Lending, Credit & Finance

The Commission has today published its feedback paper following the consultation on Lending, Credit & Finance issued on 21 July 2022, together with the final Lending, Credit & Finance Rules and Guidance and a s40 instrument giving notice of various exemptions from the requirement to hold a licence in respect of the carrying on of business regulated by the law.

The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 was approved by the States of Deliberation, the States of Alderney and the Chief Pleas of Sark in July 2022.  It will come into effect in full on 1 July 2023, by which time firms carrying on business regulated by the law will need to be licensed and to follow the rules set out by the Commission.  As well as regulating the provision of consumer credit, the law regulates Virtual Asset Service Providers and replaces The Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008.

The Commission received an excellent response to the consultation, with more than 50 responses from across a range of stakeholders.  It has reviewed all of the responses received and made a number of changes to the draft Rules and Guidance which are designed to strike a balance between proportionate regulation and the protection of customers without unduly restricting the market and maintaining access to services from a variety of providers.  

The Commission will accept licence applications from 1 February 2023.  Forms are available on the website and persons requiring a licence are strongly encouraged to apply early.  Those applying before 31 March 2023 will benefit from a significant (50%) discount on the application fee.  The Commission is expecting a considerable number of new licence applications and is aiming to process all applications received by 31 March 2023 by 1 July 2023.