Wednesday 05 June 2013
The Scrutiny Committee is cautiously optimistic about the launch by the Commerce and Employment Department of a review into the legal framework governing financial services regulation.
The Committee is engaged in its own review into 'Who "Regulates" the Financial Services Regulator?' which considers the relationship between the States of Guernsey - represented by Commerce and Employment and the Policy Council - and the financial services regulator - the Guernsey Financial Services Commission (GFSC).
Scrutiny's review focuses on the role of government and its relationship with the financial services regulator while the purpose of Commerce and Employment's review is to reform the legal framework governing the GFSC. The one would appear to necessarily include the other. Commerce and Employment has issued a discussion paper seeking feedback on the Department's proposals for the future of financial services regulation in Guernsey. The discussion paper also explains that in addition to the Commerce and Employment review, the GFSC is working with the Department on a consolidation of the regulatory laws, and that a finance sector strategy will be released later this year.
Scrutiny Committee Chairman, Alderney Representative Paul Arditti, said:
"Although these developments emerge five years after the government and regulator agreed a protocol for the proper guidance and direction of the GFSC by Commerce and Employment and the Policy Council, and just five months after Scrutiny announced that an investigation in to the absence of adequate guidance and control had been added to its forward work programme, the Committee‟s view is „better late than never‟."
"The Committee is satisfied that Commerce and Employment‟s review has the potential to address some of the issues we have identified."
"The Committee is keen to avoid wastage of public funds from any duplication of effort and has therefore resolved to validate the valuable evidence it has gathered from the finance industry before handing such evidence as we can to Commerce and Employment, to better inform their review. We shall then suspend our own review whilst C&E undertake their own investigation."
"Given the five-year delay, we have to assume that nothing would have happened without the Scrutiny investigation and therefore we will keep this investigation open to ensure that the Department does the job they have said they will do and that all the issues are addressed."
-ENDS-
