On Sep. 17, GUE GFSC consulted on draft investment exchange rules.
GUE GFSC issued a consultation paper on new investment exchange operator rules.
Purpose
Creation of new rules, guidance under the Protection of Investors (Bailiwick of Guernsey) Law, 2020; Regulated Investment Exchange Operator Rules and Guidance.
The 1998 Rules will be repealed and the Capital Adequacy and the Conduct of Business Rules (CoB Rules) will be disapplied for licensed operators of investment exchanges.
A new set of rules will be applying only to licensed operators of investment exchanges.
The proposed new rules will cover corporate governance and the responsibilities of senior management; compliance arrangements; the operation of investment exchange.
The licensee’s conduct of business; prudential requirements for the licensee; reporting.
Effectiveness
Comments can be submitted online until Nov. 12, 2024.
Dec. 2024 Final Rules and Guidance Published
On Dec. 17, 2024, GUE GFSC published the Regulated Investment Exchange Operator Rules and Guidance, 2024(RIEO Rules), made under Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law), which come into operation on Jan. 31, 2025.
Follows public consultation in respect of RIEO Rules, which closed on Nov. 12, 2024.
The RIEO Rules will replace the current Investment Exchange (Notification) Rules 1998 (IEN Rules), which will be revoked once RIEO Rules are operative on Jan. 31, 2025.
RIEO Rules will apply to any firm licensed under POI Law to conduct the restricted activity of operating an investment exchange; they aim to provide one consolidated, transparent point of reference for an investment exchange operator, incorporating relevant elements of the IEN Rules, other applicable rules made under the POI Law.
