PRESS RELEASE 16 July 2012
CONSULTATION ON MISCELLANEOUS AMENDMENTS TO REGULATORY LEGISLATION
Today, the Jersey Financial Services Commission (the “Commission”) has issued a consultation paper which contains proposals for legislation changes on a variety of topics that have emerged over recent years as a result of the use and continuous review of the regulatory process undertaken by the Commission.
Some of the amendments affect only one particular item of legislation. However, a secondary objective of the Commission is to enhance the level of consistency in the legislation across all sectors of the Industry. To that end, where the need for change has arisen in one area, the opportunity has often been taken to consider, and amend, as appropriate, the corresponding provisions in the other laws.
Although the changes are being made to a range of laws and subordinate legislation, they will be introduced in the form of two statutes –
The Financial Regulation (Miscellaneous Provisions No. 2) (Jersey) Law 201-,
which will make amendments to the following legislation:
- Collective Investment Funds (Jersey) Law 1988;
- Bankruptcy (Désastre) (Jersey) Law 1990;
- Banking Business (Jersey) Law 1991;
- Investment Business (Jersey) Law 1996;
- Financial Services (Jersey) Law 1998;
- Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008; and
- Community Provisions (Wire Transfers) (Jersey) Regulations 2007.
The Financial Regulation (Miscellaneous Provisions) (Jersey) Order 201-,
which will make amendments to various Orders:
- Banking Business (Appointment of a Manager) (Jersey) Order 2008;
- Collective Investment Funds (Appointment of a Manager) (Jersey) Order 2008;
- Financial Services (Appointment of a Manager) (Jersey) Order 2008;
- Financial Services (Financial Service Business) (Jersey) Order 2009;
- Insurance Business (Solvency Margin) (Jersey) Order 1996; and
- Insurance Business (Appointment of a Manager) (Jersey) Order 2008.
The nature and purpose of the proposed changes may be classified in the following ways –
- Enhancements to the Commission’s powers to act in certain circumstances: examples include the powers to investigate matters of concern; and the ability to act in support of another regulator.
- Clarification of an existing provision.
- Redefinition of the criteria applicable to a class of financial services business.
- Extension of powers granted to the Court (e.g. to make orders for restitution in certain circumstances).
- Provision of additional powers for the States to make Regulations.
- Amendments to achieve (or maintain) consistency across all the laws.
- Amendments to the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, following its initial period on the statute books.
- Ancillary minor drafting corrections that arose when preparing the other changes.
Each of the amendments has the potential to affect any regulated business or individual associated with a regulated business. However, in most cases, the effect will only arise in exceptional circumstances, such as when enforcement action of one kind or another is necessary.
The only amendment likely to have an immediate impact is the redefinition of the description of Class ‘O’ financial service business: this change may mean that some regulated businesses may no longer qualify for the lighter touch regulation that is a feature of this Class.
The consultation paper, which includes a draft of the two items of amending legislation, can be viewed on the Commission’s website by clicking here.
Hard copies of the consultation paper are also available on request.
Responses to the consultation should be sent to the Commission by 31 October 2012
- Ends -
For further information please contact: -
Andrew Le Brun - Director, Office of the Director General
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822002
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. It is also responsible for overseeing compliance with legislation to counter money laundering and the financing of terrorism.
Class ‘O’ was designed to accommodate firms, typically accountancy firms, whose activities include some financial services that fall within the definition of trust company business in Articles 2(3) and 2(4) of the Financial Services (Jersey) Law 1998, but are generally ancillary to their principal business, and are available only to clients resident in Jersey for income tax purposes. The proposed amendments do not alter the original objectives of this class, but revise the way in which the criteria are expressed to remove misunderstandings in interpretation that have arisen since the class was introduced.