Consultation on the new Financial Resources Requirement rules ("FRR rules")

The Guernsey Financial Services Commission is consulting on proposals to introduce new FRR rules for full fiduciary licensees.

Background

The Commission has been working with the Guernsey Association of Trustees (GAT) with the intent of reviewing and updating the FRR as applicable to full fiduciary licensees. Key reasons for the proposed new FRR rules are:

1) to enable Guernsey to meet international standards;

2) to properly address liquidity risk. The current FRR allows tangible fixed assets to be used towards the FRR calculation and therefore does not assist liquidity risk management.

3) to introduce a new stand-alone and self-contained piece of legislation for the FRR which should provide more clarity on the FRR calculation.

Consultation Process

Copies of the proposed new FRR rules will be circulated to full fiduciary licensees and other parties likely to be affected by the rules. The draft rules are also available upon request by emailing Fiduciary&[email protected]

The Consultation Process will close on 19 June 2017.

Comments and Enquiries

Comments and enquiries on these proposals may be sent to Fiduciary&[email protected]