‘Power should be returned to GFSC to set own fees’
THE power to set its own fees should be returned to the Guernsey Financial Services Commission, says its chairman.
Cees Schrauwers highlighted how the States decided to remove the GFSC’s ability to set its own fees in 2014 as he warned it was increasingly clear additional resources were needed in the near future to keep on top of ‘ever increasing regulatory demands’.
There was also the need to respond appropriately to new challenges and opportunities as they arose, and continue to assist the States with policy initiatives to protect and maintain the finance industry.
‘Over the last nine years the commission has continued to demonstrate a responsible approach to budgetary management, with average annual fee increases over the period 2012-2020 being just above 1% compared to inflation over that period averaging above 2%,’ said Mr Schrauwers.
‘At the same time, the commission has taken difficult decisions over that same period, for example, removing the defined benefit pension scheme for its staff in favour of a money purchase scheme, performance-related pay increases for its staff – with no increases in two of those years – and keeping a strict control on the number of permanent staff employed.
‘It would be good for the international standing of the Bailiwick if the commission’s fee-making powers were to be returned to the commission, as has been recommended by a former IMF assessor, Ian Towers, in his report to government in 2017 and again, more recently in 2019, by the assessor appointed by the International Association of Insurance Supervisors.’
