2024 Annual Validations

As the new year begins, so does the annual calendar for regulatory and legal filings, the first being the Annual Validation for Guernsey Companies. Notable changes have been made by the Guernsey Registry that must be considered prior to beginning the filing process. The changes bring an increased emphasis on adherence to filing requirements and increased penalties for late submissions.

One of the significant changes is the requirement to submit a filing to appoint an individual as an Authorised Filer for the Company. Previously, individuals could submit filings on behalf of Companies if they had the Company PIN. However, as of 2024, for Guernsey Companies not administered by corporate service providers, only Authorised Filers are permitted to submit filings on behalf of Guernsey incorporated companies. Authorised filer filings must be submitted with sufficient time prior to the Annual Validation deadline for the Guernsey Registry to consider approval of the filing. There is currently a 24-hour turnaround time for the approval of authorised filer filings, however, this is likely to be extended as we near the end of February. In addition, we recommend that several authorised filers are appointed for the Company to minimise risk should an authorised filer be unable to make any filings due to any reason. Each individual that is intended to be appointed as Authorised Filer must submit their own filing through their Guernsey Registry portal account. Guernsey Registry portal accounts can be set up through the website: https://portal.guernseyregistry.com

The appointment of Authorised Filers must be done with Board approval and an authorisation letter signed by a Director of the Company must be submitted through the Guernsey Registry portal when making the filing. The mandate aims to streamline the filing process, enhancing efficiency and accuracy of submissions as Authorised Filers should be equipped with the requisite knowledge and expertise. Furthermore, the Guernsey Registry will be able to maintain tighter control over the integrity of the data on Guernsey’s Company Register.

Guernsey companies should ensure timely liaison with their Authorised Filer(s) to ensure a smooth submission process. Failure to do so may result in non-compliance, potentially exposing Guernsey companies to reputational and financial risks.

In addition to the requirement for Authorised Filers, Guernsey companies should be mindful of the financial penalties associated with late filing of Annual Validations. To encourage Guernsey companies to recognise the importance of the timely submission of filings, the Guernsey Registry has implemented stricter measures to deter delays in Annual Validations. Fines are up to ￡1,000 for non-regulated companies and ￡1,800 for Trust or Company Service Providers. Delays in Annual Validations disrupt regulatory processes and damage transparency and accountability within the industry. By adding more severe penalties, the Guernsey Registry aims to foster a culture of compliance among Guernsey companies. Guernsey Companies can take proactive measures to mitigate the risk of penalties while protecting their reputation.

Alongside the amendments to the penalties and addition of Authorised Filers, Guernsey companies should also be aware of the enhanced disclosures regarding high value assets and commercial relationships. Guernsey companies must now disclose whether they hold any high value assets exceeding ￡5,000,000.00 in value. This serves to enhance transparency around the ownership and management of significant assets held.

Finally, for some Guernsey Companies, the Annual Validation may feature additional questions regarding their commercial business relationships, partnerships, and transactions.

Should you require any assistance with your Company Annual Validation, please get in contact. Our Company Secretarial team have a wealth of experience and knowledge, being well equipped to assist.