Guernsey Regulator Confirms Small License Fee Rise
by Jason Gorringe, Lowtax.net, London
04 November, 2016
The Guernsey Financial Services Commission, the island's financial services regulator, has confirmed that it will increase 2017 license fees paid by firms by about two percent.
The increase in fees will take effect from January 1, 2017.
The Commission will also implement changes to the fee structure for the insurance sector. The changes follow work with representatives of the Guernsey International Insurance Association (GIIA) to determine whether an alternative approach could be taken to the allocation of fees across the insurance sector while continuing to deliver proportionate and credible regulation.
With the support of its membership, GIIA proposed a restructuring of fees that would see international commercial general insurers and reinsurers bearing a greater portion of fees relative to other types of insurer who may take up less regulatory resources.
In particular, it was proposed that Insurance Linked Securities (ILS) business, which is fully collateralized and therefore presents a lower regulatory risk, should bear a lower proportion of the fees to reflect that reduced risk.
The Commission consulted on the proposal and, although not all respondents supported it, the Commission has decided to implement the changes given that they were developed and promoted by the industry body representing a majority of insurers.
Commission Chairman, Cees Schrauwers, said of the changes: "This is the fifth year in succession in which the Commission has limited fee increases to two percent or less and it is our intention to continue focusing on strong cost control to ensure that future fee increases are set at modest levels with a view to helping our firms remain competitive."
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