Guernsey Financial Services Commission plans 15–20% discount on 2027 insurance fees after GBP 1.96mn enforcement fine

The Guernsey Financial Services Commission announced it expects to discount annual fees for the insurance sector in 2027 by 15–20%, funded by surplus penalty income from a GBP 1.96mn fine imposed on an insurance licensee. It also confirmed a 15% discount to the pro‑rata annual fee for any new insurance licensee authorised after 15 March 2026. The GBP 1.96mn penalty is described as the largest fine levied since the States of Deliberation changed the Commission’s fining powers in 2017 following a MONEYVAL recommendation, and it was calculated using factors set out in the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020. Case costs were estimated at around 60% of the fine income; under section 39(8) of the Enforcement Powers Law, the remaining amounts must be taken into account when determining fees in the following calendar year (or, if not reasonably practicable, the subsequent year). Because the licensee is both an insurer and an insurance manager under the Insurance Business (Bailiwick of Guernsey) Law, 2002 and the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, the Commission plans to apply the surplus to reduce 2027 fees across the insurance sector; for new entrants, the application fee remains payable in full. An annual fee consultation for all of industry is scheduled for early autumn 2026. The Commission noted the final insurance-sector discount rate will depend on factors including the number of insurance firms as at Q3 2026, their size, and other relevant details.