Guernsey's Finance Sector Code of Corporate Governance came into force on 1 January 2012.
It replaces the Guidance on Corporate Governance in the Finance Sector issued in December 2004 by the Guernsey Financial Services Commission (GFSC).
The Code applies to all companies holding licences from the GFSC under relevant regulatory laws such as banks, captive insurance managers and fiduciaries. The Code does not cover Guernsey branches of foreign companies, insurance companies governed by the Licensed Insurers Corporate Governance Code or companies reporting against the UK Combined Code or the AIC Code.
The Code consists of eight principles. Each principle is supplemented by more detailed guidance on how the principle should be applied.
The GFSC acknowledge that the Code is not intended to be prescriptive and one size does not fit all and applying the Code to a business will depend on the nature, scale and complexity of the business.
Non-compliance with the Code does not result in an automatic sanction. However, non-compliance can be taken into account in regulatory action and in civil proceedings may be used as evidence of breach of fiduciary duty.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.