Regulatory Investigations In Guernsey

Guernsey licensees regulated by the Guernsey Financial Services Commission ("GFSC") have routine visits by the GFSC to check on their compliance with the local regulatory law, regulations and rules. The GFSC will examine and may identify deficiencies in a regulated licensees corporate governance, management or internal controls. In those circumstances, the GFSC will require that the remediation work is carried out by the licensee to address any contraventions or misconduct, within a strict timetable to ensure that the entity is returned to full compliance, as soon as possible.

If that remediation work is inadequate and/or co-operation from the regulated entity is lacking, the GFSC can use its enforcement powers including the ability to issue fines, and prohibition orders as well as public statements. The critical question which a Guernsey licenss (or business) will need to swiftly address is how to respond and how to manage the situation.