We are committed to using technology and supporting the use of technology by industry that improves efficiency and effectiveness.
As William Mason, Director General, told the 350-strong audience at Finovation: The Guernsey Edge in September 2024, “For Guernsey to keep its place as a leading international finance centre, we must be both open to technology and we must also be inquiring – understanding the limitations and risks associated with it.”
Historically, the Commission has used technology internally to ensure it can continue to meet its regulatory remit in an efficient and effective manner. This led to the development of our online portals, for regulatory return submissions and personal questionnaires as part of our risk-based approach, and more recently the development of our new Applications and Authorisations Portal.
Given our commitment to ensuring the Bailiwick is appropriately positioned internationally as an attractive hub for business, we have set up an ongoing programme to look at how we can use technology to improve our effectiveness as a regulator and how we best supervise firms that are utilising new technologies, such as those that enhance regulatory and compliance processes (RegTech). This has led to the creation of two technology-focused units within the Commission – a Technology Innovation Unit and a Technology Supervision Unit. More information on both units can be found below.
The Commission’s use of technology
For the Commission to supervise the financial services industry efficiently and effectively, we rely on an experienced team of in-house IT professionals who keep track of the latest IT developments. They maintain and enhance our IT infrastructure, ensuring that our systems and support are aligned with the work required. This enables our supervisory and other staff to have the right tools to carry out their roles. Moreover, our IT team plays a crucial role in safeguarding the Commission against ever-evolving cyber security threats, providing an in-house ability to deal with emerging issues and risks.
Three-year business plan
Through the Commission’s three-year business plan, we have, and continue to, undertake long term technology projects, such as:
- Early Warning System
Our Early Warning System (EWS) first introduced in 2022 and later enhanced, uses machine learning techniques to analyse certain risk characteristics and patterns of concern to support the supervisory process and augment supervisory awareness of low-impact entities. The EWS has also delivered efficiency savings, reducing the time taken for supervisors to review specific documents submitted to the Commission by licensees. Furthermore, through its advanced analytics and visualisations, supervisors have been able to interrogate entity data to a greater depth and in a more intuitive manner than was previously possible, allowing for richer insights on the firms that we supervise and their inter-connectedness. Internationally, the EWS has garnered significant interest from other regulatory authorities. The Commission welcomes enquiries from other regulators wishing to learn more about the system.
- Applications and Authorisations Portal
Throughout 2024 and into 2025, we have been developing a new front of house portal (the Applications and Authorisations Portal) for the submission, review and approval of applications to the Commission. The new portal, which has been in alpha testing with a select group of industry firms since November 2024 is due for a beta release launch with some of the most commonly used applications, including fast track funds and change control requests in April 2025. The new portal will streamline the applications and authorisations process and make it easier for people to start financial services business in the Bailiwick.
Within our three-year business plan, we have identified two separate areas of work for technology. The first is how do we utilise these new areas of technology ourselves and the second is how do we supervise firms that are utilising more advanced technology or Regtech. The Technology Innovation Unit is tasked with dealing with the first area with the second sitting under the Technology Supervision Unit.
More information about the Commission’s three-year business plan and how we are using technology can be found in our annual reports.
Our supervisory approach to technology
In the past, regulators have adopted a technology neutral stance, allowing a firm to embrace whichever technological solution(s) it deems appropriate to meet its obligations. Our view is that the most recent technological developments provide a strong opportunity for Guernsey firms to continue to provide advanced services to the clients in a more efficient and effective manner.
Technology Innovation Unit
Building on the Commission’s development of its Early Warning System, which assists supervisors in identifying smaller entities that are displaying certain patterns of possible concern, and the new Applications and Authorisations Portal, the Technology Innovation Unit has a continued focus on ensuring that the Commission is piloting, developing and using newer technologies such as artificial intelligence to optimise operational effectiveness and efficiency.
Technology Supervision Unit
The Technology Supervision Unit provides technological support, resource and advice to the Banking and Insurance, Investment, Fiduciary and Pensions, Financial Crime, and Authorisations and Innovation Divisions. The team supports the supervision of firms within industry as well as policy development with a focus on understanding licensees’ use of newer technologies, such as artificial intelligence, blockchain, compliance screening systems and cyber security systems, as well as data management tools and systems architecture.