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Sensitive Activities

Jersey Incorporated Companies

Control of Borrowing (Jersey) Order, 1958 as amended policy in relation to applications by Jersey Companies for consent to the issue of shares

The Jersey Financial Services Commission (the "Commission") in considering applications made under the Control of Borrowing (Jersey) Order 1958, as amended, for consents to issue shares by companies registered under the provisions of the Companies (Jersey) Law 1991 will decide whether to grant a consent either conditionally or subject to conditions or refuse a consent having regard to the need to protect the integrity of the Island in commercial and financial matters and the best economic interests of the Island on the basis of:-

(i) certain details, more particularly set out in the application form in force from time to time and approved by the Commission for that purpose, being completed fully and accurately containing inter alia, details concerning the authorised share capital, ultimate beneficial ownership (including date(s) of birth) and proposed activities of the company, and declarations must be included to the effect that the proposed ultimate beneficial owners have not been involved in any insolvency or similar proceedings. Such declarations shall be signed by an entity authorised to conduct by way of business, trust company business as defined in Article 2(4)(a) of the Financial Services (Jersey) Law 1998;

(ii) separate, more comprehensive information being provided if the company, or any subsidiary, affiliate or associated company thereof, is to undertake any business or service which the Commission has prescribed from time to time as "sensitive" or so determined at its discretion. The following are examples of sensitive activities which have been established as a matter of policy by the Commission:-

* banking;

* deposit taking;

* insurance;

* investment management or advisory services;

* financial consultancy;

* trustee or nominee services;

* share and commodity dealing and broking;

* corporate director services;

* underwriting;

* asset management;

* money broking;

* general insurance broking;

* life assurance agency services;

* certain trading activities which are quasi-investments such as container leasing, sale or leasing of overseas realty development, time share activities;

* any dealings in arms or the supply of technology or spare parts connected with defence;

* provision of audit and accountancy services;

* provision of professional legal services;

* holiday or travel companies which intend to deal direct with the "retail" customer;

* non-resident companies offering tuition either directly or by correspondence leading to a "diploma" on completion, which are not "recognised" by an Education Authority;

* any company which is to be "exempt" for income tax purposes and is to have a wide share ownership, or is to be listed on a stock exchange or dealt in on the unlisted or over-the-counter markets;

* a company which is to sell goods by "mail order";

* companies which manufacture, market or sell unlicensed pharmaceutical goods, particularly to third world countries.

The Commission is fully aware that the development of business via Jersey companies using the internet is a growing phenomenon. The list of sensitive activities applies equally to e-commerce related activities. There may well however, be other internet based activities which are not on the current list eg. gambling. Advice should therefore be sought for the incorporation of any company involved with internet activities which are not covered by the current list.

1991

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