Consultation Paper on the Annual Compliance Return Rules proposed to be issued under the Banking Supervision (Bailiwick of Guernsey) Law, 2020 (September 2021)

Summary

This is a GFSC consultation paper (closed for comment 15 September 2021) proposing new Annual Compliance Return Rules to be issued under the Banking Supervision (Bailiwick of Guernsey) Law, 2020 (the New Banking Law). The draft Rules would replace the existing Guidance on the Annual Compliance Form for Banks, transposing into formal Rules the annual review and reporting requirements previously set out in the 1994 Banking Law and associated guidance.

• Purpose: Seeks feedback from all banking licensees on proposed Annual Compliance Return Rules needed because the New Banking Law (section 40) gives the Commission power to specify, by rule, the areas an annual review must cover, rather than the Law itself specifying them as under the 1994 Banking Law.
• Policy approach: The Commission states the proposed Rules do not introduce substantive policy changes; aside from updated terminology, requirements are intended to remain consistent with current practice under the existing Annual Compliance Form Guidance.
• Noteworthy amendments: References updated to align with the New Banking Law; an outdated reference to the Enhanced Liquidity Approach removed from Statement C (Liquidity Stress Testing); the ICAAP/SREP frequency guidance under Statement D updated to reflect current practice; and the submission deadline for the Annual Compliance Form proposed to be changed to match the deadline for licensees' audited accounts.
• Next steps: Responses will be considered with a view to issuing the final Annual Compliance Return Rules during 2021, at which point the current Annual Compliance Form Guidance will be withdrawn.

As a consultation on draft rules, the document itself does not yet impose binding requirements on banks; it invites comment and signals the intended future replacement of existing guidance with formal Rules of largely equivalent substance.

Key obligations

• Licensed banks and interested parties wishing to comment must submit responses to the consultation by 15th September 2021 via the Commission's Consultation Hub
• Once finalised, banks will be required to submit an Annual Compliance Return/Form covering the areas specified in the new Rules, including confirmation of an annual review as required under section 40 of the New Banking Law
• Under the proposed change, the Annual Compliance Form submission deadline would be aligned with the deadline for licensees' audited accounts

Applies to

banks licensed under the Banking Supervision (Bailiwick of Guernsey) Law

Deadlines

• 15th September 2021: Closing date for responses to the Consultation Paper
• during 2021: Anticipated timeframe for the Commission to issue the final Annual Compliance Return Rules, after which the current Annual Compliance Form Guidance will be withdrawn