Banking Supervision (Bailiwick of Guernsey) Law, 2020

Summary

This is the core primary legislation governing bank licensing and prudential supervision in the Bailiwick of Guernsey. It prohibits unlicensed deposit-taking, sets out the licensing regime for banks, and gives the Guernsey Financial Services Commission wide powers to supervise, investigate and discipline licensed institutions.

• Licensing: Any person carrying on deposit-taking business in the Bailiwick must hold a banking licence granted by the Commission; applications must include statements on the nature and scale of the proposed business, management arrangements, and the prescribed fee.
• Ongoing notifications: Licensed institutions must notify the Commission of changes affecting an exemption, changes in holders of approved or vetted supervised roles, and acquisitions or reductions of voting power in the institution.
• Supervisory powers: The Commission may require information and documents, appoint skilled persons to investigate, request meetings with auditors and actuaries, and issue directions to licensed institutions.
• Accounts and rules: Licensed institutions must keep audited accounts available for inspection and comply with Commission rules on accounts, annual returns and annual reviews, plus minimum capital requirements.
• Disclosure restrictions: Information obtained by the Commission is subject to statutory confidentiality restrictions, with limited permitted disclosure gateways.
• Offences and penalties: Contravention of the licensing prohibition, false information, and related breaches are criminal offences, with liability extended to directors and unincorporated bodies in certain cases.
• Compensation scheme: The Commission has power to establish a depositor compensation scheme.

The Law also covers appeals against Commission decisions (to the Royal Court and Court of Appeal), advertising and unsolicited calls relating to deposits, and general provisions on rule-making, service of documents, and electronic submission requirements.

Key obligations

• A person must not accept deposits in the course of deposit-taking business in the Bailiwick without a banking licence granted by the Commission.
• A person relying on an exemption must give the Commission written notice within 14 days of becoming aware that circumstances have changed so the exemption no longer applies.
• Applicants for a banking licence must provide the statements, information, documents and prescribed fee required by the Commission, and must respond to Commission requests for additional information or documents.
• Licensed institutions must notify the Commission of the holding, change or objection to holders of approved and vetted supervised roles.
• Licensed institutions must notify the Commission of acquisitions or reductions of voting power as required under section 17.
• Licensed institutions must report large exposures to the Commission.
• Licensed institutions must make audited accounts available for inspection and comply with Commission rules on accounts, annual returns and annual reviews.
• Licensed institutions must maintain the minimum capital requirement set by or under the Law.
• Persons under investigation must not falsify, conceal or destroy documents relevant to an investigation, and must retain documents as required.
• Documents required to be submitted to the Commission must be submitted in electronic form and by electronic means where so required.

Applies to

licensed institutions (banks), applicants for banking licences, holders of approved or vetted supervised roles, auditors of licensed institutions, persons carrying on deposit-taking business, exempted persons under Schedule 1

Deadlines

• 14 days: A person relying on an exemption from the deposit-taking licensing requirement must notify the Commission in writing within 14 days of becoming aware that the exemption no longer applies.
• 3 months (or longer period specified by the Commission): Period within which an applicant for a banking licence must provide required information before the application may be treated as deemed withdrawn.
• 14 days after notice: Following Commission notice that failure to provide required information will result in deemed withdrawal, the application is deemed withdrawn if the information is still not provided within 14 days.

Related documents

• This document amends Insurance Business (Bailiwick of Guernsey) Law, 2002
• Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (Consolidated) amends this document
• Financial Crime Returns Rules, 2026 is made under this document
• Banking Supervision (Large Exposure) Rules and Guidance, 2021 is made under this document
• Code of Practice for Banks is made under this document
• Financial Crime Returns Rules, 2025 is made under this document
• Financial Services Commission (Fees and Administrative Penalties) Regulations, 2024 is made under this document
• Banking Supervision (Deposit Advertisements and Communications to the Commission) Rules, 2021 is made under this document
• Banking Supervision (Annual Compliance Return) Rules and Guidance, 2021 is made under this document