The Director General of the GFSC has warned against over regulating the finance industry.
Giving a recent speech, William Mason instead said that the regulator must “enable growth” and “not regulate it into obscurity”.
Speaking at an event organised by STEP, Guernsey branch and the Guernsey Association of Trustees Mr Mason gave a clear indication that the GFSC will be working on a ‘pro-growth’ plan during 2026.
He said the new pragmatic regulatory agenda will put economic prosperity and financial stability ahead of the precautionary principle.
He cited his own experience in regulation when sharing his concerns about the industry.
“For the more than twenty years I have been involved with regulation in some way or other, I have been concerned at the impact which over-regulation can have on productivity, growth and the general wellbeing of the population,” explained Mr Mason.
Later in his speech he referenced risk taking – and cautioned against a safety first approach.
“Why, one might ask, has US GDP grown rather more than EU GDP over the past few years – perhaps because one political and regulatory culture understood the value of risk in pursuit of life, liberty and happiness whilst the other was remarkably precautionary in its attitude because precautionary centralised regulation helped Brussels-based power brokers assert control over a diverse range of national or regional risk cultures.”
Mr Mason used his speech to also caution against a total focus on sustainability – warning businesses against setting ‘net zero’ targets when there are other options available.
“Globally, we are seeing an increasing questioning of the drive towards net zero at all costs. I am not here just talking about the reforms made by Donald Trump’s administration but also the moves being made by the EU, ever more quickly, to roll back the environmental legislation which it passed only a couple of years ago. I think they may finally have realised that, following Max Weber’s view of Confucian China, it is probably better not to regulate your economy into obscurity through excessive zeal for the precautionary principle.”
Mr Mason’s speech confirmed a shift in emphasis for 2026 and beyond from the GFSC.
He said there are no plans to impose mandatory ISSB/IFRS sustainability disclosure standards in the foreseeable future, a new Guidance Note on anti-greenwashing will be issued this month, and he said the Commission is working on proposals to broaden the Finance Sector Code of Corporate Governance to require boards to consider environmental matters holistically rather than narrowly focus on net zero.
On digital finance, he explained the Commission’s work to help make Guernsey one of Europe’s most hospitable jurisdictions will include a consultation paper on regulatory changes to support tokenisation, stablecoins and digital asset custody, encouragement for widespread adoption of AI across all financial sectors, and the rebranding of the innovation ‘soundbox’ as a fully-fledged sandbox complimented by an enhanced concierge service for firms wishing to launch innovative products or services.