Consultation Paper on The Lending, Credit & Finance Rules, Guidance and Implementation21st July 2022
The Commission has today published a Consultation Paper setting out the Commission’s Rules and approach for regulating the sectors covered by The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022, and is seeking feedback on its proposed Rules and approach.
The purpose of the new Law, which was passed by the States of Guernsey on 14 July 2022, is to protect customers in the Bailiwick who make use of consumer credit in all its forms, including individual loans, home finance and credit for the purchase of goods and services. Firms offering or intermediating such services in or from within the Bailiwick will need to be licensed and will be regulated accordingly.
In addition, the Law and accompanying Rules covers Fintech platforms operating crowdfunding and peer to peer platforms as well as virtual asset service providers (“VASPs”). It introduces licensing for a wide range of activities related to crypto. Guernsey is introducing these Rules, in part, to ensure it remains compliant with the published expectations of the Financial Action Task Force which has set out detailed guidance on how countries must act to stop crypto being used for criminal purposes.
The Law will also replace the existing Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008, and introduce instead the licensing and regulation of “financial firm businesses”.
The Consultation Paper sets out, using worked examples, the scope of the licensing regime and how different sectors will be treated once the regime comes into effect.
In issuing this consultation, the Commission continues to seek feedback from a wide range of stakeholders, including consumers and potential licensees. This will assist the Commission in developing its supervisory approach.
Respondents are encouraged to submit their comments online using the Commission’s Citizen Space Consultation Hub at the following link, where copies of the Consultation Paper and draft Rules and Guidance can also be found: http://consultationhub.gfsc.gg/
Responses to the Consultation Paper are sought by 15September 2022.