The Guernsey Financial Services Commission (GFSC) and the Bank of England (BoE) have signed a memorandum of understanding allowing them to share confidential information about regulated entities and co-operate on supervision activities.
The agreement reaffirms the long-held relationship between the Guernsey regulator and BoE’s Prudential Regulation Authority (PRA), which dates back to the days of the PRA’s predecessor, the Financial Services Authority.
The PRA is responsible for the prudential regulation and supervision of banks, insurers and major investment firms, regulating some 1,700 financial firms.
The agreement was signed by GFSC director general, William Mason, and Sam Woods, deputy governor at the BoE for prudential regulation and CEO of the PRA.
GFSC director general, William Mason, said the agreement emphasises the longstanding regulatory cooperation which has existed for a considerable period of time between the UK and Guernsey.
Mason explained: “There is a very productive and good relationship between the GFSC and the PRA, and we see this confirmation as good news for the Bailiwick, demonstrating that we are regarded as credible operators by our main counterparties.”
“It has been signed in the spirit of mutual cooperation and information exchange seen as crucial by the G20 countries and international standard-setters for financial services supervisors.”
Dominic Wheatley, chief executive of Guernsey finance, added: “A good relationship between regulators in Guernsey and the UK is important for financial services in the island and particularly as both parties seek to reposition the trading relationship post-Brexit.”