11. Consequential Amendments

Financial Services Regulation

If the Committee were to recommend the enactment of LLC legislation, it would be necessary to identify consequential amendments to other areas of Guernsey legislation.

In addition to the Income Tax (Guernsey) Law, 1973, and the regime under the Beneficial Ownership of Legal Persons (Bailiwick of Guernsey) Law, 2017, the Committee is conscious that there may need to be amendments to the Bailiwick’s regulatory framework.

It is anticipated that the provision of corporate services to LLCs (i.e. formation, management or administration, advice relating to the same and the provision of individuals to act as officers) would be restricted activities under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2000 (the “Fiduciaries Law"). This would mean that a fiduciary licence, in order to provide such services, would be required, that the provision of such services would be subject to the supervision and oversight of the GFSC, and that the Bailiwick's anti-money laundering and countering the financing of terrorism framework would also apply.

Consideration would also need to be given as to whether LLCs should be permitted to engage in all forms of regulated financial services business, or whether there should be any restrictions on the regulated activities which they can undertake.