Regulation
Banking Supervision (Bailiwick of Guernsey) Regulations, 1994
In forceView on GFSC's website Source document
Summary
This 1994 Guernsey statutory instrument implements provisions of the Banking Supervision (Bailiwick of Guernsey) Law, 1994. It specifies certain deposit-taking transactions that are exempt from the Law's general prohibition on accepting deposits, sets rules for deposit advertising in the Bailiwick, defines what auditors must report to the Guernsey Financial Services Commission, and adds a named entity to the Law's list of exempt persons.
- Exempt transactions: Deposits accepted by charities (from other charities, or interest/premium free), industrial and provident societies (withdrawable share capital), advocates and solicitors acting under their professional accounts rules, and social, cultural or recreational clubs from members are exempted from the deposit-taking prohibition.
- Deposit advertising: Any person other than a licensed institution who wishes to advertise deposits in the Bailiwick must first obtain the Commission's written permission, which may carry conditions; all deposit advertisements, whether from licensed institutions or not, must conform to the Association of Guernsey Banks' Code of Conduct.
- Auditor reporting duty: Auditors or other specified persons must communicate to the Commission matters they have reasonable cause to believe show that Schedule 3 criteria for a licensed institution are or may not be fulfilled, or that are otherwise materially relevant to the Commission's functions; this also applies to former licensed institutions.
- New exempt person: Schedule 1 of the Law is amended to add the Channel Islands Co-Operative Society Limited as an exempt person, subject to conditions: the exemption covers only deposits from Society members, members may not increase their combined share capital and loan exposure beyond 20,000 pounds, and any deposit advertisements must be published only to members and comply with the Association of Guernsey Banks' Code of Conduct.
The Regulations came into force on 1 October 1994 and remain part of the Bailiwick's banking supervision framework unless subsequently amended or repealed.
Key obligations
- A person other than a licensed institution wishing to advertise deposits in the Bailiwick must obtain prior written permission from the Commission and comply with any conditions imposed.
- All deposit advertisements, whether by licensed institutions or others, must conform to the Code of Conduct of the Association of Guernsey Banks as amended from time to time.
- Auditors or other persons described in section 33(1) of the Law must communicate to the Commission matters giving reasonable cause to believe Schedule 3 criteria are not fulfilled or that are materially relevant to the Commission's functions, including in relation to former licensed institutions.
- Advocates relying on the exempt transaction for client deposits must act in accordance with the Advocates' Accounts (Deposit Interest) Rules 1989, the Advocates Trust Accounts Rules 1989 and the Advocates' Accounts Rules 1989.
- Solicitors relying on the exempt transaction must act in accordance with their professional governing body's account-keeping rules.
- Members of the Channel Islands Co-Operative Society Limited must not increase their combined share capital and loan exposure to the Society beyond 20,000 pounds.
- Any deposit advertisements by the Channel Islands Co-Operative Society Limited must be published only to members and must conform to the Association of Guernsey Banks' Code of Conduct.
Applies to
licensed institutions, charities, industrial and provident societies, advocates, solicitors, social, cultural and recreational clubs, auditors of licensed institutions, Channel Islands Co-Operative Society Limited
Deadlines
- 1st October 1994: Commencement date on which the Regulations come into force.