Guernsey Strengthens Deposit Protection Regime

by Jason Gorringe, Tax-News.com, London

15 June 2011

Guernsey's Financial Services Commission and the group appointed to oversee the Banking Deposit Compensation Scheme have signed a Memorandum of Understanding to share information to ensure their respective duties can be performed more effectively.

The MoU provides for the exchange of information about island banks and depositors on a bilateral basis and sets out a framework for the exchange of information relating to depositors and banks licensed by the Commission to take deposits in the Bailiwick, who are all required to participate in the scheme.

The memorandum establishes a formal basis for co-operation in order that the parties’ respective duties can be performed effectively in compliance with the Financial Services Commission (Bailiwick of Guernsey) Law 1987, the Banking Supervision (Bailiwick of Guernsey) Law 1994 and the Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance 2008.

Co-signatory Nik van Leuven, Director General of the Commission, said: “This development reflects the fact that, while each party is operationally-independent and has distinct functions, we both need to co-operate and communicate constructively with each other in order to carry out our respective functions effectively.”

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