Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 (Consolidated text)

Summary

This is the consolidated primary law establishing the licensing and regulatory regime for insurance managers and insurance intermediaries operating in or from the Bailiwick of Guernsey, administered by the Guernsey Financial Services Commission (GFSC). It prohibits acting as an insurance manager or insurance intermediary without a licence, and sets out ongoing conduct, reporting, governance and disclosure requirements for licensees.

• Licensing: No person may act as an insurance manager or carry on/profess to carry on business as an insurance intermediary in or from the Bailiwick without a licence granted by the Commission (or, for intermediaries, unless a licensed insurer).
• Conduct and governance: Licensees must comply with Principles of Conduct, Conduct of Business Rules, and any directions issued by the Commission; insurance intermediaries must ensure advice is given only through authorised insurance representatives and that insurance is placed only with recognised insurers.
• Ongoing reporting: Licensees must file an annual return, appoint auditors, prepare and have audited annual accounts, and provide the auditor's management letter and evidence of indemnity insurance to the Commission.
• Notifications: Licensees must notify the Commission of significant shareholdings, changes in voting power, regulatory conditions or penalties imposed elsewhere, compliance status, and changes of circumstance affecting any Commission direction (generally within 14 days of becoming aware).
• Supervised roles: Approved and vetted supervised roles are subject to notification to, and possible objection by, the Commission, including on any change of holder.
• Enforcement and appeals: The Commission may require information and documents, appoint skilled persons, issue directions, and impose conditions; licensees have rights to make representations and to appeal Commission decisions to the Royal Court and Court of Appeal.

The Law also covers disclosure of information restrictions, advertising regulations, criminal penalties for contravention (including for unincorporated bodies and directors), fees, and savings provisions relating to earlier amending Ordinances. It has been amended numerous times since 2002, most recently reflected through 2023 amendments to fees and 2021 amendments to licensing and direction provisions.

Key obligations

• A person must not act as an insurance manager in or from the Bailiwick without a licence granted under section 4.
• A person must not carry on or profess to carry on business as an insurance intermediary in or from the Bailiwick without a licence (or being a licensed insurer).
• Licensees must comply with the Principles of Conduct and any applicable Conduct of Business Rules.
• Insurance intermediaries must ensure advice and other regulated activities are provided only through authorised insurance representatives.
• Insurance intermediaries must only place insurance with recognised insurers.
• Licensees must file an annual return with the Commission.
• Licensees must appoint auditors and prepare audited annual accounts, depositing these with the Commission.
• Licensees must provide the Commission with the auditor's management letter and evidence of indemnity insurance.
• Licensees must notify the Commission of continuing business relationships as required.
• Licensees must notify the Commission of any regulatory conditions or penalties imposed on them, and of compliance matters.
• Persons must notify the Commission of acquisition of significant shareholding or changes in voting power in a licensee.
• A person subject to a Commission direction must inform the Commission of any change of fact, circumstance or information within 14 days of becoming aware of it (or such other period as the Commission determines).
• Holders of approved or vetted supervised roles, and changes to such holders, must be notified to the Commission.

Applies to

insurance managers, insurance intermediaries, licensed insurers, insurance representatives, auditors of licensees, holders of supervised roles

Deadlines

• within 14 days (or such other period as the Commission may determine): A person subject to a Commission direction under section 1(2A) or 2(3A) must inform the Commission of a change of fact, circumstance, or previously supplied information.
• 1st November 2021: Amendments inserting the bracketed provisions in section 1 (subsections (1), (2A) and (5)) took effect from this date, subject to savings provisions in section 78A.

Related documents

• Financial Crime Returns Rules, 2026 is made under this document
• Insurance Intermediaries Rules and Guidance, 2021 - Consolidated is made under this document
• Code of Practice for Insurance Intermediary Applicants and Licensees Conducting Business from within the Bailiwick of Guernsey 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
• Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (Consolidated) amends this document
• Machinery of Government (Transfer of Functions) (Guernsey) Ordinance, 2003 (Consolidated text) amends this document
• Transfer of Funds (Alderney) Ordinance, 2017 amends this document
• Transfer of Funds (Guernsey) Ordinance, 2017 amends this document
• Transfer of Funds (Sark) Ordinance, 2017 amends this document
• Code of Conduct for Authorised Insurance Representatives is made under this document
• Financial Crime Returns Rules, 2023 (Guernsey Statutory Instrument No. 19) is made under this document