‘GFSC’s heavy-handed approach could drive business from island’
Monday 21st February 2011, 11:30AM GMT.
LEADING advocate Peter Ferbrache (pictured) has called on the Guernsey Financial Services Commission to soften its approach towards business in the island.
He said the regulator’s actions in recent months had become too heavy-handed, was putting people off from becoming directors, and could potentially drive business away from the island.
His comments come as it has emerged the GFSC could be intending to attend board meetings of all businesses it licenses, and follows on from a seminar his firm, Mourant Ozannes, held earlier in December on the amount of regulatory scrutiny being exerted on local directors by the regulator.
‘I’m speaking up because I would like Guernsey to prosper as a financial centre, and for it to be seen as a well, but sensibly, regulated jurisdiction, rather than somewhere businesses are going to come and the regulator is going to stamp all over them.’
- Read the full story in the Guernsey Press. See below for subscription details.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
I support Advocate Ferbrache’s view that over zealous regulation is not conducive to business growth. I fear that the current situation has been caused by major and constant amendments to our regulatory regime which are not fully understood by the regulator or by those regulated. A single instance of over zealously applied regulation is magnified by Chinese Whispers in a small Island and it is the fear factor that dissuades potential directors and not always the actuality of the regulations. Communication is the answer and Advocate Ferbrache’s statement is well timed and I hope it will open the debate which is sorely needed.
Report abuse
I would love to know where the GP or Peter Ferbrache get the idea that the GFSC is intending to attend all Board meetings.I doubt they have the resources or the inclination. I have not seen this suggestion anywhere and certainly not heard it discussed.
Also maybe some of these Directors, particulalry the non-executive directors need to realise that as a director of a licensed entity they have certain responsibilities for which they should be properly trained and hav ethe appropriate experience. They should not be non-executive directors just because of their previous background and because they fancy a free lunch.
Too many ex-bankers, accountants and advocates have too many directorships in industries that they know little about.
Jobs for the boys?
Report abuse
Didn’t we discuss this about 3 months ago?
Report abuse
@Lyn – completely agree with your comments.
Jeremy Quick of the GFSC Banking division did make reference to the GFSC attending board meetings at the briefings last year at St James under the Corporate Governance session. He noted that the GFSC MAY ask to attend board meetings.
Report abuse
Sarah
And if the GFSC do ask and their request is declined by the business, what will be the repercussions for that business? Its very hard to say no to the regulator, so a request is really much more than that.
This is an appalling development and is totally unnecessary on a general basis. If the GFSC was to come out and say that it would only ever be requested of an organisation who are on the list of licensed businesses which they are very concerned about, i.e. its an attempt by the GFSC to help those businesses to sort themselves out and avoid their licence potentially being revoked, then I wouldn’t have any problem at all with it. But they haven’t said that.
And how on earth are they meant to resource themselves to enable then to sit in on board meetings? They’ve hardly got any staff left because of the serious morale problem. Is it merely an attempt to help them to justify licence fee increases?
Its very simple. The man at the top simply has to go before there is nobody left at all to regulate the finance industry. How bizarre would it be if the GFSC itself is no longer for for purpose? Its extremely close to that right now and its only going to get worse unless the Director-General is removed. Morale there amongst the staff is at absolute rock bottom.
If any regulated business was hemorrhaging senior staff like they are then the business would have been called in to explain what the hell was going on. It has to cut both ways.
Report abuse
I cannot see the GFSC implementing a general policy of attending board meetings. Aside from the issue of lack of resources, it would break down the formal communication between the regulator and the regulated.
The GFSC would be deemed to know everything that was discussed at the board meeting and licensees would be able to say “well you were there when it was discussed” if the regulator tried to make an issue out of something at a later date. It would be counterproductive.
I can only see it happening where there is a known issue that needs to be resolved.
Report abuse
I must be a closet regulator – I for one am very happy that the GFSC is flexing its muscle. About time!
If the GFSC ask to sit in on a board meeting, it should be seen as a positive and an opportune time to demonstate good corporate governance.
Report abuse
I think it is commendable that the GFSC are taking such a stance due to the fact that Mr. Ferbrache is complaining its seems to be working…
GFSC may wish to attend the odd board meeting of the odd licensee to see Corp Ogernance in action but logistically they couldn’t and shouldn’t attend them all – good fun if they did though!
Report abuse
@ Lyn – “I would love to know where the GP or Peter Ferbrache get the idea that the GFSC is intending to attend all Board meetings.”
This was announced some time ago, they are correct in their reports.
Report abuse