Guernsey Confirmed As A Leader In Financial Stability

by Amanda Banks, Tax-News.com, London

09 November 2011

The Guernsey authorities have welcomed a report commissioned for the recent G20 summit which recognizes that the jurisdiction has demonstrated strong adherence to international co-operation and information exchange.

The report, prepared by the Financial Stability Board (FSB), is in response to a request from G20 leaders in April 2009 that the FSB develop a toolbox of measures to promote adherence by jurisdictions to prudential standards.

Guernsey was included in the FSB’s initial pool of 60 jurisdictions for evaluation as it ranks highly in terms of its importance to the global financial infrastructure. Jurisdictions have been ranked into three tiers – those which can demonstrate "a strong commitment to financial stability", those making steady progress, and those which need to do more. Guernsey was ranked within the first tier.

The conclusions were based on a detailed assessment of evidence compiled by the International Monetary Fund, the World Bank and the International Organization of Security Commissions.

Lyndon Trott, the Chief Minister of Guernsey, welcomed Guernsey's placement, stating: “This is further recognition of the excellence of Guernsey’s robust regulatory framework, our commitment to information exchange and transparency, and our global reputation as a co-operative jurisdiction. It once again highlights that Guernsey plays a leading role in protecting financial stability through the full and effective implementation of international standards.”

Richard Walker, the Guernsey Financial Services Commission’s Director of Policy and International Affairs commented: “The Commission has long believed in the importance of effective cooperation and information exchange. Supervision of firms operating across borders can only be effective when supervisors are talking to each other. The legislation we administer and what we do in practice in relation to cooperation and information exchange has been evaluated several times over the last thirteen years. It is pleasing that the Financial Stability Board also recognizes that Guernsey strongly adheres to the international standards in these areas in relation to banking, insurance and securities supervision.”

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