The Guernsey Financial Services Commission wants to significantly increase fees payable by licensed firms and regulated entities in 2022.
It says it is facing higher costs because of evolving international regulatory standards – and that meeting those are vital for the future of the finance sector.
‘The fee increase being proposed is not emblematic of the commission wishing for similarly substantial fee increases in future years,’ said the regulator.
‘Our working assumption is that, having increased fees by this amount in 2022, we should be able to manage with RPI level increases in 2023 and 2024.
‘Clearly if we are asked to do more tasks or we are requested to undertake considerably more extensive work to, for example, become exactly equivalent with a certain overseas regime, then costs may arise which we currently do not anticipate.’
Guernsey had a financial services industry as big as that of many large European countries, noted the commission.
‘Good regulation of an internationally significant international finance centre is never going to be free,’ it said.
‘We trust that industry will take some reassurance from the commission’s current leadership having only levied an average fee increase of 1.2% pa over the last eight years. Going forwards we aspire to only increase fees in accordance with movements in inflation, although we would not wish to falsely promise that we will always be able to do so.’
Feedback to the fees consultation can be provided via the consultation hub section of the GFSC website www.gfsc.gg.
The consultation will be open for eight weeks after which the States of Guernsey and the commission will need to agree any fees increase. These would then come into effect on 1 January 2022.