Digital innovations could help island lead the way
GUERNSEY could lead the way in the regulation of some innovative digital developments in financial services – if the local industry wants it.
The Guernsey Financial Services Commission has proposed a number of potential innovations as part of its new lending, credit and finance consultation, including issues such as customer due diligence and electronic agents.
Gillian Browning, director of the fiduciary supervision policy and innovations division at the GFSC, pictured, said the move was aimed at giving local business 'an opportunity to innovate, evolve and grow'.
'The commission has sought to create a principles-based regulatory environment which could act as a stimulus for both the innovative business of today and potential finance business of the future – ultimately, we want to see good finance business flourish,' she said.
The commission is already able to offer some regulation for the growing crowdfunding, peer-to-peer and alternative finance sector through its investment division. Now it is proposing a more detailed regime, including electronic loan-based crowdfunding, equity-based crowdfunding, electronic lending platforms and the broad 'alternative finance' sector.
Proposals are also in mind for the broader subject of fintech generally to introduce a regulatory framework capable of accommodating the advances of digital technology and supporting the States' new strategic digital framework.
The commission said that bundling these innovations into the lending, credit and finance law was a move made with efficiency in mind.
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