The Guernsey Financial Services Commission has published a consultation paper, following a decision by the States of Guernsey in January to increase the discretionary financial penalties the Commission is able to apply in cases where there have been serious regulatory shortcomings.
The legislation underpinning the new penalties has not yet been implemented. But 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, the Commission intends to publish a schedule of bandings, as set out in the consultation paper. While not definitive, these 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 published in January. 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 consultation paper can be found on the GFSC's website. The closing date for submissions is Friday 17 June.