The International Finance Centre of Guernsey is introducing a modern supervisory framework for pensions, bringing its regulatory regime into line with international standards and enabling Guernsey firms to bring regulated international pension products to market.
The new regime means firms providing pension products will be formally supervised as pension providers for the first time, and it will enable those firms to apply for broad exemptions under the Common Reporting Standard (CRS).
The decision to introduce a set of Conduct of Business Rules for domestic and international schemes follows a late-2016 review in which there was strong support from the island’s 50-plus pension providers to regulated pension products.
Supervisory scope
Firms providing pensions have always been subject to licensing and supervision, and Guernsey has a reputation for excellence in the regulation of financial services, but the scope of the supervisory regime had not previously extended to pension schemes.
The island’s regulator, the Guernsey Financial Services Commission, is adding the formation, administration and management of pension schemes to the list of regulated activities set out under the island’s Regulation of Fiduciaries Law.
The rules also include provisions for the regulation of schemes themselves, requiring notification and reporting of scheme data. They will apply to domestic and international, personal, group and occupational schemes.
These rules will, among other things, enable pension providers in Guernsey to apply for exemptions under CRS.
The revised regime is due to take effect from 30 June 2017, with a transitional period proposed to allow firms to fully comply and attain regulated pension status for their pension plans.