The move is likely to spark a fresh row with the finance industry amid claims that the Guernsey Financial Services Commission is over-regulating business.

Plans for GFSC staff to meet regularly with board members of banks that it regulates have been slammed by the Guernsey International Business Association.

Giba also demanded the regulator quash industry speculation that it intends to attend board meetings of all businesses it licenses. Giba said that would constitute unnecessary regulation.

‘This is unlikely to be particularly effective and will cause yet further massive resourcing requirements at the GFSC, which the industry would end up paying for,’ said Giba chairman Paul Meader (pictured).