Guernsey FSC Expansion Adds To Costs

by Jason Gorringe, Tax-News.com, London

12 May 2003

The Guernsey Financial Services Commission is having to take on extra staff and expand into new premises to keep pace with regulatory developments in the global finance industry.

At the end of March this year, the commission employed 79 people and this is expected to increase to around 100 by the end of 2003. This has inevitably led to an increase in costs for the Commission which in turn has led to an increase in fees for the finance sector.

Director General of the commission Peter Neville, comments in the FSC's 2003 report that whilst fees are kept to a minimum, increases cannot be avoided as the commission aims to maintain half the value of annual expenditure in reserve.

Neville stressed that Guernsey reputation as a well regulated financial centre must be maintained, especially in the light of the IMF visit to the jurisdiction last November.

"As always, the FSC will meet international standards while taking account of the effects of doing so on the firms we regulate," commented Mr. Neville.

However, he pointed out that creating a strong culture of compliance within the financial industry would limit the need for outside scrutiny of firms' affairs.

"One particular matter highlighted by the IMF visit is that of corporate governance," explained Mr. Neville, continung: "An essential condition for reducing the degree of regulatory intrusion to a minimum is industry’s continued commitment to compliance - traditionally strong in Guernsey - and the achievement by regulated firms of good standards of corporate governance."

Recommended