Guernsey’s Financial Services Commission (GFSC) has launched a consultation paper on proposals for increasing the licence fees paid by firms.
The GFSC is consulting on an overall increase in fees of 7.3%. Other specific proposals relating to fees that are outlined in the consultation paper are:
- a rebalancing of fees within the insurance sector on request of the industry body with the aim of making Guernsey’s Special Purpose Insurance sector comparable with others;
- an increase in the regulatory fee when operating an investment exchange within the Bailiwick; and
- an update to the fees for virtual asset service providers within an Actively Managed Certificate structure.
As noted in their 2022 and 2023 Fee Consultation Papers, the internal financial modelling suggested that the Commission would be capable of sustaining its operations over 2023 and 2024 with fee increases benchmarked to inflation. In line with those calculations the Commission is proposing an increase in overall fees of 7.3%, which is 1% below the rate of Guernsey inflation as at March 2023.
The assessment of requirements for 2024 have also taken into account the need to retain and recruit skilled staff and develop the IT and data management systems and infrastructure necessary to ensure the GFSC can continue to meet its regulatory obligations.
Speaking about the proposals, the Commission’s Chairman, Julian Winser (pictured), said: “The Commission seeks to contain the level of fee increases beyond those necessary and our fee increases historically, and in 2024, remain significantly lower than our peer jurisdictions. However, the Commission is not immune to rising levels of inflation and we continue to need to be able to retain and recruit talented staff in an unusually competitive financial services market.
“We are proposing these fees, being slightly under the rate of inflation, on the basis that the Commission aims through 2024 to use reserves to cover some portion of its ongoing costs, including our technology investment programme.”
The consultation period will close on Wednesday 20th September 2023.
