Guernsey Regulator Supports New Service Provider Standard
by Jason Gorringe, Lowtax.net, London
24 October, 2014
The Guernsey Financial Services Commission (GFSC) has voiced support for a new benchmark on the regulation of Trust and Corporate Service Providers (TCSPs), which was developed by the Group of International Finance Center Supervisors (GIFCS).
The Standard on the Regulation of TCSPs – the first of its kind – introduces a new minimum benchmark that businesses administering international trusts and companies should follow. It is intended to promote and reinforce high standards in the sector among its membership, many of whom already regulate TCSP activity.
The standard addresses matters of both prudential and conduct regulation and is designed to complement the international supervisory standards of the Basel Committee, IOSCO, and IAIS.
The GIFCS working group was chaired by the GFSC's General Counsel, Philip Nicol-Gent, who said: "This is an extremely important area and considerable effort has been made by everyone involved to develop a proportionate and meaningful standard to which all jurisdictions can work towards. By adopting a common standard, jurisdictions will be able to more effectively demonstrate that their trusts and companies are being used for proper purposes. It will also aid the international fight against terrorist financing and money laundering."
Welcoming the new standard, the GFSC said Guernsey's TCSPs sector already operates to high standards. Over the next 12 months the GFSC will undertake an analysis of the regulatory regime to determine whether small adjustments may be required in order to underpin the new standard. Any proposed changes will then be incorporated into the Commission's work on revisions to legislation, which it is currently being taken forward on a collaborative basis with both government and industry.
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