Investment Business Quarterly Statistical Information

Earlier this year the Investment Business Division posted on the Commission website its proposals relating to statistical information forms for consultation.

 

The consultation document made it clear that the Commission gathers these statistics in order to identify specific sectoral trends which may have regulatory consequences, and in order to identify funds which are increasing, or decreasing, in size and usually rapidly. Those data can usefully point to areas of stress both within the investment funds community generally, and also in respect of specific firms.

 

It was also concluded that it would be appropriate for statistical information to be submitted by non-fund licensees, predominantly asset management firms and stockbrokers, and a draft form was prepared for consultation. Historically, the focus of statistics gathered from investment firms has been on the investment fund sector. The Commission recognises that there is a growing number of non-fund firms regulated in Guernsey who are providing services such as asset management and stock broking to clients. The collation of information from these firms will allow the Commission to quantify the scale of those activities and their importance within financial services business generally. Statistical information will also help the Commission identify specific trends. As for the fund sector, the data collated can usefully point to areas of stress both within investment firms generally, and also in respect of specific firms.

 

There was a wide ranging response to the consultation and a significant percentage of the comments received have been incorporated into the forms. Given the volume of responses submitted it has not been possible to provide a line by line response on each comment and the changes made to the forms but rather the purpose of this document is to outline the main themes raised during consultation and changes to the forms that have resulted. Written responses have been provided to each respondent to the Consultation process.

 

The new forms will be implemented with effect from the quarter ended 30 June 2009, that is for the statistical returns due to be submitted to the Commission by the end of July 2009.

 

The consultation document stated that the Commission would review the method of submission of the relevant information in order that firms would be able to submit forms electronically rather than in hard copy form. This is still our intention and it is hoped that substantive progress in that respect is able to be made before the end of this year.

 

The major changes to the final forms as compared with those published for consultation are as follows:

 

 

1. Deadline for submission of forms.

 

As a result of comments received relating to the time required to complete the forms the deadline for submission has been extended to the end of the month following the end of the calendar quarter. This is consistent with the deadline set in respect of the Form AM.

 

2. Guidance Notes for the completion of the Statistical Return Form NST

 

The guidance notes have been expanded in order to provide more information as to the Commission’s expectations of licensees in completing the form.

 

3. GFSC Reference Number of Scheme

 

A large number of respondents asked when this reference number would be available as it has to be stated on the form. The GFSC reference number of each open ended and closed ended collective investment scheme which is authorised or registered under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 is now shown on the Commission’s website. The information can be found by following the link to the Investment section of the Regulated Entities tab shown on the left hand side of the page. The reference number is also stated on the Commission’s letter of authorisation, registration or approval or can be supplied by the Commission on request. We will be writing to licensees confirming the reference numbers for open-ended Non-Guernsey schemes during June.

 

4. Geographic Breakdown

 

The consultation version of the draft form required information in terms of regional breakdown relating to a collective investment scheme’s assets. A number of respondents highlighted various difficulties with this approach, and the requirements are now based on named jurisdictions. Specific guidance is provided in terms of the Commission’s expectations including guidance referring to funds of fund structures and complex structures that use underlying holding vehicles to hold scheme assets.

 

5. Licensees also providing asset management and/or stock broking services

 

Where a licensee also provides asset management and/or stock broking services to clients then it will also have to submit a Form AM (2009) in respect of those activities.

 

 

1. Deadline for submission of forms.

 

As a result of comments received relating to the time required to complete the forms the deadline for submission has been extended to the end of the month following the end of the calendar quarter. This is consistent with the deadline set in respect of the Form NST.

 

2. Guidance Notes for the completion of the Statistical Return Form AM

 

The guidance notes have been expanded in order to provide more information as to the Commission’s expectations of licensees in completing the form.

 

3. GFSC Reference Number of Licensee

 

A large number of respondents asked when this reference number would be available as it has to be stated on the form. The GFSC reference number of each licensee is now shown on the Commission’s website. The information can be found by following the link to the Investment section of the Regulated Entities tab shown on the left hand side of the page. The reference number is also stated on the Commission’s letter licensing the firm or can be supplied by the Commission on request.

 

4. Main Geographic Exposure of Assets under Management

 

As a result of comments received regarding the usefulness of the requested information this requirement has been removed from the form.

 

5. Licensees also acting for collective investment schemes

 

Where a licensee is also the Designated Manager of any Guernsey authorised or registered open or closed ended collective investment schemes or has received approval under the Licensees (Conduct of Business and Notification) (Non-Guernsey Schemes) Rules 1994 in respect of any open-ended non-Guernsey scheme it will also have to submit a Form NST (2009) in respect of each scheme for which it acts.

 

The new forms are now on the Commission website:

 

 

Guernsey Financial Services Commission

La Plaiderie Chambers

La Plaiderie

St Peter Port

Guernsey

GY1 3HQ

 

Enquiries to: Peter Moffatt, Director of Investment Business

Tel: +44 (0) 1481 712706

Fax: +44 (0) 1481 713361

E-mail: [email protected]

 

10 June 2009