The Guernsey Financial Services Commission has confirmed that it will apply an increase of three per cent across all sectors for 2018, not including anomalies.
Anomalies include a flat fee of £2,000 for change of controller applications, which will be introduced under the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, and the Protection of Investors (Bailiwick of Guernsey) Law, 1987.
A similar fee will be introduced for all remaining sectors as soon as possible to minimise cross-licensee subsidisation in this area. The level of work involved for the Commission in dealing with a change of controller application is not dissimilar to that of a new licence application.
Also, in order to address the fall in fees generated from banking licensees and the increasing focus on conduct issues, it is proposed to increase the supplementary fees payable by retail banks to 50 per cent (currently 25 per cent) of their base annual fee.
An additional supplement is proposed for brand names where the Commission is, in effect, supervising two businesses, such as private banking and retail banking which requires additional supervisory resourcing. It is envisaged this fee will affect just one licensee.
Additionally, during 2016 the Commission was requested by the States of Guernsey to introduce pensions regulation to the bailiwick. The costs for the initiation of this project, including the associated technical developments to PRISM and the online submissions process, were absorbed by the Commission.
Nonetheless, as from July 2017, the pensions sector is now subject to ongoing supervision, which will require modest additional resources, the cost of which for 2018 will be met by each lead licensee engaged in pension business paying a fixed fee of £400 plus a £1 fee per regulated scheme member.
The GFSC’s estimated fee income for 2017 is £12.86 million and for 2018 it will be £12.87 million based on current estimates for new licensees and licence surrenders.