(Update Issue Number 8 Autumn/Winter 1996)

Plans are in their final stages for Guernsey to become during 1997 only the second location outside New York to specialise in what for the Island will be a totally new form of international insurance business - that of financial guarantee insurance.

Financial guarantee insurers are highly rated insurance companies which specialise in guaranteeing the regularly scheduled principal and interest payments on investment grade debt instruments thereby insuring investors in such instruments against financial loss through default.

Steve Butterworth, Superintendent of Insurance, says: 'A company specialising in financial guarantee insurance business is already poised to set up in the Island. Potentially the type and volume of business it is expected to attract could lead to the development of a significant additional category of insurance business for Guernsey.'

The coming into force of new Guernsey legislation catering specifically for the authorisation and regulation of locally based financial guarantee insurers is imminent.

For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: info@gfsc.guernseyci.com

Visit the Guernsey Financial Services Commission Web Site at Click Contact Link

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.