The introduction of the regulations will be phased to allow providers time to prepare.
Phase 1 will see the Government focus on addressing key consumer harms in the market, including high fees by service providers, a lack of transparency on fees imposed on members’ benefits, and unsuitable advice. It will do this by introducing direct regulation for investment businesses service providers.
Pictured: Constable Richard Buchanan said the proposals will “allow a more focused and appropriate approach to ensuring all aspects of the island’s financial services is captured by regulation.”
In Phase 2, the remit of the Channel Island Financial Service Ombudsman will be extended to include all private pension schemes.
In Phase 3, the Government will put forward legislation to regulate all local tax-approved pension products and service providers, including providers in the retail market, and the private market.
Assistant Minister Constable Richard Buchanan commented: “Currently pension providers are largely captured under other sections of our financial services legislation. This move will show further progress and allow a more focused and appropriate approach to ensuring all aspects of the island’s financial services is captured by regulation.”