Guernsey Authorities Seek Feedback On Prevention Of Market Abuse

by Jason Gorringe, for LawAndTax-News.com, London

03 May 2006

Guernsey's Commerce and Employment Department late last month issued a Briefing Paper setting out its intention to bring forward proposals for the introduction of legislation to promote competition and prevent market abuse.

The proposals are based on the recommendations in the Report of the Competition Working Party, which was also recently issued.

The proposed measures are:

• To bring into force legislation to give the States legal powers to investigate, publish reports and take sanctions against abuses of market dominance and anticompetitive behaviour;
• To enable the States to direct which market sectors are subject to investigation under the legislation in order to contain annual costs to not more than GBP300,000;
• To investigate whether or not additional areas of the energy market, and specifically gas and the importation of bulk fuels, should be brought within the Regulation of Utilities Law; and
• To put in place legislation to control mergers and acquisitions but not to bring that legislation into force for the time being.

Deputy Stuart Falla, Minister, Commerce and Employment Department announced that:

"Whilst feedback on the proposals is being invited a full consultation exercise is not being undertaken as the Department considers that this has already been done by the Working Party."

"The Department is keen to get an indication as to whether or not there is broad support for the approach proposed. If this were the case the Department would hope to submit detailed proposals to the July States meeting. If this is not the case then the Department may have to think again."

Feedback on the proposed approach is invited until May 19.

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