Regulation of Fiduciaries – Legislation Approved

Regulated Activities
Exempted Activities
Exemptions and Regulations
Appeals

The States of Guernsey (the island's Parliament) has approved legislation regulating fiduciaries. Following consultation with the finance industry, the legislation incorporates a number of further amendments. The legislation is now awaiting royal assent.

Regulated Activities

Regulated activities now specifically include advice on the formation, management and administration of trusts and companies.

The holder of a personal fiduciary licence is now permitted to act as personal representative of a deceased person's estate as well as acting as trustee.

Exempted Activities

A number of further exemptions have been introduced:

• Individuals may hold up to six directorships without requiring to be licensed. However, the Guernsey Financial Services Commission (GFSC) can disapply this exemption in individual cases where it considers that an individual is not fit and proper;
  
  
• Members of the Institute or Faculty of Actuaries may now also draft and give advice on the formation of pension schemes; and
  
  
• Regulated insurance intermediaries may advise on occupational pension schemes, retirement annuity trusts and the creation of trusts of life policies.

Further exemptions include:

• activities which are incidental to non-regulated activities, provided that these are undertaken without separate remuneration;
  
  
• the provision of an address for service under a contract; and
  
  
• activities already regulated under existing regulatory legislation.

Exemptions and Regulations

The Advisory and Finance Committee of the States of Guernsey for the Bailiwick of Guernsey (including Alderney and Sark) will be responsible for adding or restricting exempted activities and making regulations. However, these activities will only be carried out after consultation with Sark's General Purposes and Advisory Committee and the Alderney Policy and Finance Committee.

Appeals

The rights of appeal have been widened considerably.

The GFSC agreed that the rights of appeal against its decisions should extend not only to licensing decisions, such as the refusal or revocation of a fiduciary licence, but also to other decisions, such as the service of a notice requiring information or documents and the appointment of an inspector.

The GFSC also agreed that irrespective of whether an appeal is made against its decisions, it should, on request, give written reasons for decisions against which there is a right of appeal.

For further information on this topic please contact Sean Cheong or Ian Kirk at Collas Day by telephone (+44 1481 723 191) or by fax (+44 1481 711 880) or by e-mail ([email protected] or [email protected]).
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