Successful Take-Up For Fiduciary Licences Under New Law Says Guernsey Financial Services Commission

by Amanda Banks, Tax-news.com, London

06 June 2001

According to the Guernsey Financial Services Commission (GFSC) the application process for fiduciary licences under The Regulation of Fiduciaries, Administration Businesses and Company Directors Law, 2000 (which came into effect on 1 April, 2001) has been a great success.

The GFSC has received 179 applications for a Full Fiduciary Licence (covering in excess of 800 business entities) before the deadline of 31 May, 2001. In addition, the Commission received 70 applications for the restricted category of a Personal Fiduciary Licence, and a further 40 applications for the grant of a discretionary exemption, bringing the total number of applications to 289.

But it looked at one point last week that many fiduciaries may miss the deadline. Although the GFSC embarked on an extensive advertising campaign over recent months, a report from last week's Guernsey Press news service revealed that people were contacting the Commission just the day before the deadline requesting more information on the law. Talmai Morgan, director of fiduciary services and enforcement told the Guernsey Press: 'It's quite extraordinary. It almost makes you think of Rip Van Winkle, that people have been going to sleep, when you think of the publicity this whole issue has engendered in the last couple of years. These people apparently don't read the paper, don't listen to the other forms of media. I would seriously say that if applications aren't in by midnight tonight one has to question the competency of an applicant who misses the deadline.'

However, in a statement released by the Commission after the applications were received, a relieved Mr Morgan said: 'The large number of applications clearly shows that the Commission's significant publicity and education drive to make people aware of the Law has been a great success.'

The annual fee for a full fiduciary licence is dependent upon the annual turnover from regulated fiduciary activities. For such a turnover up to £250,000 a licence fee of £2,500 is charged. For turnovers between £250,000 and £1,000,000 a fee of £5,000 is required and for a turnover in excess of £1,000,000 companies can expect to pay £10,500.

The applications will now be processed by the Fiduciary and Enforcement Division of the Commission and decisions relating to the applications will be made in due course. All applicants listed are deemed under the provisions of the Law to be licensed fiduciaries until their applications are finally determined. The GFSC states that, from 1 June, 2001, it is a criminal offence for anyone not licensed by the Commission to provide non-exempted regulated activities (such as trust and company management) within the Bailiwick or to use a Guernsey or Alderney company for such purpose anywhere in the world.

Mr Morgan added: 'The Commission will now process the applications objectively against the criteria stated in the Law. This will be achieved as quickly as possible, consistent with fairness and due process in respect of all applications. The Law has been well engineered to be both efficient and effective and will undoubtedly become a benchmark for other jurisdictions.'

Recommended