Finance regulator looking to impose above-RPI fee increase

FINANCIAL services firms in the island are facing an above-inflation fee increase for next year – in part so the Guernsey Financial Services Commission can pay staff more, to try to hang on to them.


The regulator saw staff turnover of more than 20% last year, following 16% the year before.

It blamed a number of issues, including staff being offered higher salaries by the local industry, travel costs for those recruited directly from the UK wanting to visit friends and family, and high housing costs.

It is putting forward an overall 9% increase for regulated firms for 2023. It has opened consultation on the proposal which will run until mid-September.

In prior years, the commission has sought to contain its fee increases – over the past eight years they have averaged 2.25%. But it said it needed to retain a strong team, with an impending inspection from European anti-money laundering regulator Moneyval now little more than a year away.

‘We are reluctant to ask for this increase at a time when we are fully aware that industry too is susceptible to inflation,’ said commission chairman Julian Winser.

‘However, the commission is playing catch-up, particularly in respect of finance industry salaries, combined with a shortage of suitable candidates to fill our significant number of vacancies.

‘Our focus continues to be on enabling the best possible outcome for the Moneyval inspection.’

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