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Guernsey Mind and Management Requirements for the Fiduciary and Investment Sectors - 10 June 2022.

05/07/2022

Following completion of its consultation [Closed 21 Mar 2022 Opened 7 Feb 2022] on mind and management requirements for the Fiduciary and Investment sectors, the Commission has issued updated consolidated versions of the Fiduciary Rules and Guidance, 2021 and the Licensees (Conduct of Business) Rules and Guidance, 2021.

  1. Both sets of Rules have been amended
  2. Also, a new rule requires fiduciary and investment licensees (excluding investment licensees which another firm in the Bailiwick administers) to appoint an appropriate number of Bailiwick-based senior executives as is commensurate with the nature, size and complexity of the licensee’s activities in the Bailiwick.

A feedback statement on the consultation has also been published and can be found here.

After taking into account comments received during the consultation, the relevant rules are to be amended as follows:

The Licensees (Conduct of Business) Rules and Guidance, 2021

A new rule 2.1(8) is to be added as follows:

(8)        The board of a licensee, other than a licensee administered by another firm in the Bailiwick, must appoint such number of Bailiwick-based senior executives as is commensurate with the nature, size and complexity of the licensee’s activities in the Bailiwick, and the prudent conduct of its business.

In rule 13.1(2) the following definition will be added:

“Senior executives” means the chief executive and persons holding a supervised role exercising day-to-day managerial functions of the licensee;

The Fiduciary Rules and Guidance, 2021

A new rule 2.1.2 (2) (d) is to be added as follows:

(2)        The Board of a licensed fiduciary –

(d)        must appoint such number of Bailiwick-based senior executives as is commensurate with the nature, size and complexity of the licensed fiduciary’s activities in the Bailiwick, and the prudent conduct of its business.

In rule 6.1(2) the following definition will be added:

“Senior executives” means the chief executive and persons holding a supervised role exercising day-to-day managerial functions of the licensee;

The amendments to the Rules will be effective from 10 June 2022.

The new rules will come into operation on 10 June 2022.

Copies of both sets of Rules and Guidance can be found at the following links:

GUERNSEY