The Policy & Resources Committee is seeking views from industry and stakeholders on a proposed changes to rules which affect some individuals acting as company directors in the Bailiwick.
Acting as a director for any company in the Bailiwick requires directors to hold a personal fiduciary licence under the Fiduciaries Law. There are a number of exemptions to this requirement. By way of example, some of these include when a director holds the role in an honorary or charitable capacity; when the person is the director of a local trading company based in Guernsey or a director of a company quoted on a recognised stock exchange; or when the company already holds a fiduciary licence which encompasses all its directors.
One exemption under the Fiduciaries Law is the ‘six directorship’ exemption, which means individuals who hold directorships of six or fewer companies are not required to hold a personal fiduciary licence. They are, however, still subject to anti-money laundering and counter-terrorism financing obligations. In 2015, a Moneyval report recommended measures should be introduced to ensure effective compliance with these obligations.
The Policy & Resources Committee is therefore proposing changes which would see a registration framework extended to directors who come under the ‘six directorship’ exemption. This is proposed as a practical and proportionate solution to deliver on the recommendation.
It is envisaged that certain directors will be exempt from the registration requirements. In addition, the proposals will not directly impact individuals who rely on other exemptions under the Fiduciaries Law (including those cited above i.e. charitable directorships; directors of companies based in Guernsey which are trading locally – such as local florists, grocers, restaurants; or employees of licensed trust and corporate service providers holding directorships in the course of their duties).
Further information, including details of proposed registration requirements and exemptions are included in the consultation document which can be found here.
The Policy & Resources Committee would welcome feedback from all stakeholders. Comments can be sent in by emailing the Policy and Resources Committee or the Guernsey Financial Services Commission, by 16 January 2023.
