Under the notice, the requirement to hold a credit business licence in accordance with Part II of the LCF Law is disapplied and the following do not require a licence under Part II of the LCF Law:
I. Persons who extend credit to family members .
II. Entities which extend credit to family members, where that entity is wholly owned by related family members (whether or not that credit is extended to the owners of that entity)
III. Entities which extend credit to their registered directors, registered partners, registered shareholders, or beneficial owners. Note shareholder loans will only qualify for the exemption where it is clear that the borrowers are bona fide shareholders of the entity i.e., that the shareholding has not been created solely for the purpose of the extension of credit.
IV. Entities which extend credit to their employees.
V. Guernsey trustees who extend credit to named beneficiaries of the trust from which the credit is sourced.
VI. Lombard lending, which is carried out by persons holding licences under another regulatory law, where lending is secured against marketable securities (of which, cash as a marketable security may represent no more than 50% of the total value of the loan made). Note this disapplication only applies where lending is to individuals who are High Net Worth individuals as defined in the Commission’s Lending, Credit and Finance Rules.
VII. Hiring or leasing arrangements where such arrangements are not hire purchase agreements or other arrangements to purchase goods.
VIII. Secured lending where the security is held against real property which is not situated in the Bailiwick of Guernsey and is not the borrower’s residence.
IX. Secured lending where the security is held against real property which is situated in the Bailiwick of Guernsey and is not the borrower’s residence.
X. Insurance intermediaries, licensed under the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, and offering insurance payable in instalments, under finance agreements, where the credit facility is an arrangement made directly with the insurance provider.
XI. Appointed retailers who provide credit facilities, through a single credit provider and subject to a written agreement with that credit provider, for goods and services offered by that retailer.
XII. Appointed motor traders who provide credit facilities, which are simple repayment loans, through a single credit provider and subject to a written agreement with that credit provider, for goods and services offered by that motor trader. Note that this disapplication will only be available where simple repayment loans are offered provided that the total amount of credit extended, through the motor trader, does not exceed £250,000 per annum.
 In this note "persons" includes legal persons.
 In this case those falling under the definition of "family members" are set out at Appendix 1 (originally set out as part of the States of Guernsey Guidance on Housing).
 Where "beneficial owners" has the definition given to it under paragraph 22 of Schedule 3 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999
 "Employees" means an individual who has entered into or who works under (or, where the employment has ceased, who worked under) a contract of employment, following the definition set out in the Protection of Investors (Bailiwick of Guernsey) Law, 2020