Family Loan Structure Analysis

Definitions:

"LCF Law" means The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022.

"Notice" means the Guernsey Financial Services Commission's Notice with respect to the disapplication of the requirement to hold a licence under section 40 of the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022.

1. LOAN FROM AN INDIVIDUAL TO A FAMILY MEMBER

This might be subject to both:

• Part II of the LCF Law, as credit business; and
• Part III of the LCF Law, as "lending" (and thereby constituting "financial firm business").

However, the following exemptions apply:

Part II

• Credit to family members. Part II of the LCF Law is disapplied under paragraph I of the first section of the Notice (as this is person which extends credit to family members).