contained within the consultation paper have a twofold purpose:-
A) Opening up Guernsey to more innovative, often digitally enabled, financial services which don’t neatly fit into the boxes marked banking, insurance, investment or fiduciary covered by current laws – enabling faster economic growth;
B) Protecting Guernsey consumers, particularly those who are less financially able, from unscrupulous lending practises.
In conjunction with the States of Guernsey, the Commission seeks to develop a stable and practical regulatory environment that enables the growth of electronically enabled financial services, further to the States ambitions to develop this sector of the Bailiwick’s economy. The consultation includes proposals relating to Peer to Peer and Crowdfunding Platforms; and identifies some enterprising innovative finance opportunities, such as Customer Due Diligence (CDD) Platforms and Green Investments.
Separately from its work to help Guernsey develop its international business, the Commission is aware that the Bailiwick has its fair share of poor and easily exploited residents, and is therefore proposing to introduce legislation that will enable the Commission to control lending practices to help defend vulnerable consumers from loan sharks and others employing dubious non transparent lending techniques which are currently almost entirely unregulated.
Fiduciary Supervision Policy & Innovations Director, Gillian Browning said “This consultation paper is an invitation to lending, credit and finance customers, firms and interested parties to continue working in conjunction with the Commission to build a regulatory regime which is proportionate, protects consumers, stimulates the economy and further enhances the reputation of Bailiwick as a respected financial centre.”
Citizens Advice Guernsey Manager, Kate Raleigh said "Citizens Advice Guernsey welcomes the proposal for greater protection for borrowers. All lending needs to be both easily understood and affordable"
A copy of the combined Consultation Paper can be found here:
Respondents are encouraged to submit their comments online using the Commissions Citizen Space Consultation Hub which can be found here: