Guernsey To Revise Late-Filing Penalties

by Phillip Morton, Investors Offshore.com

12 November 2009

Due to a significant number of finance sector companies filing financial statements and returns late during this fiscal year, the Guernsey Financial Services Commission has decided to revise its penalty system to ensure licensees provide the Commission with timely information.

According to statistics collated by the Commission for 2008 and the first six months of 2009, during the period:

• In the banking sector, two banks were late in filing their 2008 financial statements.
• In the fiduciary sector, 54 of 237 licensees were late in filing financial statements. In addition, 42 licensees were late in filing their 2008 annual returns and 24 were late in filing their 2009 annual returns.
• In the insurance sector, 104 out of 360 licensees were late in filing their combined financial statements and returns. Out of the 87 insurance intermediary returns due in 2008 and the first six months of 2009, 18 were also late.
• In the investment sector, 43 out of 495 licensees were late in filing their 2008 financial statements. Out of 672 collective investment funds, 158 were late in filing their 2008 financial statements.

In view of the significant number of late returns overall, the Commission considers that it should issue automatic, non-discretionary penalties for the late submission of financial statements or annual returns.

The required filing dates are as follows:

• Guernsey incorporated banks must provide audited annual returns every three calendar months.
• Those in the fiduciary sector are required to file annual accounts four calendar months after the end of the fiscal year, and an annual return one calendar month after June 30 each year.
• Insurers must submit four months after the close of the financial year an annual return (including an auditor’s management letter or confirmation that no management letter is issued), audited annual accounts, and (if applicable) actuarial report.
• Insurance managers and insurance intermediaries are required to file six calendar months after the close of financial year an annual return, annual accounts (audited unless this requirement has been waived), and (if applicable) an auditor’s management letter.
• Investment licensees will be required to file four months after the close of financial year, audited annual accounts and a compliance return once the new Conduct of Business Rules 2009 come into force (planned for January 1, 2010).
• Investment exchange companies are required to file three months after the close of financial year an audited annual accounts.

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