Guernsey Pension Regulatory Regime
The Pension Licensees (Conduct of Business) & Domestic and International Pension Scheme and Gratuity Scheme Rules 2017
What is the Guernsey Pension Regulatory Regime?
Following a Discussion Paper in 2016 and a Consultation earlier in 2017, Guernsey’s new regulatory and supervisory framework for the pension sector was released at the end of June 2017. This is the first time Guernsey has had a comprehensive regulatory regime for the Pension Scheme and Gratuity Scheme sector.
What does the Regime cover?
The Regime covers the regulated activities of forming, managing or administering a Pension Scheme or a Gratuity Scheme. It also covers the rules relating to these Schemes. Effectively, therefore, the Rules can be split down into two sections:
- Majority of the sections cover the Conduct of Business Rules that the Licensee must observe
- Section 10 (and all sub-sections thereof) covers the Rules that must be applied to the Schemes operated by the licensee
Essentially, this is the same as licensees under the Protection of Investors Law having to comply with both the POI Conduct of Business Rules as well as the Rules relating to the specific type of fund they are operating.
Commencement of the new Regime has resulted in revocation of the Retirement Annuity Trust Rules, 2015 apart from rules 4 (Gearing) and 6 (RATS in payment). Licensees should therefore ensure that application of these rules remains within policy & procedure as well as the Compliance Monitoring Programme.
When does the new Regime take effect?
The new Regime is effectively live now, however there is currently a transitional period. Key dates are:
- Compliance with the Rules is required by 30 September 2018
- Licensees to complete an assessment of their Internal Controls in order to identify and plan for any amendments needed to ensure compliance by 30 September 2017
What services are Midshore offering?
As with any regulation, we offer a full range of services from guidance/advice to full project management to ensure your business is compliant with the new requirements.
At this stage we are offering a specific gap analysis service to identify where changes to the current policies and procedures will be needed. This covers both the Rules relating to licensees and those specific to the Schemes and is being offered at a fixed price of £1,750.