Implementation of Guernsey Financial Advice Standards ("GFAS")

During July 2014 the Commission released its second consultation on the proposed revisions to the regulatory regime on the implementation of the new Guernsey Financial Advice Standards (“GFAS”).  

The implementation of GFAS will increase professional standards, make adviser charging more transparent and reduce potential conflicts of interest.  In turn this will contribute to the protection of the public against financial loss due to potential dishonesty, incompetence or malpractice by persons carrying on finance business.

The Commission would like to thank everyone who took the opportunity to respond to the Consultation Paper.  

A feedback paper on the consultation has been released detailing the representations received, the Commission’s response to those representations and links to the rules and codes which have been approved by the Commission and are to be effective from 1 January 2015 for investment, insurance intermediary and insurance manager licensees.  These are as follows:

• The Licensees (Conduct of Business) Rules 2014 

• The Insurance Intermediaries (Conduct of Business Rules) 2014

• The Insurance Managers (Conduct of Business) Rules 2014 

• The Code of Conduct for Financial Advisers

• The Code of Conduct for Authorised Insurance Representatives

In addition the following rules and code will be repealed with effect from 1 January 2015: 

• the Licensees (Conduct of Business) Rules, 2009 issued under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended (“POI Law”); and

• the Conduct of Business Rules and the Code of Conduct for Authorised Insurance Representatives (“AIRs”) issued under The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, as amended (“the IMIIL”). 

The Commission has also issued a Guidance Note on Training and Competency Schemes to assist investment and insurance intermediary licensees to design and implement such a scheme to meet the requirements of the conduct of business rules.

In addition the Commission has issued a Table of Acceptable Qualifications for Financial Advisers which includes two additional acceptable qualifications to that appended to the second consultation paper.  These additional qualifications are:

• IFS School of Finance Level 6 Diploma in Financial Advice (Adv Dipfa)

• University of Northampton BSc Banking and Financial Planning