PRESS RELEASE 30 March 2010
CONSULTATION PAPER: PROPOSED CHANGES TO SECONDARY LEGISLATION IN RESPECT OF TRUST COMPANY BUSINESS EXEMPTIONS
This Consultation Paper will be of interest to:
Those individuals that act as directors, on a professional basis, of companies that they do not beneficially own; and
Those individuals that are currently relying on the connected persons exemption.
The Commission has today published a Consultation Paper in respect of natural persons undertaking the activity of acting as a director under the Financial Services (Jersey) Law 1998 (the “FS(J)L”).
The Consultation Paper proposes the following two changes in respect of Trust Company Business exemptions:-
- To present a new exemption that introduces “de–minimis” provisions which will allow an individual to hold a maximum of six directorships (in addition to any that would otherwise be exempt) before the need to register under the FS(J)L is triggered.
- To restrict the scope of the ‘Connected Persons’ exemption contained in the note to paragraph 1 of the Schedule to the Financial Services (Trust Company Business (Exemptions No 4)) (Jersey) Order 2000.
In addition, although not subject to the consultation process, the Commission has taken this opportunity to re-publish the Guidance Note (first published in February 2009) entitled “Natural Persons undertaking the Activity of Acting as a Director under the Financial Services (Jersey) Law 1998”. Amendments to the Guidance Note published last year are reflected in sections 3.26 (the interpretation of the term “in or from within Jersey” in Article 7(1)(a) of the FS(J)L and 4.2.5 (providing directorship services for local trading companies).
A copy of the consultation paper can be downloaded from the Commission’s Website at www.jerseyfsc.org and paper copies obtained from the Commission’s reception area of the Jersey Library.
- Ends -
For further information please contact: -
Debbie Sebire - Director, Trust Company Business
Tel: + 44 (0) 1534 822113
Fax: + 44 (0) 1534 822002
Notes to Editors:
- The ‘Connected Persons’ exemption was created to exempt individuals that are directors of companies that they beneficially own (either solely or jointly with an associate e.g. a spouse), where the provision of the directorship service is undertaken by way of a formal agreement or contract.
- The Commission believes that the ‘Connected Persons’ exemption, as currently drafted, does not fully reflect the intention described in 1. above.