Guernsey Consults On New Financial Penalties
by Jason Gorringe, Lowtax.net, London
03 May, 2016
Guernsey's financial services regulator, the Guernsey Financial Services Commission, has published a consultation paper on new discretionary financial penalties that may be imposed in cases where there have been serious regulatory shortcomings.
The paper follows the decision in January of this year by Guernsey's legislature, the States of Guernsey, to increase discretionary financial penalties in these circumstances.
The legislation which will underpin the new penalties has not yet been implemented. However, in light of the decision to increase penalties, the Commission is taking the opportunity to consult early with industry on how it proposes to apply the new penalty levels.
The Commission intends to publish a schedule of bandings as set out in the paper which, while not definitive, will provide guidance on the range of penalties and how they might be applied. This will depend on the characteristics of any serious regulatory failings for which firms and individuals are found responsible.
The Director General of the Commission, William Mason, said: "We have sought to explain in the consultation paper how we propose to apply the new penalties in a proportionate manner. The States have chosen to increase them to bring Guernsey into line with international expectations following Guernsey's Moneyval report which was published in January of this year. It is the Commission's aim to make proportionate use of the new penalties such that Guernsey continues to be perceived as a welcoming jurisdiction for good quality financial services business."
The closing date for submissions is June 17, 2016.
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