In July 2022, the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (the “Law”) was approved by the States of Guernsey, the States of Alderney and the Chief Pleas of Sark. A Commencement Ordinance, passed last Friday, confirmed that the Law will come into effect in two stages.
Various provisions come into effect from 1 January 2023 which will allow the Commission to put in place its own Rules and guidance, and to invite applications for licensing. The Law will then come into full effect from 1 July 2023.
The new Law covers several different areas:
- it introduces consumer protection and the regulation of credit provision and home finance across the Bailiwick for the first time;
- it replaces the existing registration regime for non-regulated financial services businesses (“NRFSBs”), with licensing and regulation requirements;
- it introduces the regulation of virtual asset service providers (“VASPs”) which brings the Bailiwick into line with international standards; and
- finally, it requires peer to peer and crowdfunding platforms in the Bailiwick to be licensed and regulated.
More information regarding the purpose and scope of the Law, and what it will mean for individuals and firms conducting activities covered by the Law, as well as consumers in the Bailiwick, can be found on our website.
The Commission is currently working through the responses to its Consultation Paper on its Rules and approach for regulating the sectors covered by the Law. The Commission will issue a feedback paper, together with the finalised Rules and guidance, a list of exemptions from the requirement to apply for and hold a licence, and frequently asked questions. This is intended to be published by the end of January 2023.
Information on the application process will be published alongside the final Rules, and the licence application window will open at that time. Early submissions will be encouraged with discounted application fees, to allow applications to be processed ahead of the commencement of the Law. From 1 July 2023, firms without a licence may not operate until the appropriate licence is in place.
Should you have any questions in the meantime, please contact the Lending, Credit and Finance team by email at [email protected].
This news item was originally published by the Guernsey Financial Services Commission (GFSC GG). For more information, see the Source Link.