GFSC Supervised Roles following Revision of Laws

GFSC-regulated firms are well aware that, with effect from 1 November 2021, GFSC’s Revision of Laws project culminated in some major changes to their regulatory Laws and Rules.

On that date the 2020 Laws for the investment, banking and fiduciary sectors replaced the 1987, 1994 and 2000 Laws. For the insurance sectors, revisions to the 2002 Laws came into force at the same time. There was some standardisation, including GFSC’s enforcement powers being taken into a separate Law covering all regulated sectors.

What’s taken some time to be appreciated is that requirements for notifying GFSC of controllers, directors, managers etc have not only fundamentally changed, but are still very different across the sectors. Having assumed the requirements would be standardised, we only realised there are many differences when we started applying them for clients across the sectors.

We’ve prepared this infographic for quick reference on how the supervisory Laws treat particular roles – specifically, whether they are approved, vetted or notified supervised roles. The implications of those categories are summarised after the table.

Under the various laws the reporting requirements are as follows:

Approved Supervised Roles

Before becoming a person in an Approved Supervised Role, the person or the regulated firm must notify GFSC in writing the intention that the person should be a holder of that role and GFSC must notify the regulated firm in writing that they have no objection to the person holding such a role.

Vetted supervised roles

Before becoming a person in a Vetted Supervised Role, the regulated firm or the person (however for banks, only the bank) must notify GFSC in writing of the intention that the person should be a holder of that role and GFSC must notify the regulated firm in writing that they have no objection to the person holding such a role. GFSC notice shall be deemed to have been given after 60 days beginning on the date the firm complies with these and any other requirements (or a longer period as GFSC may before the 60 days determine) unless, before the 60 days, GFSC serves notice of objection.

Notified Supervised Roles

Notification must be made by the regulated firm to GFSC within 14 days of the fact that a person has taken on the role or has ceased to be a holder of such role.

Appointment of auditors

For banks, insurers and insurance managers auditors are Notified Supervised Roles. However, if the auditor’s term of office ends an immediate notification must be sent to the GFSC with an explanation of the fact.

For licensed fiduciaries and those licensed under the Protection of Investors Law the licensed firm must notify GFSC immediately upon making an appointment of an auditor and if an auditor’s appointment comes to an end.

There are also provisions for notification to GFSC of notices to shareholders proposing a change of auditor. These also vary across sectors.