Tim Clipstone Bryon Rees Michelle Watson Bunn James Hewlett October 26 2022 Quarterly funds update: Guernsey Ogier | Corporate Finance/M&A - Guernsey Tim Clipstone, Bryon Rees, Michelle Watson Bunn, James Hewlett Corporate Finance/M&A Guernsey launches natural capital fund regimeGFSC expands green criteria in Guernsey green fund regimeNew anti-greenwashing guidance for investment sectorSustainable finance week showcases Guernsey's commitment to sustainable finance initiativesGFSC consults on fees for 2023Guernsey Finance report identifies roadmap for transition to net zeroConsultation paper launched on Lending, Credit and Finance Law 2022Guernsey launches natural capital fund regimeThe Guernsey Financial Services Commission (GFSC) has launched its natural capital fund framework, which creates a regulatory designation for funds to help channel investment into biodiversity and natural capital projects that make a positive contribution and/or significantly reduce harm to the natural world.The natural capital fund framework will complement Guernsey's existing regulated Guernsey green fund regime, which now channels more than £4.9 billion into green investments. The new framework also marks the completion of a pledge made as part of 2021 United Nations Climate Change Conference (COP26) to extend the commission's regulatory regime to include sustainable funds.GFSC expands green criteria in Guernsey green fund regimeThe commission has expanded the green criteria in the Guernsey green fund regime to include the EU taxonomy for sustainable activities' technical screening criteria for activities contributing to climate change mitigation and adaptation. The new rules and guidance came into effect on 20 September 2022.New anti-greenwashing guidance for investment sectorThe GFSC has published anti-greenwashing guidance for the investment sector to ensure that adequate disclosures are made to investors in respect of any environmental sustainability claims made. The new rules and guidance came into effect on 20 September 2022.Sustainable finance week showcases Guernsey's commitment to sustainable finance initiativesGuernsey hosted its third sustainable finance week, bringing together industry leaders to discuss topics including the race to net zero, biodiversity and energy transition. The three topics were developed in consultation with Guernsey's finance industry as well as sustainable finance global leaders and associations, including the United Nations Development Programme Financial Centres for Sustainability and discussions at COP26. The programme of events included keynote speakers, panel discussions and fringe events.GFSC consults on fees for 2023The GFSC has launched a consultation paper on proposals for increasing the licence fees paid by firms – an overall increase in fees of 9% has been proposed. Other specific proposals to change fees are outlined in the consultation paper and include application and annual fees in respect of firms to be licensed under the lending, credit and finance legislative framework.Guernsey Finance report identifies roadmap for transition to net zeroA new report commissioned by Guernsey Finance, in association with Baringa Partners, identifies the vital role that the financial services industry can play in achieving the transition to a net zero future. The research highlights the opportunities that exist for various financial services industry sectors and outlines a potential roadmap, highlighting key steps spanning the next three decades.The report provides sector-specific guidance that different industries within the financial services sector could follow to support the transition and decarbonise the economy. It outlines key opportunities, risks and mitigations for insurance, investment funds and management, trusts and companies, private banking and pensions.Consultation paper launched on Lending, Credit and Finance Law 2022Following the recent publication of its consultation paper, setting out the draft rules and approach for regulating the sectors covered by the Lending, Credit and Finance (Bailiwick of Guernsey) Law 2022, the GFSC will be hosting a series of meetings with the various sectors which will be affected by the legislation.The purpose of the new law, which was passed by the States of Guernsey on 14 July 2022, is to protect customers in Guernsey who make use of consumer credit in all its forms, including individual loans, home finance and credit for the purchase of goods and services. In addition, the law and accompanying rules cover fintech platforms operating crowdfunding and peer to peer platforms as well as virtual asset service providers.The law will replace the existing Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law 2008.For further information on this topic please contact Tim Clipstone, Bryon Rees, Michelle Watson Bunn or James Hewlett at Ogier by telephone (+1 284 852 7300) or email ([email protected], [email protected], [email protected] or [email protected]). The Ogier website can be accessed at www.ogier.com.