PRESS RELEASE 3 April 2012
Today the Commission has published a consultation paper proposing that a power be introduced to allow the Commission to impose civil penalties on specified registered persons for serious, uncorrected or recurring breaches of the Codes of Practice.
Breaches of the Codes of Practice are often identified by way of supervisory examinations. It is not intended that civil penalties would apply to breaches of the Codes of Practice that are:
- inadvertent breaches, which do not display any of the elements of a serious breach;
- subject to post examination monitoring; and
- remedied to the Commission’s satisfaction, without recurrence.
There are a number of reasons why the introduction of such a power is viewed as appropriate by the Commission, namely to:
- act as a further deterrent to those registered persons who persistently or seriously breach the Codes of Practice;
- encourage prompt and consistent remediation of any breaches of the Codes of Practice;
- provide the Commission with more scope and flexibility to respond to varying severities of non-compliant behaviour by registered persons; and
- provide the Commission with an additional sanction. The Commission’s range of sanctions has fallen behind that of other regulatory bodies such as the UK Financial Services Authority, the Guernsey Financial Services Commission and, locally, the Jersey Competition Regulatory Authority. This was highlighted by the International Monetary Fund in its 2008 Assessment of Jersey.
There is no intention to use the introduction of a civil penalties regime to raise revenue generally across Industry. For the vast majority of registered persons there would be little or no additional costs resulting from the introduction of a civil penalties regime, as it is proposed that the regime would be focussed on non-compliant registered persons. The current proposals do not extend to individuals who direct and/or control a registered person’s business, but this will be given consideration at a future date.
The consultation paper is available on the Commission’s website by clicking here.
The consultation period is until 29 June 2012.
- Ends -
For further information please contact: -
Barry Faudemer - Director, Enforcement
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822000
Fax: + 44 (0) 1534 822001
NOTES TO EDITORS
The Commission is responsible for the regulation, supervision and development of the financial services industry in the Island of Jersey for banking, collective investment funds, fund services business, insurance business, general insurance mediation business, investment business, money service business, and trust and company service providers.
The Codes of Practice issued by the Commission where it is proposed that registered persons would, with certain exemptions, be subject to the civil penalty regime cover the following sectors:
- deposit-taking business;
- funds services business;
- general insurance mediation business;
- insurance business;
- investment business;
- money service business; and
- trust company business.