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GFSC publish a statement on discretionary financial penalties


The GFSC have published a statement regarding discretionary financial penalties, and how they intend to use their current fining powers, rather than their historic powers, in all cases where wrongdoing occurred after 13 November 2017.

With MONEYVAL's visit rapidly approaching, and the "user pays" comment concerning enforcement action, contained within the 2022 Consultation Paper on Fees, it is only a matter of time until we start to see fines imposed under these increased fining powers.

You can read the statement here, which includes a link to the discretionary financial penalties schedule, where you can remind yourself of the financial penalty bandings and characteristics.

Or read what they say here

  • As we have worked on some current enforcement matters, it has become apparent to us that we will be taking some cases forward seeking pecuniary sanctions where there is some wrongdoing before 13th November 2017 and some wrongdoing after 13th November 2017. 
  • Our intent in relation to such matters is not clearly covered by the Guidance Note on the Commission’s general approach to Enforcement issued in January 2019. 
  • Having regard to the fact that The Financial Services Commission (Bailiwick of Guernsey) (Amendment) Law, 2016 makes no explicit provision for transitional provisions, we believe it is now appropriate for us to use our current, rather than our historic fining powers, in all cases which involve any wrongdoing which occurred after 13th November 2017. 
  • This will be done in accordance with the discretionary financial penalties schedule we have previously published. Financial Penalties - Schedule.pdf