GFSC fee rise less than expected

Monday 27 November 2023

The Guernsey Financial Services Commission is putting its licence fees up by 6.3% from January, but that is 1% less than the figure it had consulted businesses on.

The Commission had suggested a fee rise of 7.3% from 1 January 2024 but Chairman Julian Winser said they went with a lower rise after taking on board feedback from the consultation process.

Pictured: The GFSC issued a consultation paper in July, with the above proposals.

The GFSC said "it is fair to say that, given the current inflationary environment, there was little opposition to the Commission’s proposed increases".

It explained that, since its consultation paper was issued, a more recent inflation figure has been released by the States of Guernsey showing a small decrease in the overall rate of inflation to 7% RPI for the Bailiwick.

Speaking about the proposals, the Commission’s Chairman, Julian Winser, said that taking into account both its anticipated funding needs in the next year, the state of its reserves, its likely 2023 end year financial outturn, and the likely economic environment in 2024, the Commission decided to proceed with an increase lower than that upon which it originally consulted.

“We are aware of the pressures on industry from both cost inflation and a competitive labour market and as such we are proceeding with an overall fee increase of slightly less than inflation," he said.

"In doing so, the Commission aims through 2024 to use reserves to cover some portion of its ongoing costs, including our technology investment programme. We are conscious however, that there are a range of uncertainties in 2024 including economic headwinds in the UK and the need for the Commission to respond to the outcome of the MONEYVAL evaluation. We also need this fee increase in order for the Commission to retain and recruit skilled and experienced staff to maintain good quality, proportionate regulation to international standards within the Bailiwick."