The Guernsey Financial Services Commission has announced plans to increase licence fees paid by firms from 1 January 2022 by 7.6%, with the agreement of the Policy & Resources Committee.
On 16 July, the Commission published a consultation paper on its 2022 fees containing four main proposals:
• An overall fee increase of 10.1% for all sectors
• A restructuring of fees for the investment sector
• Changes arising from the update to most of the sectors’ laws following the Revision of Laws project
• Creating a cap for pension scheme fees.
The Commission’s response to the feedback received as part of the consultation can be found here.
Given the significantly higher than expected level of authorisations so far this year – which should have an ongoing positive impact on the Commission's finances as annual licence fees from newly authorised entities are paid from 2022 onwards – the Commission is able to proceed with a fee increase of 7.6% rather than the 10.1% on which it consulted.
Restructuring of fees
The Commission said it endeavours to align fees with the costs of regulation undertaken, so it will undertake a restructuring of the fees within the investment sector so investment licensees that require greater supervisory attention pay a licence fee based on the size of the firm.
Also, an upper cap will be introduced on the level of fees charged per member in a pension scheme to 7,500 members. This step has been taken in response to feedback that the previous fee structure discouraged larger pension schemes from considering Guernsey as a cost-effective jurisdiction.
Director General William Mason (pictured) commented: “The additional income raised will allow us to slightly increase officer numbers - enabling us, inter alia, to increase on-the-ground supervision as we prepare for the bailiwick's inspection against the intended outcomes of the Financial Action Task Force.
"The fee increase will also allow us to invest to improve our technology to maintain good-quality, proportionate regulation to international standards within the bailiwick. Finally, it will allow us to continue to reward our officers fairly in a buoyant financial services employment market.”