Consultation Paper on Revised Pension Rules (September 2019)

Summary

This is the Guernsey Financial Services Commission's September 2019 Consultation Paper on Revised Pension Rules, issued under the Regulation of Fiduciaries, Administration Businesses and Company Directors etc (Bailiwick of Guernsey) Law, 2000. It sought industry feedback on proposals to revoke Rules 2 to 9 of the existing 2017 Pension Licensees Rules and to replace them with a new, more detailed Pension Scheme and Gratuity Scheme Rules regime, alongside changes to Rule 10.

• Governance: Proposed rules on scheme governance arrangements, governing documentation and the circumstances for appointing a Governance Committee.
• Notification and reporting: Proposed notification of scheme establishment, transfer or termination to the Commission, plus annual and quarterly returns.
• Member communications: Proposals on documentation for scheme members, information for new joiners, member borne charges disclosure, and provision of information about benefits.
• Contributions and transfers: Proposed notification timelines for non payment of employer contributions and guidance on risks arising during scheme transfers.
• Investment direction: Detailed proposed rules for licensee directed and third party directed investment approaches, including for occupational pension schemes.

The consultation period closed on 7 November 2019. The document text also includes a subsequent feedback statement (dated February 2020) summarising 14 respondents' comments and describing amendments made to the draft rules, together with the resulting final Pension Scheme and Gratuity Scheme Rules and Guidance, 2020, which revoke the prior 2017 and 2010/2015 rules and were stated to come into force on 31 December 2020, with licensees given until 1 January 2021 to achieve compliance. Because the source metadata identifies this record as the draft consultation paper itself, readers should treat the embedded feedback statement and final rules text as contextual background rather than the operative instrument.

Key obligations

• Respondents wishing to comment on the proposed Pension Rules were required to submit feedback to the Commission before the consultation closing date of 7 November 2019
• Per the embedded feedback statement, licensees were told they would be required to comply with the provisions of the new Rules from 1 January 2021
• Per the embedded final Rules text, licensees must complete amendments to their internal controls to ensure compliance with the Rules by 31 December 2020

Applies to

Pension licensees, Licensees under the Regulation of Fiduciaries, Administration Businesses and Company Directors etc (Bailiwick of Guernsey) Law, 2000, Pension scheme and gratuity scheme trustees and administrators, Financial Services Business

Deadlines

• 7 November 2019: Closing date for responses to the Consultation Paper on Revised Pension Rules
• 31 December 2020: Stated commencement date of the resulting Pension Scheme and Gratuity Scheme Rules 2020, and deadline for licensees to complete internal control amendments for compliance
• 1 January 2021: Date from which, per the feedback statement, licensees were told they would be required to comply with the new Rules