Consultation Paper on the Statutory Instruments proposed to be re-issued under the supervisory laws (April 2021)

Summary

This is a consultation paper (with published feedback) issued by the Guernsey Financial Services Commission on re-issuing the Statutory Instruments (regulations and rules) made under the supervisory laws, ahead of the commencement of the new Protection of Investors, Banking Supervision, Fiduciaries, Enforcement Powers and Insurance Business/Insurance Managers and Intermediaries Laws. It does not itself create new binding rules; it explains how existing regulations and rules will be updated, consolidated, revoked or archived to align with the new legislation, and summarises industry feedback and the Commission's responses.

• Scope of changes: Covers Statutory Instruments under the POI Law, Banking Supervision Law, Fiduciaries Law, Enforcement Powers Law, and the Insurance Business and Insurance Managers/Intermediaries Laws, including rules for collective investment schemes, capital adequacy, conduct of business, prospectuses, and insurance business.
• No substantive policy change: The Commission confirms the re-issued instruments retain the same substance and meaning as the current ones; changes are limited to updated terminology, harmonised layout and numbering, correction of drafting errors, and alignment of references with the new laws.
• Revocations and archiving: A number of Statutory Instruments that are no longer used will be revoked or moved to an archived section of the Commission's website (e.g. certain Class A scheme rules, the Fiduciary Advertisements and Annual Returns Regulations).
• Deferred items: Certain rules requiring more significant redrafting (e.g. Compensation of Investors Rules, Investment Exchange Notification Rules, Class A scheme rules, Non-Guernsey Schemes rules, Fiduciary Rules) are excluded from this paper and will be addressed in separate future consultations.
• Terminology changes: Introduces the term designated administrator across fund rules and replaces 'shall' with 'must' throughout; a change in designated administrator still cannot take effect until the Commission confirms the new designation.
• Savings provisions: Savings provisions are inserted into all re-issued instruments so that the current status of firms and funds is preserved, and no transitional period is considered necessary since no policy changes are being made.

The re-issued Statutory Instruments come into effect at the same time as the New and Amended Laws commence; a second consultation paper covering related guidance documents and codes was to follow. The consultation itself closed in June 2021 and this document reflects the feedback received and the Commission's finalised approach.

Key obligations

• A change in designated administrator cannot take effect until the Commission has confirmed the designation of the new administrator (restated notification requirement).

Applies to

banks, fiduciaries and administration businesses, company directors licensees, insurers, insurance managers and insurance intermediaries, investment businesses / securities investment business licensees, collective investment scheme operators, administrators and custodians (funds), private investment funds

Deadlines

• 21 April 2021: Consultation paper opened for comment.
• 17 June 2021: Consultation period closed (8 weeks).
• when the New and Amended Laws come into force: Re-issued Statutory Instruments will take effect at the same time as the New and Amended Laws commence.