Discussion Paper on Proposals to Create a Single Fiduciary Handbook and Revise Pension Rules (March 2019)

Summary

This is a discussion paper issued by the Guernsey Financial Services Commission seeking industry feedback on proposals to consolidate the current fiduciary Codes of Practice into a single Fiduciary Handbook, and to fold the conduct of business elements of the Pension Rules into that same Handbook. It is a working document only, intended to inform a later Consultation Paper, and does not itself change any legal requirements.

• Single Fiduciary Handbook: Proposes repealing the separate Codes of Practice for Corporate Service Providers, Trust Service Providers and Foundation Service Providers, replacing them with one consolidated Handbook that also incorporates the GIFCS Standard on Trust and Corporate Service Providers.
• Pension Rules consolidation: Proposes repealing Chapters 2 to 9 (Conduct of Business) of the Pension Licensees Rules and absorbing them into the new Fiduciary Handbook, with a revised, narrower set of Pension Rules based on the remaining Chapter 10 content.
• Personal Fiduciary Licensees: Considers whether the new Handbook should apply to both Full Fiduciary Licensees and Personal Fiduciary Licensees together, with the Code of Practice on Company Directors continuing to apply separately to PFLs acting only as directors.
• New topic areas: Proposes introducing new Handbook provisions on client money (segregation, definitions of Client and Client Money), outsourcing, client communications and advertisements, and terms of business.
• Pension Rules feedback: Part 2 responds to industry comments received since the 2017 introduction of the Pension Rules, clarifying definitions (e.g. Appropriate Financial Adviser, occupational pension scheme), reporting obligations, and disclosure expectations under the Trust Law.

No rules are made final by this paper; it is a consultation exercise. Respondents were invited to comment via the Commission's Consultation Hub by the stated closing date, after which the Commission intended to develop detailed proposals in a future Consultation Paper.

Applies to

licensed fiduciaries (Full Fiduciary Licensees), Personal Fiduciary Licensees, Corporate Service Providers, Trust Service Providers, Foundation Service Providers, pension services providers/pension licensees, company directors licensees

Deadlines

• 30 April 2019: Closing date for responses to the Discussion Paper (consultation feedback deadline).