The GFSC have published a Consultation Paper following the Billet d’Etat set out by the States of Guernsey in January of this year, which what was then unanimously approved, to increase the discretionary financial penalties which the Commission is able to apply in cases where there have been serious regulatory shortcomings.
The legislation which will underpin the new penalties has not yet been implemented. However, in light of the States’ decision to increase them, the opportunity is being taken to consult early with industry on how the Commission proposes to apply the new levels. In general terms and as a guide, the Commission is intending to publish a schedule of bandings as set out in the Consultation Paper which, while not definitive, will provide guidance on the range of penalties and how they might be applied depending on the characteristics of any serious regulatory failings for which firms and individuals are found responsible.
Director General of the Commission, William Mason, said: “We have sought to explain in the consultation paper how we propose to apply the new penalties in a proportionate manner. The States have chosen to increase them to bring Guernsey into line with international expectations following Guernsey’s Moneyval report which was published in January of this year. It is the Commission’s aim to make proportionate use of the new penalties such that Guernsey continues to be perceived as a welcoming jurisdiction for good quality financial services business.”
The Technical Sub Comittee and GIBA are seeking Insutry views on the Consultation. The closing date for submissions is Friday 17th June and we could ask that submissions be emailed to Rhona Humphreys (E: Rhona.Humphreys@imperiumtrust.com) by Friday 11th June.