Lending, Credit and Finance Consultation (2017-07-18)

Summary

This is a Guernsey Financial Services Commission consultation paper proposing a new Lending, Credit & Finance (LCF) Law to replace the existing Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law 2008. It sets out proposed licensing classes, consumer protection rules, and AML/CFT requirements for firms providing lending, credit, finance and alternative financial products and services in or from the Bailiwick of Guernsey, and invites industry feedback before any legislation is drafted.

• Class 1 - Alternative Financial Products & Services: Covers crowdfunding (equity or debt), peer to peer lending, and other alternative financial business models; also flags future consideration of AML/CFT platforms, electronic agents and green investments.
• Class 2 - AML/CFT: Continues AML/CFT registration/licensing obligations for businesses currently within scope of the NRFSB Law, moving them from registration to full licensing status.
• Class 3 - Lending, Credit & Finance Consumer Protection: Introduces consumer protection controls for lending and credit firms, including financial promotions, creditworthiness assessment, transparency of loan terms and responsible lending, underpinned by proposed Principles of Conduct and indicative Rules (set out in Appendices B and C).
• Minimum criteria for licensing and supervision: Proposes minimum licensing criteria and an ongoing supervisory framework for all three licensee classes.

As a consultation paper, the document does not itself impose binding legal obligations; it seeks industry and public comment on the proposed framework, which the Commission intends to bring forward via a Policy Letter to the States of Guernsey and eventual Projet de Loi. Respondents are asked to submit comments via the Commission's Citizen Space portal or in writing.

Applies to

firms providing lending, credit and finance products or services in or from the Bailiwick of Guernsey, crowdfunding and peer to peer (P2P) lending platforms, alternative financial products and services providers, businesses subject to AML/CFT registration (Class 2 licensees) under the former NRFSB Law, consumer credit and finance firms (Class 3 licensees)

Deadlines

• Monday, 15 September 2017: Deadline for responses to the Lending, Credit & Finance Consultation Paper, submitted via Citizen Space or in writing to the Commission.