Regulation

Home Business In Guernsey Regulation

Best-in-class regulation

Regulation is sometimes seen as unhelpful to the business world.  It doesn’t have to be that way.

In Guernsey, our regulatory regime for financial services has a close connection to the island’s excellent reputation in banking, fiduciary services, insurance, investment management, and pensions.

Day-to-day responsibility for the regulation and supervision of financial services rests with the Guernsey Financial Services Commission (GFSC) who, since 1987, have regulated and supervised financial services in Guernsey with integrity, proportionality and professional excellence.

The GFSC have consistently delivered a timely service to my clients and a commercial approach to regulation over many years. They understand that ‘time is of the essence’. It is for that reason that I recommend Guernsey as the location of choice for non-EU fund managers.Jason Glover, Simpson Thacher & Bartlett LLP

International cooperation

In January 2011 the International Monetary Fund published six evaluation reports which recognised and commended Guernsey's high standards of financial regulation, supervision and stability along with its robust criminal justice framework.

Guernsey was assessed as having a high level of compliance with the international standards against which it was judged - the 25 Basel Core Principles for Effective Banking Supervision and the 28 Insurance Core Principles of the International Association of Insurance Supervisors.

Most recently, in 2016 MONEYVAL reported Guernsey as being compliant or largely compliant with 48 out of 49 of the FATF recommendations - the highest standard of any jurisdiction so far assessed.

 

Compliant

Largely compliant

Partially compliant

Non-compliant

Guernsey

28

20

1

0

Jersey

16

32

1

0

UK

24

12

10

3

BVI

18

15

15

1

United States

15

28

2

4

Cayman Islands

14

24

10

1

Isle of Man

12

24

13

0

Singapore

11

32

4

2

Hong Kong

10

20

15

4

Bermuda

9

10

16

14

China

8

16

16

9

UAE

3

17

18

11

Luxembourg

1

9

30

9

 

Being regulated

Most financial services businesses will need to be licensed or registered with the GFSC before undertaking business in the Bailiwick.

The GFSC ensures that the providers of financial services in the island carry out their business to established international standards: they should be owned and operated by fit and proper persons, have adequate capital for their business, and observe good business practice.