The Guernsey Financial Services Commission (FSC) has set out proposed increases in certain fees payable by licence holders to cover the rising cost of regulation.
It was agreed with stakeholders in 2009 that fee increases, proposed for 2010,
be increased over a two-year period. In line with this, the Guernsey FSC has
published a consultation on proposed increases to fees paid by entities operating
in Guernsey. It is Guernsey policy that departments be self-sustaining, paid
by the concerned regulated entities.
According to the document, fee changes are proposed to have the following effect:
Banking Division: An overall increase of between GBP9,315 and GBP15,981 in
the tariff for annual registrations is proposed for 2011 in order to move further
towards ‘breaking even’ in the Banking Division by the end of 2011.
Insurance Division: An overall increase of between GBP190 and GBP670 in the
tariff for applications for registration and increases of up to GBP2,650 for
annual registrations is proposed for 2011. The increases have been spread proportionately
across fee categories. Even with these increases, a deficit of GBP285,000 is
expected for 2011.
Fiduciary Division: It is proposed to increase the application fee rates uniformly
by up to GBP260. Currently fee rates vary between GBP740 and GBP1,680, with
an additional GBP224 per group applicant. The FSC considered that current fees
do not reflect the level of work involved in processing applications, and has
therefore proposed revising them upward.
Investment Division: Few increases are proposed for entities under the auspices
of the Investment Division. It is proposed to increase some annual fees by variable
amounts as part of a general restructure of fees, 'whilst retaining competitiveness
with comparable jurisdictions'. Many fees will remain unchanged.
Non-Regulated Financial Services Businesses and Prescribed Businesses (PBs): The
Commission proposes revising the current tariff of application and base annual
fee levels of non-regulated financial services businesses upwards for 2011 by
GBP208. For PBs, an increase of GBP115 in the base registration/annual fee and
of GBP17 for each Full-Time Equivalent (FTE) employee is proposed.
In addition, the fee on amalgamations and migrations is set to increase from
GBP1,500 to GBP2,500.
The FSC’s consultation explains that the hikes are necessary to ensure
adequate funding for the island’s regulators, to accommodate for rising
regulatory costs and short-term falls in license numbers.
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