Guernsey may follow Jersey in adopting RDR style consumer protection measures for its financial industry. – Guernsey has now confirmed it has established a working party to consider consumer retail protection measures.

A spokesman for the Guernsey Financial Services Commission (GFSC) said: “The commission has established a working party to consider retail consumer protection, and those issues encompassed by the RDR are under consideration, besides others.”

Local paper the Guernsey Press yesterday carried reports of a “root and branch review” of the island’s financial regulation. The article said the GFSC was to bring in external consultants in order to “re-establish the regulatory objectives of the commission.”

GFSC director general Nik van Leuven has apparently admitted the commission had become “disconnected” from the industry.

According to figures in Jersey’s financial sector, included in the reasons for moving to RDR style regulations was a desire to be seen to be following global best practice in regulatory matters.

However, some had expressed concern that Jersey could lose business to Guernsey in a form of regulatory arbitrage if the latter did not also follow the UK’s lead.

Given Guernsey’s admission it is also considering new regulations, such fears may now be academic; though it must be remembered, unlike Jersey, the island has yet to formally commit to any change.

http://www.international-adviser.com/article/guernsey-mulling-rdr-regulations