“Significant vacancies” contribute to GFSC fees consultation

Thursday 21 July 2022

The Guernsey Financial Services Commission has launched a consultation paper on proposals for increasing the licence fees paid by firms. The closing date for responses is Wednesday 14 September.

The Commission is consulting on an overall increase in fees of 9%. Other proposals to change fees are outlined in the consultation paper and include application and annual fees in respect of firms to be licensed under the lending, credit and finance legislative framework.

Previously, the Commission sought to contain its fee increases and over the last eight years fee increases have averaged 2.25% at a time when many comparable regulatory bodies were introducing significantly higher fee increases.

The Commission said that factors behind the consultation included the need to retain staff in a highly competitive market and maintain internal systems to meet international obligations.

The Commission’s Chairman, Julian Winser, said: “We are reluctant to ask for this increase at a time when we are fully aware that industry too is susceptible to inflation. However, the Commission is playing catch-up particularly in respect of finance industry salaries combined with a shortage of suitable candidates to fill our significant number of vacancies.

“Our focus continues to be on enabling the best possible outcome for the Moneyval inspection in early 2024. I do ask industry to bear in mind our costs, and therefore demands on industry fees, remain both below inflation and lower than other comparable financial services regulators.”

You can read the consultation paper in full HERE.