fiduciary supervision policy and innovations division - guernsey financial services ... · 2016....

Fiduciary Supervision Policy and Innovations Division

Productivity, Prosperity & Panorama

Gillian Browning, DirectorEamonn Finnerty, Deputy Director

Copyright of Guernsey Financial Services Commission

Presentation Overview

• Productivity• A look back

• Prosperity• Overview of the sector

• Panorama• A look forward to 2016


Productivity – How?


EngagementPRISMPRISM

IntelligenceIntelligence

Data Returns

Data Returns

Open Breakfast

Open Breakfast

InternationalInternational

Industry Consultation

Industry Consultation

Productivity – External Perspective

Mark Pattimore, Chairman Guernsey Association of Trustees (GAT)


Productivity – NRFSB

• Foundations built with the NRFSB Questionnaire• Four work streams:


Risk Analysis

Lending

Signposting

Stakeholder engagement

Productivity – 2015 Recap


Risk Based Supervision

PRISM

Innovations

Online Submission

Policy Development

AML Visits

Thematics

The Public TrusteeThe functions of the Public Trustee shall be……it is necessary or desirable for him so to act –

(A) for the purposes of preserving the trust assetsor otherwise in the interests of the beneficiaries ofthe trust; or(B) for the protection or enhancement of thereputation of the Bailiwick;

The Public Trustee (Bailiwick of Guernsey) Law, 2002 PART II. 2 (1) (a) (iii).


Productivity – Fiduciary Staff Employed v Turnover


2,220 2,162 2,219

1,227 1,197 1,206

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2013 2014 2015

Employees - regulated activity Employees - other activities Turnover

Turnover £Staff

Productivity – Turnover & appointments


£0

£50,000,000

£100,000,000

£150,000,000

£200,000,000

£250,000,000

£300,000,000

£350,000,000

£400,000,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

App

oint

men

ts

Trusteeships DirectorshipsFull

Turnover


Total number of fiduciary licensees = 187


2013

37

17

66

42

25

2014

41

68

39

18 26

International financial group

Privately owned - local

Personal Fiduciary Licensees

Lawyers and accountants

Privately owned - overseas

2015

38

69

43

2123


Productivity – Total Fiduciary Licensees

Assets £

Internationalfinancial group

Lawyers andaccountants

Privately owned -local

Privately owned -overseas

2013 2014 2015

Productivity – Distribution of assets


USA3.8%

Bermuda, Caribbean

& Latin America

0.2%

Africa1.5%

Middle East6.7%

Russia1.8%

China1.3%

Europe17.2%

Asia & Far East1.4%

UK36.2%

Local19.6%

Productivity – Location of new business

South America

0.2%

Other 10.2%


Prosperity – Thematic

Scope and objectivesFiduciary decision making in respect of assetsunder trust• Questionnaire sent to all full fiduciary licensees• Site visits to 8 licensees• Our objective was to identify and share good

practice


Good practice• Well developed investment review processes• Intelligent use of third parties within the review

processAreas for improvement• Increased transparency – fees and retrocessions• Detailed minutes – including the rationale behind

decisions• Measurable trust objectives


Prosperity – Thematic (continued)

Prosperity – Role play


Prosperity – Summary of themes

1. Governance challenge from newownership structure

2. Key man risk

3. Outsourcing function v. responsibility(which could indicate culture at firm)

4. Appropriate PII policy


Guernsey Financial Services Commission

Financial Crime Risk

Governance Risk

Operational Risk

Conduct Risk

Strategy / Business Model Risk

Capital Risk

Overall Risk

Insurance Risk

Liquidity Risk

Environmental Risk

0 20 40 60 80 100 120 140 160

Prosperity – RMP actions since go live

Fiduciary Duty in

respect of Tax advice

Client Money/Assets Data Security RATS

Outsourcing Trustee

Investment Duty

Financial Resources

RequirementClient Take

On


Panorama – Potential Thematic Reviews


Risk Based Supervision

PRISM

Online services

Open to Innovation

Robust Authorisations

Gatekeeper

Revision of Laws

GIFCSTCSP Standard

Panorama – 2016 expectations

fiduciary supervision policy and innovations division - guernsey financial services ... · 2016....

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