Specific Discretionary Exemptions1st October 2019
Section 3(1)(y) of The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000
After due consideration, the Commission will be amending our approach to specific discretionary exemptions (an “exemption”) in two ways:
1) To clarify the extent of an exemption.
An exemption will only apply to the specific regulated activity in relation to the target asset, as disclosed in the exemption application. If there are any material changes to the structure, a new application form and fee must be submitted to the Commission. A ‘material change’ will be viewed as any change in activity or parties within the structure, except for those detailed below.
For clarification, if there is to be a change to administrator of the exempted entity, then, in line with the condition imposed on the exemption when granted, the Commission will need to be notified of the identity of the new administrator. The addition of connected parties for whom the exempted entity will be acting, will also require notification to the Commission (for example, where a general partner will be acting for another limited partnership connected to the original limited partnership). Neither circumstance requires a fee to be paid and both should be sent to [email protected]
2) To apply a 3-year time limit to an exemption.
An exemption will expire 3 years from the date the exemption is granted, if it has not been revoked beforehand.
Where there has been no change to the structure detailed within the original application a written renewal request, confirming the structure and parties associated with the exemption, must be submitted to [email protected] by no later than one month before the expiry date. A fee will not be required in this circumstance. Subject to a satisfactory review of the renewal request, a renewal letter will be reissued for a further 3 years.
If the renewal date is taken as an opportunity to amend the activities or individuals involved in the structure or there has been a material change without following the required process above, a new application form and fee should be submitted to [email protected] by no later than one month before the expiry date.
Please note that the 3-year time limit applies from 1 October 2019. No action is required in respect of existing exemptions.