Guernsey Financial Services Commission clarifies the “established place of business” exemption for company directors under the fiduciaries regime

The Guernsey Financial Services Commission has issued clarification on how to assess whether a company has an “established place of business” in the Bailiwick of Guernsey for the purposes of the statutory exemption that can allow certain directors to avoid registration or licensing. The clarification is intended to help individuals determine whether acting as a director “by way of business” may trigger regulatory requirements under the fiduciaries framework. The Commission reiterates that acting as a director is a regulated activity in the Bailiwick and that the relevant exemption applies only where the company has an established place of business in the Bailiwick and the director supplies no services to the company consisting of, or comprising, a regulated activity. It explains that having only a registered office in Guernsey or merely keeping statutory documents in the Bailiwick to meet requirements under the Companies (Guernsey) Law, 2008 or the Companies (Alderney) Law, 1994 is not sufficient. The factors to consider include whether the company has its own premises and staff in the Bailiwick, the nature of its occupancy of those premises, and what activities or services the company carries out within the Bailiwick, with the exemption not intended for directors of companies with no clear substantive business activities in the Bailiwick.