Announced on Tuesday, the changes will see the GFSC bring many of its supervision and policy units together as well as the creation of a number of new posts, many of which will have shared responsibilities. This will include the merger of the banking and insurance divisions to create one new unit as well as the creation of an “innovation unit”.
The changes were described by the GFSC as being “cost neutral” and aimed at “helping to increase the Commission’s effectiveness”.
However, according to a report in The Guernsey Press a local business group is unimpressed with the announcement.
The regional paper quotes Guernsey International Business Association chairman Peter Mills as saying: “There is no evidence here that this restructuring will enhance the regulatory framework, be of benefit to the business community or contribute to the future success of the Guernsey economy.
“It’s claimed to be cost neutral when we’re expecting efficiencies to be made, and there are no savings in the proposals. We have no guidance about what is the real benefit in doing this.
“And this is focusing all attention on internal issues, which will hinder the commission focusing on the external matters they should be concentrating on.”
The aforementioned innovation unit is to perform “cost benefit analysis” proposals for new business, products and services, with the ultimate aim of helping the GFSC to make “balanced decisions on the risks and rewards for the Bailiwick of authorising new innovative businesses”.
In addition, a new conduct unit will be established to take a Commission-wide lead of conduct supervision and policy, in particular the implementation of Guernsey Financial Advice Standards.
