GUERNSEY Law and Practice Contributed by: Matthew Brehaut and Tom Carey, Carey Olsen
tation of new payment rails, provided that pay - ment processors obtain all necessary Guernsey regulatory licences. The type of licence that is most likely to be required in this context is a licence under the LCF Law as “financial firm business” . Payment processors are likely to be performing the finan - cial firm business of “operating a money service business” (see 2.2 Regulatory Regime ). Analysis would need to be carried out on a case-by-case basis as to whether any such licensing require - ment would be triggered in the circumstances. 5.2 Regulation of Cross-Border Payments and Remittances See 2.2 Regulatory Regime and 5.1 Payment Processors’ Use of Payment Rails . If a payment processor carries out any of the following activi - ties by way of business in or from within Guern- sey, it will generally require a licence under the LCF Law as “financial firm business” for: • operating “money service business” (a busi - ness providing money or value transmission services, currency exchange ( bureau de change ) and cheque cashing); • facilitating or transmitting money or value through an informal money or value transfer system or network; • issuing, redeeming, managing or administer - ing means of payment; • providing financial guarantees or commit - ments; • money broking; • money changing; • providing services for the safekeeping or administration of cash or liquid securities; and • accepting repayable funds other than depos - its.
Please note that, as Guernsey is not a member of the EU, the EU Payment Services Directive does not apply here. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms There are no restrictions upon the types of mar - ketplaces and trading platforms that may be used, provided that the regulatory requirements are met in each case. Marketplaces and trading platforms are regulated under different Guernsey laws depending upon the activity being under - taken. POI Law The POI Law regulates the restricted activity of “operating an investment exchange” , which means providing a facility ‒ whether by elec - tronic means or otherwise ‒ for the orderly trad - ing of securities (or for the listing of securities for the purpose of trading) by members of the investment exchange. Persons performing such restricted activities will be required to obtain a licence under the POI Law and adhere to the rules and regulations promulgated thereunder. LCF Law As mentioned in 2.2 Regulatory Regime , the LCF Law imposes a licensing requirement for the operation of a peer-to-peer platform, the opera - tion of a crowdfunding platform, and the pro - vision of alternative non-bank credit or finance intermediation. 6.2 Regulation of Different Asset Classes The Guernsey regulatory regime applicable to asset classes is broadly split into two.
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