Wednesday 27 March 2013
The Commerce and Employment Department has released the summary of responses to the Retail Distribution Review (RDR) consultation and has proposed new "Guernsey's Financial Advice Standards" (GFAS) relating to financial advice in Guernsey.
Deputy Kevin Stewart, Minister for Commerce and Employment Department said:
"We are grateful to those who have taken the time to consider the proposals regarding RDR and send in their comments. The introduction of some form of RDR compliant regime in Guernsey was met with significant support from industry and consumers alike with most responding that a "lighter" version of RDR, should be introduced locally. It is now proposed that the Guernsey's Financial Advice Standards (GFAS) should be introduced by the GFSC with the aim of these being effective in 2015.
"The Department believes this approach would protect and enhance Guernsey's reputation as a leading International Financial Centre; provide better value service from more professional advisers and a more transparent fee structure - all of which would benefit consumers."
The main proposals Commerce and Employment are making in light of the consultation are that Guernsey should introduce "GFAS" which will contain the following key areas:
1. Educational requirements: licensed financial services businesses which offer financial advice to retail clients should be compliant with FSA level 4.
2. Remuneration for providers: both commissions (but requiring full disclosure) and fees will be allowed.
3. Definition of financial advice and capital requirements: It is proposed that some categorisation of advice should be introduced and the actual categories should be a matter for the GSFC to determine in conjunction with industry.
