Banking Supervision (Accounts, Disclosure and Reporting) Rules and Guidance, 2021

Summary

These Rules set out accounting, audit submission and public disclosure requirements for banks licensed under the Banking Supervision Law in Guernsey. They replace the 1994 Accounts Rules and apply differently depending on whether the licensed institution is incorporated within or outside the Bailiwick.

• Bailiwick incorporated banks: Must prepare annual accounts using an approved standard (IFRS, UK GAAP or US GAAP, or an alternative approved in advance by the Commission), and submit audited accounts, the auditor's report and any management letter to the Commission within three months of their completion.
• Auditor's report content: Must state the basis of the auditor's opinion and whether the accounts show a true and fair view and comply with the Law and the Companies (Guernsey) Law, 2008.
• Non Bailiwick incorporated branches: Must provide the Commission with the audited accounts of the main group, including the auditor's report, within one month of publication.
• Public disclosure: Bailiwick incorporated licensees must make available on request and publish online, within one month of submitting accounts to the Commission, the audited accounts and key metrics: CET1 capital asset ratio, LCR or LMR, Leverage Ratio, and (once required) NSFR.
• Reporting consistency: Disclosed figures must relate to the balance sheet date used in the accounts and must be consistent with figures reported to the Commission in BSL/2 and LCR/LMR regulatory returns.
• NSFR disclosure timing: NSFR disclosure is not required until the Commission sets a minimum NSFR requirement, which it will announce at least six months before introduction.

The Commission retains discretion to exclude or modify any provision for a specific licensee by written notice, and derogations from the accounts submission timeline require the Commission's written consent. The 1994 Accounts Rules are revoked and superseded by this instrument.

Key obligations

• Bailiwick incorporated licensed banks must prepare annual accounts using an approved accounting standard (IFRS, UK GAAP or US GAAP) or an alternative approved in advance by the Commission.
• Bailiwick incorporated licensees must submit audited accounts, the auditor's report and any management letter to the Commission no later than three months from the date of their completion.
• The auditor's report must state the basis of opinion and whether accounts show a true and fair view in accordance with the Law and Companies (Guernsey) Law, 2008.
• Licensed entities incorporated outside the Bailiwick must provide the Commission with the main group's audited accounts and auditor's report no later than one month following their publication.
• Bailiwick incorporated licensees must make available on request and publish online, within one month of submitting accounts to the Commission, the audited accounts and specified key metrics (CET1 CAR, LCR/LMR, Leverage Ratio, and NSFR once applicable).
• Disclosed and reported figures must be for the relevant balance sheet date and must be consistent with the information reported in BSL/2 and LCR/LMR regulatory returns.
• Any derogation from the accounts submission timeline requires the Commission's prior written consent.
• Approval for use of an alternative accounting standard must be sought from the Commission prior to its use or implementation.

Applies to

licensed banking institutions incorporated within the Bailiwick, licensed banking entities incorporated outside the Bailiwick (branches)

Deadlines

• no later than three months from the date of completion of accounts: Bailiwick incorporated licensees must submit audited accounts, auditor's report and management letter to the Commission.
• no later than one month following publication: Non Bailiwick incorporated entities must provide the Commission with the main group's audited accounts and auditor's report.
• no later than one month following submission of accounts to the Commission: Bailiwick incorporated licensees must publish/make available online the audited accounts and key metrics.
• 1 November 2021: Commencement date for the Rules, other than the NSFR disclosure requirement.
• at such time as the Commission decides to set a minimum NSFR requirement (with six months' advance notice): Commencement of the NSFR disclosure requirement under Rule 2.3.2(1)(b)(iv).