William Mason, the long-serving director-general of the Guernsey Financial Services Commission, set out a new, pragmatic regulatory agenda, putting economic prosperity and long-term financial stability ahead of precaution, or what he called ‘the stability of the graveyard’.
He said regulators who sought to eliminate all risk ultimately made jurisdictions poorer and less resilient.
‘I have been concerned at the impact which over-regulation can have on productivity, growth and the general wellbeing of the population,’ Mr Mason said.
‘The Bailiwick should be guided by common sense and a high regard for individual freedom, rather than the precautionary principle.
‘We want to be the regulator of the alive, the innovating, the growing and the prospering.
‘Risks don’t always work out, of course. Hopefully with sensible governance at entities taking risks – risks taken will work out more often than not, making the jurisdiction and its people better off.’
In the speech to a conference organised by Step, the Society of Trust and Estate Practitioners, Mr Mason also reinforced the island’s consistent positioning on sustainable finance, and the commission’s relatively recent embracing of digital finance business.
‘The commission is suggesting that large parts of the financial services sector cannot afford not to adapt themselves to cope with the new technologies if they are to continue to be commercially competitive,’ he said.
‘The Bailiwick laws need to support rather than hinder them in this endeavour.’
The approach has been welcomed by the lead industry group and the politician responsible for the finance industry.
Deputy Hayley Camp said Economic Development Committee was pleased to see that the GFSC’s plans align with its vision and looked forward to working closely with the regulator to achieve it.
‘We are determined to ensure that finance remains a sector where there is room for economic growth and innovation,’ she said.
‘To achieve this we must ensure we think carefully about the island’s approach and tolerance to risk, and ensure that we do not regulate the sector into obscurity. New developments in finance such as digital assets are areas of opportunity, but equally, the more traditional financial services will always have an important role to play in our island’s economy. Guernsey has always innovated at the cutting edge of financial services and we want to see that continue so the industry can prosper into the future.’
Jo Peacegood, chairwoman of the Guernsey International Business Association, called the speech ‘encouraging’.
‘Alongside the Oliver Wyman review [commissioned by Economic Development and part-funded by industry], these initiatives will help identify opportunities to diversify the sector, strengthen Guernsey’s competitiveness and attract new markets.’
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