LICENCE fees for regulated financial services businesses are to rise by 2% next year – despite concerns raised by the industry.

The Guernsey Financial Services Commission has announced it is ‘capping’ fee increases at 2%.

The proposal, announced in October, was hugely unpopular with the industry. One business principal said yesterday it was a move which would ‘adversely hinder our attempts at growth’.

The commission has, though, now back-tracked on a proposal to significantly increase application and annual fees for insurance cells.

It had argued that the move would compensate for an increasing use of cells for captive operations and away from pure captives, but it was vehemently opposed by the Guernsey International Insurance Association.

Chairman Martin Le Pelley, pictured, said that proposed increases of 41% and 21% – to take both fees to £2,000 each – were ‘ill-timed and anti-competitive’ and welcomed the change of heart yesterday.