Preparation leads Guernsey to regulatory success
Guernsey’s forward-thinking approach to international regulatory requirements has aided the success of its funds industry and raising its profile as an international finance centre, according to a panel discussion at the Guernsey Funds Masterclass in London.
Panellists discussed the implementation of regulations like such as the Alternative Investment Fund Managers Directive (AIFMD), the Markets in Financial Instruments Directive (MiFID) II and the Foreign Account Tax Compliance Act (FATCA).
Emma Bailey, director of the Guernsey Financial Services Commission (GFSC) and a panellist at the event, praised the diverse skill-set based on the island, saying: “We have a whole range of skills. We’re not just policy makers, we’re not just sitting at the policy end looking at these directives.”
“We know our industry, and we know the impact it has on a lot of other industries as well, and that is because we’re so integrated globally; our domestic market is very small.”
As the GFSC strives to market Guernsey as an international finance centre, firms on the island benefit from its innovative approaches to global regulation.
Panellist Steve Darrington, partner and CFO at Phoenix Equity, said: “Guernsey’s need to demonstrate itself as a credible regulatory regime causes people who operate in Guernsey for any reason to be sucked in to that regulatory regime. It does make people better positioned and better organised, and that is a genuine positive.”
Other panellists echoed the praise for Guernsey’s management of the changing regulatory environment.
Debbie Anthony, tax partner at Deloitte, said: “[Guernsey] has got its guidelines and its reporting up and running. It has continually been in the lead in this, and I do think that’s incredibly impressive.”
Managing director of Investec, Grant Cameron, added: “It’s inevitable that transparency and full disclosure is here to stay, and I think Guernsey has made the right approach and made the right decisions around it.”
As well as a proactive approach and timely response to regulations, Dominic Wheatley, CEO of Guernsey Finance, believes that Guernsey’s positioning has helped, as well as its relationships with European authorities.
He said: “The Guernsey model maintains access to the EU, but also offers a non-AIFMD product for non-EU investors who don’t like the cost and compliance burden associated with AIFMD.”
“Our early and proactive engagement with Brussels on AIFMD and MiFID II demonstrates the responsiveness of our funds sector and has garnered a great deal of respect with authorities such as the European Securities and Markets Authority.”
He added: “Our approach to these issues follows our established pattern of clarity and transparency of purpose allied with excellence and pragmatism in execution. This helps everyone know exactly where we stand and makes implementation as smooth as possible for the industry.”
