Bailiwick Mind and Management Consultation Paper (February 2022)

Summary

This is a consultation paper issued by the Guernsey Financial Services Commission (GFSC) seeking feedback on proposed guidance about 'Bailiwick Substantial Mind and Management' under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 and the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020 (together the Supervisory Laws). The proposed guidance would clarify that maintaining local mind and management in the Bailiwick is a relevant factor in the Commission's assessment of whether a licensee conducts business prudently, one of the statutory minimum licensing criteria.

• Proposed guidance text: When assessing the adequacy and effectiveness of management oversight and control of a licensee, the Commission will take into account the number of senior executives resident in the Bailiwick, having regard to the nature, size and complexity of the licensee.
• Where guidance would be added: Section 2.1 of both the Licensees (Conduct of Business) Rules and Guidance, 2021 and the Fiduciary Rules and Guidance, 2021.
• Consultation questions: The Commission asks for comments on the proposed amendments to each set of Rules and Guidance.

This is a consultation paper only, not a finalised rule change; the Commission is collecting feedback before deciding whether and how to amend the guidance. Interested parties, including licensees under the Supervisory Laws, are invited to submit responses via the Commission's Consultation Hub.

Key obligations

• Interested parties wishing to comment must submit responses through the Commission's Consultation Hub by 21 March 2022

Applies to

licensees under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, licensees under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020, fiduciaries, administration businesses, investment business licensees

Deadlines

• 21 March 2022: Deadline for submitting responses to the consultation paper via the Commission's Consultation Hub
• 6 weeks: Consultation period during which the paper remains open for feedback