ARTICLE
24 January 2023

GFSC Publishes Final Rules And Guidance On Guernsey's New Lending, Credit And Finance Legislation

CC
Collas Crill

Contributor

Collas Crill is an offshore law firm with offices in BVI, Cayman, Guernsey, Jersey and London.

We deliver a comprehensive range of legal services to clients locally and globally in four broad practice areas: Financial Services and Regulatory; Insolvency and Corporate Disputes; Private Client and Trusts; and Real Estate.

Clients include some of the world’s leading financial institutions, international businesses, trusts and funds, as well as high-net-worth individuals and families across the globe. We continue to build a network of independent and trusted partners around the world including the Caribbean, the Channel Islands, the UK, Europe, the US, the Middle East, South Africa and Asia.

The Guernsey Financial Services Commission (GFSC) has published its feedback paper (19 Jan 2022) on the consultation around the Lending...
Guernsey Finance and Banking

The Guernsey Financial Services Commission (GFSC) has published its feedback paper (19 Jan 2022) on the consultation around the Lending, Credit & Finance Rules, Guidance and Implementation, following the States of Deliberation's approval of the Lending, Credit and Finance Law ("the LCF Law") on 14 July 2022.

The LCF Law requirements come into operation on 1 July 2023 and the window for licence applications formally opens on 1 February 2023. Published alongside the feedback paper were the final form of the Lending Credit & Finance Rules and Guidance, 2023 together with detail of a series of class exemptions from licensing the Commission is putting in place in accordance with the LCF Law.

Notwithstanding the LCF Law's name, the licensing regime extends beyond lending to a total of four categories:

  • Consumer Credit & Home finance;
  • Financial Firm Businesses;
  • Virtual Asset Service Providers and;
  • Fintech platforms.

This is because the LCF Law effectively replaces Guernsey's existing Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008.

Guernsey firms holding an existing NRFSB Law registration or operating in the crypto, fintech or lending spaces should therefore consider the necessity of LCF Law licensing with the benefit of the new rules, guidance and exemptions and if necessary begin taking the next steps towards an application. Collas Crill's finance and risk and regulatory teams have been monitoring the development of the LCF law since its initial proposal and will be issuing further guidance in the relevant categories in due course.

In the meantime, we would be delighted to assist or guide you with any queries at this stage.

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More