A report prepared for the G20 summit in Cannes places Guernsey in the top tier of jurisdictions that have demonstrated strong adherence to international co-operation and information exchanges.
The Financial Stability Board (FSB) prepared the report in response to a call by the G20 Leaders at the April 2009 Summit in London for the FSB to develop a toolbox of measures to promote adherence to prudential standards and co-operation amongst jurisdictions.
Guernsey was included in the FSB's initial pool of 60 jurisdictions for evaluation as it ranks highly in financial importance. Jurisdictions have been ranked into three tiers – those who can demonstrate strong commitment to financial stability, those making steady progress, and those who need to do more. Guernsey was ranked within the first tier.
Guernsey's strong commitment and adherence were evaluated on the detailed assessment of evidence compiled by the International Monetary Fund (IMF), the World Bank and the International Organization of Security Commissions (IOSCO).
Lyndon Trott, the Chief Minister of Guernsey, commented: "This is further recognition of the excellence of Guernsey's robust regulatory framework, our commitment to information exchange and transparency, and our global reputation as a co-operative jurisdiction. It once again highlights that Guernsey plays a leading role in protecting financial stability through the full and effective implementation of international standards."
Richard Walker, the Guernsey Financial Services Commission's Director of Policy and International Affairs commented: "The Commission has long believed in the importance of effective cooperation and information exchange. Supervision of firms operating across borders can only be effective when supervisors are talking to each other. The legislation we administer and what we do in practice in relation to cooperation and information exchange has been evaluated several times over the last thirteen years. It is pleasing that the Financial Stability Board also recognises that Guernsey strongly adheres to the international standards in these areas in relation to banking, insurance and securities supervision."
The FSB was established to co-ordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. It brings together national authorities responsible for financial stability in significant international financial centres, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB is chaired by Mario Draghi, Governor of the Bank of Italy. Its Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.
At the request of the G20 Leaders at the April 2009 London Summit, the Financial Stability Board (FSB) has developed a framework to strengthen the implementation of international financial standards. Underlying this framework is the belief that full and effective implementation of these standards is central to a well functioning, internationally integrated financial system.
As part of this framework, the FSB commenced in March 2010 an initiative to encourage the adherence by all countries and jurisdictions to regulatory and supervisory standards on international cooperation and information exchange. This initiative is evaluating and, where needed, promoting adherence to these standards. As an initial focus, the FSB prioritised for evaluation a pool of about 60 jurisdictions that rank highly in financial importance globally, including all 24 FSB member jurisdictions.
The FSB public statement can be downloaded from: http://www.financialstabilityboard.org/publications/r_111102.pdf
The FSB press release can be downloaded from: http://www.financialstabilityboard.org/press/pr_111102.pdf
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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