PRESS RELEASE 19 June
Position Paper on Amendments to Regulatory Legislation
The Commission has today published a Position Paper providing
notification of proposed amendments to Regulatory Legislation
in preparation for the forthcoming assessment by the International
Monetary Fund (“IMF”) of the
Island’s regulatory framework.
Jersey, along with the other Crown Dependencies of Guernsey
and the Isle of Man, was last assessed by the IMF in 2002/2003
and the resultant report published in October 2003. It is
currently expected that each of the Crown Dependencies will
be re-assessed in the second quarter of 2008.
In the assessment, the Island’s regulatory framework
will be assessed against the relevant international regulatory
standards. The assessment will consider legislation, Codes
of Practice, policy statements and guidance notes, the practical
implementation of the framework by the Commission (and other
relevant agencies) – including resources that are available,
and input provided by Industry.
One of the themes to emerge from recent IMF assessments is
the importance that assessors will place on the practical
implementation of legislation and the effectiveness of the
Commission’s processes and procedures.
As a precursor to the Island’s 2008 IMF assessment,
the Commission has undertaken a comprehensive self assessment
exercise - reviewing the Island’s regulatory framework,
including practical application of the framework, against
the standards set by the international regulatory bodies.
The Position Paper sets out necessary changes to Regulatory
Laws (primary legislation) and associated Orders (secondary
legislation) that have been identified by that self assessment.
However, the Position Paper does not consider the results
of the self assessment against the Financial Action Task Force
40 Recommendations and 9 Special Recommendations. These are
being addressed separately by the Island-wide Anti-money Laundering/Countering
the Financing of Terrorism Strategy Group (“AML/CFT
Strategy Group”). In addition, the Commission
will also be consulting in the near future on proposed changes
to Codes of Practice and issuing a position paper in respect
of amendments to policy statements and guidance notes towards
the end of the year.
The assessment by the IMF will be important for a number
of reasons. As already noted, the Island will not be assessed
again for another five years, and will not have an opportunity
to address any deficiencies that may be highlighted by the
IMF in the interim period.
Another reason is that external commentators will use the
assessment as the basis for determining whether Jersey is
a place with which to do business. The IMF report is also
likely to be a factor in future discussions on the development
of Jersey’s international personality.
The Commission has issued a position paper rather than a
full consultation paper on the basis that the timetable, in
which to facilitate changes to primary legislation, is extremely
tight and dictates that law drafting instructions are currently
being placed with the Law Draftsman’s Office.
Many of the elements of the legislative process are outside
of the Commission’s control. These include the need
for a Ministerial Decision, States debate and approval of
the amendments by the Privy Council. Nevertheless, to place
itself in the position of being able to demonstrate practical
application of the regulatory framework, the amendments to
the Regulatory Laws need to finalised and submitted to the
Minister for Economic Development by mid-September 2007.
However, feedback on the policy proposals in this paper is
actively welcomed in advance of consultation on the subsequent
draft legislative text, which will occur through two separate
consultation papers. The first will provide interested parties
with an opportunity to comment on the changes proposed to
Regulatory Laws whilst the second will provide the same opportunity
in relation to Orders. Whilst the actual publication date
for the consultation papers is not fixed, it is currently
anticipated that the draft legislation relating to the Regulatory
Laws will be issued for consultation towards the end of July,
with the draft legislation on Orders following slightly later
in the year.
As a consequence of the reduced comment period that will
be available on the amending legislation, the Commission intends
to hold informal interactive briefing sessions either at,
or close to, the point of publishing the consultation paper
or changes proposed to Regulatory Laws.
The Position Paper can be viewed on the Commission’s
and paper copies obtained from the Commission’s reception
area or the Jersey Library.
- Ends -
For further information please contact: -
Andrew Le Brun,
Director, International & Policy
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822065
Fax: + 44 (0) 1534 822001
Notes to Editors
1. “Regulatory Laws” is a collective term used
to describe the following laws:
• Banking Business Law (Jersey) Law 1991
• Collective Investment Funds (Jersey) Law 1988
• Financial Services (Jersey) Law 1998
• Insurance Business Law (Jersey) Law 1996
2. The Island’s AML/CFT Strategy Group is chaired by
the Chief Executive to the Council of Ministers and comprises
officers from the following Government Departments and agencies:
the Chief Minister’s Department, the Economic Development
Department, the Law Officers’ Department, the Joint
Financial Crimes Unit, the Jersey Financial Services Commission,
and the Shadow Gambling Commission.