Guernsey Introduces Client Asset Handling Rules
by Jason Gorringe, Lowtax.net, London
22 February, 2017
Guernsey's financial services regulator, the Guernsey Financial Services Commission, said it intends to introduce rules governing the holding and administration of client assets in 2017.
The recent announcement follows a thematic review of the fiduciary duties and responsibilities of the island's Fiduciary Licensees.
The Commission said the introduction of client asset rules will provide clients of Fiduciary Licensees with a degree of protection should a firm fail, which would be equivalent to that afforded to customers of other financial institutions.
The introduction of client asset rules also ensures Guernsey will meet its April 2019 commitment to have rules in place that satisfy the international standard for the holding of client money, as set down by the Group of International Finance Centre Supervisors.
The Commission said it will need to have client asset rules in place in 2017 to meet its April 2019 commitment. To this end, the Commission said it is liaising with the Guernsey Association of Trustees and rules are currently being drafted. A consultation paper will be released during the first half of 2017.
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