December 2014 Introduction Overview of the Strategic Plan - - PowerPoint PPT Presentation

Financial Services Commission Roadshow December 2014

Introduction

Overview of the Strategic Plan Questions and Answers Introduction to Regulatory Operations Meet your Sector Specialist

The Financial Services Commission

• The FSC is the regulator of an

international financial services centre.

• Regulating providers of financial

services conducted in both Gibraltar and other jurisdictions, particularly the UK.

• A Strategic review was conducted

earlier in the year against the:

• Vision statement
• Mission statement
• Regulatory objectives
• Principles of good regulation

Our Vision and Mission

Mission

To be recognised by our stakeholders as the model international financial services regulator.

To provide financial services regulation in an effective and efficient manner in order to promote good business, protect the public from financial loss and enhance Gibraltar’s reputation as a quality financial centre.

Vision

Regulatory objectives & principles of good regulation

Regulatory Objectives

• Promotion of market

confidence

• Reduction of systemic risk
• Promotion of public

awareness

• Protection of the good

reputation of Gibraltar

• Protection of consumers
• Reduction of financial crime

Principles of good regulation

• Effective use of resources
• Proportionate
• Facilitators of innovation
• Maintain competitiveness
• Minimise adverse effects of

regulation

Strategic Plan 2014 – 2017

• Background
• Strong history of delivering effective regulation
• Must not rest on laurels – we need to be prepared for
• Challenging international and EU regulatory agendas – increasing

focus on front line delivery

• GoG policy drive to promote and develop financial services sector
• Market demands and developments as firms respond to new

challenges and opportunities

• Increasing pressure on firms to manage their cost base and be

competitive

Strategic Plan 2014 - 2017

Continuous improvement to maintain confidence we do two things really well:

1.

At all times act promptly and effectively when risks are identified, concentrating on the issues that matter most.

2.

Enable the swift and efficient transaction of the industry’s business with the FSC: work always to respond in shorter timescales, minimise the burden and cost of compliance

Strategic Plan 2014 – programme

• f activity to deliver this twin

purpose.

Strategic Objectives

5 strategic objectives that articulate our regulatory intent:

1.

Competently ahead of the important risks and developments

2.

Effective cross-border regulator

3.

Support the sustained growth and development of Gibraltar’s financial services sector

4.

Efficient, targeted regulation – value for money

5.

Accessible – easy to do business with

Organisation – Supporting delivery

Supporting delivery – some key points

FSC restructuring

• clear focus on firms’ business with us, e.g. authorisation
• delivered by teams made up of sector specific staff
• senior sector point of contact

Recruitment and training to deliver experience, capability and capacity

• Technology upgrade to deliver the necessary information capture,

analysis and management systems

Supporting delivery – some key points

Effective stakeholder engagement plan

• More resource put into active early engagement – e.g. use

experience of our regulation to inform the changes we make

• Overhaul of website

Financials

• GoG has confirmed financial support
• Firms may be subject to normal increases in license fees, subject to

consultation

• No exceptional increases envisaged.

Benefits

• Over 2014 – 2017 strengthened, measured ability to:
• Engage openly and constructively
• Manage our resources effectively to deal with key risks
• Facilitate innovation and competiveness through:
• a streamlined approach to authorisation;
• a focused approach to supervision;
• straightforward regulatory framework
• Be recognised internationally as a fair and credible

regulator

• Make competent and fair decisions
• Support consumer confidence in Gibraltar financial

services and products.

REGULATORY OPERATIONS

Kathryn Morgan Director of Regulatory Operations

Regulatory Operations

14

Joanne Beiso Head of Conduct of Business Joe Perdoni Head of Prudential Neill Perera Head of Professional Services Kathryn Morgan Head of Authorisations (Acting)

Meet our team

Overview

• The restructure in this particular area will improve our

focus on risks to our objectives

• Our approach to supervision will be
• Proportionate
• Focused
• Risk based
• ‘One size’ doesn’t fit all but everyone will get some supervision
• We look forward to confirming your contact points shortly.

Authorisations

• Streamlined authorisation process focusing on
• Key risks
• Quick process
• Making sure the people and companies we license meet our

standards

• We will say no quicker as well
• Accessibility and efficiency is key
• Current developments include
• Improvements to the website
• Streaming forms to make the process simpler
• Interactive workshops in January

Conduct of Business Supervision

• Focus on consumer protection and ensuring that

customers of firms are given a fair deal.

• The team will look at how a regulated business interacts

with customers, and will be assessing how a firm;

• classifies customers.
• advertises and market its products and services
• communicates with customers.
• manages conflicts of interest.
• manages dealing practices.
• complies with due diligence requirements
• what type of agreements it puts in place with consumers

Prudential Supervision

• Focus on maintaining the stability of the financial system

and protecting consumers via supervision of individual regulated firms.

• Focus on the protection of consumers and the reputation
• f Gibraltar via supervision of
• how businesses are run.
• identifying risks to a firm’s solvency.
• how bank depositors’ funds are protected.
• how an appropriate degree of protection for policyholders of

insurance companies is secured

Professional Services Supervision

• Focus on the supervision of fiduciary services providers

and audit and insolvency practitioners.

• The team will assess
• the fitness and propriety of professional trustees, company

managers, auditors and insolvency practitioners.

• the ethical standards of professional trustees, company managers,

auditors and insolvency practitioners

• the approach taken by professional trustees and company

managers to running their businesses.

• compliance by professional trustees, company managers and audit

practitioners with due diligence requirements.

• the quality of audit work and insolvency work.

Ahead of risks Well prepared Acknowledged experts Empowered Skilled staff Focused on public interest outcomes

Competent Effective

Safe Sustained growth and development

Supportive

Targeted regulator Value for money Resources focused on mitigating risks

Summary

Efficient

Accessible and efficient regulator Straight forward to transact business with

Accessible

QUESTION AND ANSWER

Session

Thank you for joining us today.

Don’t forget to sign up to our interactive Authorisation workshop

Financial Services Commission Roadshow December 2014

Published by: the Financial Services Commission PO Box 940 Suite 3, Ground Floor Atlantic Suites Europort Avenue Gibraltar

Photos attributable to gibraltarphotos.com and Javier Amian