Exemption of Directorships Connected to Authorised and Registered Collective Investment Schemes (December 2022)

Summary

This document is a Guernsey Financial Services Commission consultation paper (issued 8 December 2022) proposing a new licensing exemption under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020, for individuals acting as directors of companies connected to authorised or registered collective investment schemes. The same file also contains the Commission's subsequent feedback statement (issued 10 July 2023) summarising consultation responses and describing the final Regulations that were made and took effect.

• Original proposal: Add a new exemption (proposed section 3(1)(ad)) so an individual director of a company connected to an authorised or registered collective investment scheme is exempt from licensing where the company is administered by the same designated administrator as the scheme and subject to that administrator's AML/CFT supervision, and the director also serves as a director of the scheme or its general partner.
• Feedback outcome: Following consultation, the Policy and Resources Committee made the Regulation of Fiduciaries etc (Bailiwick of Guernsey) (Amendment) Regulations, 2023, which came into effect on 8 July 2023, adopting a revised version of the CIS-connected directorship exemption.
• Additional new exemptions created: The Regulations also widened the existing family company exemption, and added exemptions for directors of States-owned companies, members of the Guernsey Banking Deposit Compensation Board, and directors of non-Bailiwick companies supervised by an IOSCO Multilateral MOU signatory.
• Registration regime interaction: The Commission clarified that the Director Registration Regime applies only to directors relying on the separate 'up to six' exemption, and that broadening licensing exemptions may reduce the number of directorships subject to registration, but registration exemptions and licensing exemptions remain distinct and neither removes obligations under Schedule 3 of the Proceeds of Crime Law.

Overall the document explains the policy rationale, the consultation process, and the final exemption categories added to the Fiduciaries Law, rather than imposing new direct filing or reporting duties on firms.

Key obligations

• Directors seeking to rely on the new collective investment scheme connected exemption must ensure the company is connected to an authorised or registered scheme, is administered by the same designated administrator as the scheme, and is subject to that administrator's AML/CFT supervision by the Commission.
• A director relying on the exemption must be an individual who also acts as director of the connected collective investment scheme or its general partner.
• Directors relying on the non-Bailiwick supervised financial firm exemption must establish that the relevant company is genuinely supervised by an IOSCO Multilateral MOU signatory and does not fall outside supervision through home jurisdiction exemptions.
• Individuals relying on exemptions under the Fiduciaries Law remain subject to obligations under Schedule 3 of the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999.

Applies to

licensed fiduciaries, administration businesses, company directors, individuals acting as directors, collective investment schemes (authorised and registered), designated administrators, trust companies

Deadlines

• 23 January 2023: Deadline for responses to the original consultation paper.
• 8 July 2023: Date the Regulation of Fiduciaries etc (Bailiwick of Guernsey) (Amendment) Regulations, 2023 came into effect, introducing the finalised exemptions.