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Guernsey Regulator Plans Company Fee Hike

Thursday, October 11, 2012

The Guernsey Financial Services Commission (GFSC) has proposed that company fees will rise from 2013 to meet the rising costs of regulating the financial sector.

In a consultation paper outlining the proposals, the GFSC said that presently its operations are costing around GBP12m (USD19.2m) a year although measures are afoot to significantly cut operational costs, based on the recommendations of a report by Ernst and Young in 2012. It is the Commission's policy to retain reserves worth at least six months' operational costs, but these are presently lacking and need rebuilding, the Commission said.

Under changes currently being consulted on by the GFSC, application and annual fees will generally rise by 2%. However, fees for insurance cells will rise by GBP580 (41%) for applications and GBP350 (21%) for annual renewal.

The proposal follows the Commission's decision last year to freeze fee levels. Indeed, the creation of a further intermediate fee band in the fiduciaries sector had the effect of reducing fees for some licensees during 2012, the GFSC says.

By hiking fees by 2%, effective from January 1, 2013, the Commission will post a surplus of GBP84,000 during 2013, against a projected deficit of GBP306,000 if fees were to be retained at 2012 levels.

In order to deflect possible criticism that the fee hike may render Guernsey uncompetitive in relation to the other Crown Dependencies, Jersey and the Isle of Man, the consultation paper states that it is not straightforward to compare fee structures, given their different structures, funding commitments and expenses. For example, while fees in Guernsey's banking sector are typically higher than in Jersey and the Isle of Man, funds are considerably cheaper to set up and maintain in Guernsey than in Jersey.

The Commission projects that the number of licensed banking institutions in Guernsey will have fallen by three on January 1, 2013, down from 35 on January 1, 2012. The Commission said however that during the course of the year it had continued to receive enquiries by prospective new licensees, but that it could not be certain these would translate into new business for Guernsey. Outside the banking sector, the Commission has forecast modest growth in all other subsectors, however.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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