GFSC increases licence fees by 5.3% despite concerns

The Guernsey Financial Services Commission confirmed the increase following a four-week consultation exercise it carried out in September.

At that time it proposed an overall increase in fees of 5.3%; an increase in fees for retail general insurers to recognise the additional supervisory effort required to mitigate the risks, including reputational, they pose to the Bailiwick; the creation of a specific authorisation fee for an entity that is looking to apply to operate an investment exchange; and a rationalisation of fee regulations.

It said it had received feedback from all sectors of industry, but primarily on the overall fee increase, where some respondents were concerned about cost pressures on the industry. They said that an increase in fees would drive up costs and have a negative impact on competitiveness, especially in the fiduciary sector, already experiencing little growth.

One respondent suggested that a below-inflation increase could have been introduced, which could have been increased once the island’s Moneyval report had been published.

‘In order to remain a jurisdiction of choice, where people choose to do business, we must continue to invest in our people, and in technology.

‘In 2025, we look forward to launching our new applications and authorisations portal which will revolutionise the applications and authorisations process and make it significantly easier for people to start financial services businesses in the Bailiwick,’ said GFSC director-general William Mason.

Another highlighted the commission’s plans to extend its offices while other firms were reducing their floorplate to cut costs.

But the commission said it believed it was more productive when working together, and its new office space would allow it to deliver more in-house training sessions to industry.

‘We have carefully considered the feedback received.

‘We understand that the finance industry, like us, has been impacted by higher inflation in recent years, and the challenges to retain existing business as well as bring new business to the island,’ said commission chairman John Aspden.

‘We need to balance this with the need to retain and attract skilled and experienced staff to maintain good quality, proportionate regulation to international standards within the Bailiwick, while also being cognisant of what the recommendations from the 2024 Moneyval inspection will require.’

Last year the GFSC received £16.6m. in fee income and made an operating surplus of £181,000.