The Guernsey Financial Services Commission has issued two discussion papers seeking views on proposed rules to be made following the approval of the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000, and the Protection of Investors (Bailiwick of Guernsey) Law, 2020 (PoI).
Both laws form a part of the Commission’s Revision of Law (RoL) project.
The first discussion paper proposes making rules and guidance under the 2020 PoI law for notifying the Commission of certain activity that is ancillary to controlled investment business.
At present, such activity requires the granting of a discretionary exemption under the fiduciary regime.
The 2020 Fiduciaries Law introduces a new statutory exemption from licensing for such activity where this has been notified to the Commission under the PoI regime.
The proposal will introduce a more streamlined approach with consideration of this investment-related activity under the more appropriate umbrella of the PoI regime.
The second discussion paper provides for making rules around the re-categorisation of fiduciary licensees as primary and secondary licensees, as provided for under RoL.
This formalises an existing approach under the current regime, where joint licensees are set up to support a lead licensee.
While the Commission previously had dialogues with fiduciary licensees and the industry body on this subject, the paper seeks to obtain views and feedback specifically on the proposed definition of “actively trading”.
• A copy of both discussion papers can be found here.
• Respondents are encouraged to submit comments online using the Commission's Citizen Space Consultation Hub by 5 October.