Guernsey
Guernsey covers roughly 24 square miles and is located in the Gulf of St Malo, about 70 miles southwest of England and 30 miles west of Northern France. It has a population of around 63,000.
An English-speaking jurisdiction, Guernsey is renowned as one of the world’s most sophisticated and secure international finance centres. The financial services sector has been expanding since the late 1970s, evolving into a mature and well-experienced industry.
Guernsey operates in the same time zone as London, with frequent air links to London and other UK airports, making one-day business trips straightforward.
The island has its own parliament, the States of Deliberation, which is democratically elected. Although political parties are a recent development in Guernsey, the island is not subject to significant shifts in regime or policy. The States are responsible for domestic affairs, the economy, and the tax regime. Guernsey enjoys full fiscal autonomy in tax and regulatory matters, maintaining a flat personal income tax rate of 20% for several decades. There are no capital gains or inheritance taxes in Guernsey, and the corporation tax rate is 0%, except for certain types of regulated businesses and Guernsey-source property income.
As a Crown Dependency, Guernsey’s connection to the UK is via the Crown rather than the British Parliament, where Guernsey does not have any representation.
The regulation of Guernsey's finance sector is managed by the Guernsey Financial Services Commission, which was established under the Financial Services Commission (Bailiwick of Guernsey) Law, 1987. As one of the first unitary regulatory bodies globally, the Commission is responsible for overseeing various professions and entities, including accountants, banks, company administrators, directors, estate agents, insurers, insurance intermediaries, investment firms, and trust administrators.
The Commission ensures that financial service providers on the island adhere to established international standards.
In addition to its general supervisory role, the Commission has statutory powers to enforce compliance with the laws regulating financial activities in Guernsey. Its primary duty under these laws is to ensure that all institutions authorised to conduct finance business on the island are fit and proper, encompassing integrity, competence, and solvency. Institutions are also required to comply with international anti-money laundering regulations.
