2016 Annual Report and Financial Statements

The Commission has today published its 2016 annual report and financial statements.

Amongst the key themes explored in this year’s report is the role of boards and Non-Executive Directors, their responsibilities for assessing and controlling the risks faced by their firms as well as the importance of establishing and maintaining appropriate governance arrangements.

The report also highlights the significant level of policy work which the Commission has undertaken during 2016. Director General, William Mason said:

"Alongside the States and industry, we put a huge amount of effort into policy development in 2016. In terms of the policy initiatives which we took and brought to fruition within the year, we launched the Manager Led Product and the Private Investment Fund regimes, both major new products which we hope will help maintain the Bailiwick’s reputation as an innovative jurisdiction for funds."

During 2016, the Commission was also asked by the States to lead on the development of new policy proposals for pensions regulation; an area which has broad support from industry. Interim proposals were debated by the States earlier this week. The Commission was also pleased to be able to provide support to the States of Guernsey in its early planning following the Brexit vote and continues to play its part in promoting Guernsey’s interests in various international regulatory fora.

Also in 2016, the Commission continued to develop and consult on draft proposals for the regulation of lending, credit and finance which, if implemented, will help to improve the level of protection for consumers. It is anticipated that a Consultation Paper will be issued later in 2017.

In relation to the financial outturn for 2016, the Commission achieved a modest operating surplus of £632k. However, this is set against the Commission’s overall financial position which, as a direct result of the application of the widely criticised Financial Reporting Standard 102 (FRS 102), saw its reserves exhausted. While total employment costs were up on those of 2015, this was principally due to fewer unfilled vacancies in 2016 and a pay rise (totalling c.1.5% of total staff pay) awarded to some staff on a performance-related basis.

To view the document, please click here.