The channel island signed memoranda of understanding with the China Banking Regulatory Commission (CBRC) and Chinese Securities Regulatory Commission (CSRC) in 2011 and 2013, respectively.
As a result, the GFSC “now has MoUs with all of China’s financial services regulators”, said William Mason, director general of the Guernsey regulator.
Information flow
The CIRC agreement will enable information to flow between the regulators to ensure compliance with the relevant laws in each jurisdiction.
The agreement is intended to promote the integrity, efficiency and financial soundness of those doing business between the two places.
It sets out the guidelines for cooperation which include: both supervisory bodies having a specific point of contact for communication between the organisations; the types and timing of requests for information; and the respect for a public interest test.
Chinese insurers
Mason said: “As Chinese financial services firms are expanding they are looking for a high-quality domicile from which to conduct their international business and the signing of this MoU is symbolic of the openness of Guernsey’s insurance sector to Chinese-led business.”
CIRC vice chairman Wenhui Chen, who was present at the signing ceremony alongside Guernsey Finance chairman Lyndon Trott, said: “The MoU […] shows the strong relationship built up by an important jurisdiction from developed countries and another from the emerging markets.
“I hope [it] will strengthen the relationship between China and Guernsey, especially for the insurance industry and we look forward to cooperation after the signing,” Chen said.
Guernsey Finance chief executive Dominic Wheatley added: “The signing has broader, positive implications for the island’s finance sector as it will also provide Chinese insurance companies with an approved conduit for investing into Guernsey funds, once they have obtained a quota from the State Administration of Foreign Exchange.”
