Tuesday 15 April 2014
A consultation response document in relation to proposed changes to the Registration of Non-Regulated Financial Services Businesses Law and Payment Services Providers has been released by the Commerce and Employment Department.
A consultation was launched in 2013 after the Department was approached about a series of discussions regarding the possibility of establishing PSPs in Guernsey. A PSP is basically any entity which provides a service whereby a financial transaction (normally payment of money) can be settled between one individual or entity and another. Entities which carry out such services would normally include banks, but increasingly providers can be other entities such as e-money institutions and payment institutions.
The Department concluded that Guernsey has an opportunity to establish itself as a domicile for the establishment of PSPs. Various ways to ensure that PSPs would be appropriately regulated in Guernsey were considered and it was concluded that to have the right legislative and regulatory framework new legislation would be required.
Deputy Kevin Stewart, Minister for Commerce and Employment said:
"It is imperative that Guernsey's financial services industry innovates and embraces emerging business areas such as payment services providers, which facilitate the fast and efficient settling of financial transactions. This is a global market and we intend to work on developing the right local legislation for Guernsey to take advantage of this opportunity. We would like to thank all those that took part in the consultation and we look forward to working together with the GFSC, industry and others in progressing this work."
New policy and associated legislation of PSPs will now form part of the Finance Sector Development Unit's work programme which is published in Commerce and Employment's Business Plan.
For further information please contact the Finance Sector Development Unit, Commerce and Employment Department
