The agreement has been signed by William Mason, Director General
of the GFSC, and Xiao Gang, Chairman of the CSRC. The official
announcement was made after a meeting in Beijing on Monday 18
November between Mr Mason and Liu Xinhua, Deputy Chairman of the
Mr Mason said: "Guernsey has high regulatory standards and
this has been demonstrated to, and recognised by, the CSRC during
the course of our discussions which have culminated in signing the
MoU. The MoU provides the basis for a framework of cooperation and
exchange of information between the two sets of authorities in
relation to securities and futures business."
The MoU sets out a statement of intent to establish a framework
for mutual assistance and to facilitate the exchange of information
between the authorities to ensure compliance with their respective
securities and futures laws or regulatory requirements in order to
promote investor protection and the integrity of the investment
Mr Mason added: "Guernsey's financial services business
is becoming ever more global and as such, it is vital that we
ensure agreements such as these are in place to facilitate
effective regulation and supervision going forward. Importantly,
this MoU is also a prerequisite for Guernsey domiciled funds
receiving a licence from the CSRC under the Qualified Foreign
Institutional Investor (QFII) regime which provides a quota for
external investment into Chinese capital markets."
The meeting with the CSRC took place on the first day of a
week-long delegation by Guernsey officials to Beijing and Shanghai.
As well as Mr Mason, the delegation also includes Peter Harwood,
Guernsey's Chief Minister; Kevin Stewart Guernsey's
Commerce and Employment Minister; and Fiona Le Poidevin, Chief
Executive of Guernsey Finance - the promotional agency for the
Island's finance industry.
Miss Le Poidevin said: "The relationship between Guernsey
and China remains somewhat in its infancy in terms of investment
business so it is important that the regulatory authority in
Beijing has a good understanding that the Island is a well
regulated, compliant and cooperative jurisdiction. The MoU not only
provides the basis for greater cooperation between the two
regulatory bodies but it also provides a signal to the rest of the
Chinese market that Guernsey is a respectable fund domicile.
"The MoU is the first step in allowing Guernsey domiciled
funds to participate in the QFII programme and as such, adds to our
appeal as a jurisdiction that can act as a gateway for investing
into China. It will also mean we are much better placed than some
other competitor centres to take advantage of the growing number of
inward and outward investment opportunities being made available by
the continued liberalisation of the Chinese economy.
"More broadly, the MoU also shows a further widening of the
relationship between Guernsey and China which has continued to
build since we first established our office in Shanghai in
Jersey's Royal Court has ruled that a house and land in St Helier which were left in a will to a UK body with charitable status (the "Charity") which could not take ownership of them could pass to a company...
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