The Guernsey Financial Services Commission (GFSC) has launched a consultation paper on its proposals for increases in the 2017 licence fees paid by firms. The consultation period will close on Wednesday 31 August.
An overall blended rate of increase of two per cent, including anomalies, is proposed for 2017. Commission Chairman Cees Schrauwers said: "This will be the fifth year in succession where the Commission has proposed fee increases of two per cent or less. It remains our intention to continue to focus on strong cost control and ensure that future fee increases are set at modest levels with a view to helping our firms remain competitive."
One significant proposal would see international commercial general insurers and reinsurers bearing a greater proportion of the fees relative to other types of insurer. This would enable insurance-linked securities (ILS) business to bear a lower proportion of the fees.
Jeremy Quick, Director of Banking and Insurance, explains: "The Commission has worked with the Guernsey International Insurance Association [GIIA] in reviewing the overall fee structure for the sector. GIIA proposed, with the support of its membership, a restructuring of certain fees, which is seen as helpful for the development of the ILS area of the market. However, any restructuring proposal remains subject to the consultation process."
The estimated fee income for 2016 is £12.67 million and for 2017 it will be £12.93 million based on current estimates for new licensees and licence surrenders.
The consultation paper is available from the GFSC website by clicking here