Service notice: Our website, myJFSC and the Securities Interests Register will be unavailable between 18:00 on 13 April and 02:00 on 14 April due to scheduled maintenance.
Consultation on amended outsourcing policy
Consultation on amended outsourcing policy Consultation on the Proposed Amended Outsourcing Policy
A consultation on proposals in relation to the Outsourcing Policy to:
› amend the scope of the policy regarding outsourced activity;
› define key terms and include a glossary to remove ambiguity;
› remove the distinction between delegation and outsourcing in relation to certified funds and fund services businesses;
› make changes to the core principles to provide clarity and align with international standards;
› provide additional guidance including FAQs;
› restructure the format of the policy into core principles, guidance and FAQs; and
› make minor updating and consequential changes.
Issued: 18 July 2016
Consultation no. 6 2016
Thomas Cowsill
Head of Technical
Jersey Finance Limited
4th Floor, Sir Walter Raleigh House
48-50 Esplanade
St Helier
Jersey
JE2 3QB
Telephone:+44 (0) 1534 836000
Facsimile:+44 (0) 1534 836001
Email:thomas.cowsill@jerseyfinance.je
Alternatively, responses may be sent directly to Kate Berry at the JFSC by 30 September 2016. If you require any assistance, clarification or wish to discuss any aspect of the proposal prior to formulating a response, it is of course appropriate to contact the JFSC.
The JFSC contact is:
Kate Berry
Senior Adviser, Policy
Jersey Financial Services Commission
PO Box 267
14-18 Castle Street
St Helier
Jersey
JE4 8TP
Telephone:+44 (0) 1534 822162
Email:k.berry@jerseyfsc.org
It is the policy of the JFSC to make the content of all responses available for public inspection unless specifically requested otherwise.
It is the policy of Jersey Finance (unless otherwise requested or agreed) to collate all responses and share them verbatim with the JFSC on an anonymised basis (with reference made only to the type of respondent, e.g. individual, law firm, trust company etc.) This collated, anonymised response will, typically, be placed in Jersey Finance’s permanent electronic archive which is currently open to all Jersey Finance members.
|
Amended Outsourcing Policy |
means the proposed amended outsourcing policy and guidance notes attached at Appendix B of this consultation paper |
|
AML/ CFT |
means anti-money laundering and countering the financing of terrorism |
|
AML/ CFT Handbook |
means the Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism for Regulated Financial Services Business (as may be amended by the Commission, from time to time)[i] |
|
Banking Code |
means the Code of Practice for Deposit-taking Business |
|
Banking Law |
means the Banking Business (Jersey) Law, 1991 |
|
Certified Fund |
means a fund issued with a certificate pursuant to the Collective Investment Funds (Jersey) Law 1988 |
|
Certified Funds Code |
means the Code of Practice for Certified Funds |
|
Client |
means a customer, investor or other Person in respect of whom a Registered Person is Licensed to provide products or services |
|
COBO Conditions |
means any conditions imposed by the Commission pursuant to its granting of a COBO Consent |
|
COBO Consent |
means a consent issued by the Commission pursuant to the Control of Borrowing (Jersey) Order, 1958 |
|
Codes of Practice |
means, collectively, the › Banking Code; › Certified Funds Code; › FSB Code; › GIMB Code; › IB Code; › Insurance Code; › MSB Code; › TCB Code |
|
Collective Investment Funds Law |
means the Collective Investment Funds (Jersey) Law, 1988 |
|
Commission |
means the Jersey Financial Services Commission |
|
Commission Law |
means the Financial Services Commission (Jersey) Law 1998 |
|
Companies Law |
means the Companies (Jersey) Law, 1991 |
|
EU |
means European Union |
|
FAQs |
means frequently asked questions |
|
Fit and Proper |
means that a Person would meet the standards required to be fit and proper to be Licensed or, continue to be Licensed (as applicable) pursuant to the requirements of the relevant Regulatory Law[iii] |
|
FSB Code |
means the Code of Practice for Fund Services Business |
|
FSC Amendment Law |
means the Financial Services Commission (Amendment No. 6) (Jersey) Law 2015. |
|
FSJL |
means the Financial Services (Jersey) Law, 1998 |
|
Fund Services Business |
means the Regulated Activity, involving the provision of services in relation to certain types of funds, which is described in Article 2(10) of the Financial Services (Jersey) Law, 1998 |
|
GIMB Code |
means the Code of Practice for General Insurance Mediation Business |
|
Governing Body |
means the body within a Registered Person that is considered to exercise ultimate control over it. Generally, this will be (i) the directors of a company, protected cell company or the relevant cells of an incorporated cell company; (ii) the trustee of a unit trust; (iii) the general partner of a limited partnership, separate limited partnership or incorporated limited partnership; or the partners of a limited liability partnership. In the case of a sole trader, the Governing Body will be the sole trader |
|
Group |
means a body corporate that would be defined as a subsidiary, wholly-owned subsidiary or holding body of another body corporate, under the Companies Law irrespective of the jurisdiction of the company |
|
IB Code |
means the Code of Practice for Investment Business |
|
Insurance Code |
means the Code of Practice for Insurance Business |
|
Insurance Law |
means the Insurance Business (Jersey) Law, 1996 |
|
Jersey Finance |
means Jersey Finance Limited |
|
Licence |
means the authorisation by the JFSC to conduct Regulated Activity[iv] |
|
Managed Entity |
means, in the context of MoME Arrangements, an entity that is managed by a MoME |
|
Material Activity |
means any business activities which are, are part of, or are likely to have a material impact upon the carrying out of any Regulated Activity |
|
MoME |
means, in the context of MoME Arrangements, a manager of a Managed Entity |
|
MoME Arrangements |
means arrangements described in the MoME Guidance Note and pursuant to which a MoME falls within class ZK of Fund Services Business by providing certain services to a Managed Entity |
|
MoME Guidance Note |
means the guidance issued by the Commission and contained in the document entitled: Guidance Note For a Manager of a Managed Entity (a “MoME”) and Certain Managed Entities (as may be amended by the Commission, from time to time)[v] |
|
Money Laundering Order |
means the Money Laundering (Jersey) Order, 2008 |
|
MSB Code |
means the Code of Practice for Money Service Business |
|
OCIF Guide |
means the guide which is Schedule 4 to the Certified Fund Code called the Guide to Jersey Open-Ended Unclassified Collective Investment Funds Offered to the General Public (as amended by the JFSC, from time to time)[vi] |
|
Offer Document |
means a prospectus or other offering document inviting a Person to become an investor of a fund |
|
Outsourcing |
means an arrangement of any form between a Registered Person and a Service Provider by which the Service Provider performs any Material Activity that would otherwise be undertaken by the Registered Person |
|
Outsourcing Notification |
means a notification as detailed in paragraph 4.5.4 of the Amended Outsourcing Policy |
|
Outsourcing Policy |
means the Policy Statement and Guidance Notes on: (1)Outsourcing; and (2)Delegation by Jersey Certified Funds and Fund Services Businesses Published by the Commission in May 2011. |
|
Person |
means any natural or legal person (including a body of persons corporate or unincorporated) |
|
Registered Person |
means a Person that is Licensed or holds a permit or certificate, as applicable, under one or more of the Regulatory Laws |
|
Regulated Activity |
means activity conducted pursuant to the Regulated Laws, in respect of which a Person is Licensed |
|
Regulatory Laws |
means the Banking Law, the Collective Investment Funds Law, the FSJL, and the Insurance Law |
|
Service Provider |
means a Person to whom a Registered Person Outsources any Material Activities |
|
Sub-contractor |
means a Person to whom a Service Provider transfers the carrying out of any Material Activity which was Outsourced to the Service Provider |
|
Sub-Outsourcing |
means an arrangement of any form between a Service Provider and Sub-contractor pursuant to which the Sub-contractor performs any Material Activity that would otherwise be undertaken by the Service Provider |
|
TCB Code |
means the Code of Practice for Trust Company Business |
Interpretation
In the Consultation Paper, unless the contrary intention appears:
- words in the singular shall include the plural and words in the plural shall include the singular.
- the word “include” indicates a non-exhaustive list.
- grammatical variations of words to which definitions are assigned shall be construed in accordance with the definitions.
- references to legal or regulatory requirements shall, unless the context provides otherwise, refer to such legal or regulatory requirements as may be amended from time to time.
1 Executive Summary
1.1.1 The Outsourcing Policy is issued by the Commission in relation to the Regulatory Laws to set regulatory requirements that Registered Persons must comply with.
1.1.2 The Commission is responsible for the supervision of Regulated Activity conducted in or from within Jersey. That responsibility is discharged pursuant to, amongst other things, the Regulatory Laws. Under the Regulatory Laws, Persons that conduct Regulated Activity must be Licensed. Upon Licensing, such Persons will be Registered Persons.
1.1.3 Compliance with the Outsourcing Policy may be taken into account by the Commission when considering whether a person is deemed Fit and Proper.
1.1.4 A failure to comply with the Outsourcing Policy can result in regulatory action being taken against a Registered Person. The Codes of Practice state that Registered Persons must comply with the Outsourcing Policy. Following the recent enactment of the FSC Amendment Law such regulatory action can now include the imposition by the Commission of a civil financial penalty for significant and material contraventions of a Code.
1.1.5 Jersey Finance requested, on behalf of its members, that the Outsourcing Policy be reviewed, amended and updated. The Amended Outsourcing Policy linked at Appendix B has been developed after consultation with members of a Jersey Finance working party.
1.2.1 The main changes proposed in the Amended Outsourcing Policy are as follows:
1.2.1.1 Amend the scope of the policy to include Outsourced activity (regulated and non-regulated) that has a material impact on Regulated Activity;
1.2.1.2 Removal of the distinction between “delegation” and “outsourcing” as used in the Outsourcing Policy in relation to Certified Funds and Fund Services Businesses;
1.2.1.3 Make changes to the core principles to provide clarity and align with international standards;
1.2.1.4 Define key terms and include a glossary to remove ambiguity, in particular to introduce a definition of “material”;
1.2.1.5 Provide additional guidance, including FAQs;
1.2.1.6 Restructure the format of the policy to separate principles from guidance and the FAQs; and
1.2.1.7 Make minor updating and consequential changes.
1.3.1 The proposals in this consultation paper have the potential to affect all Registered Persons.
2.1.1 The Commission has issued this consultation paper in accordance with Article 8 (3) of the Commission Law under which the Commission “may, in connection with the carrying out of its functions… consult and seek the advice of such persons or bodies whether inside or outside Jersey as it considers appropriate”. In addition, given that relevant Codes of Practice issued by the Commission require Registered Persons to comply with the Commission’s policy on outsourcing - and thus a change to that policy could be considered an indirect change to those Codes - this consultation also serves the purpose of satisfying the provisions in the Regulatory Laws that require the Commission, before revising any Code of Practice, to “[consult] with such Persons or bodies as appear representative of the interests concerned”.
2.2 Responding to the consultation
2.2.1 The Commission invites comments in writing from interested parties on the proposals included in this consultation paper. Where comments are made by an industry body or association, that body or association should also provide a summary of the type of individuals and/or institutions that it represents.
2.2.2 To assist in analysing responses to the consultation paper, respondents are asked to:
2.2.2.1 prioritise comments and to indicate their relative importance; and
2.2.2.2 respond as specifically as possible and, where they refer to costs, to quantify those costs.
2.3.1 The intention is that the Amended Outsourcing Policy in the form shown in Appendix B (subject to the making of any revisions considered necessary as a result of responses to this consultation) will be issued in late Quarter 4 of 2016 and come into force two months later.
3.1.1 The Commission is a statutory body corporate established under the Commission Law. It is responsible for the supervision and development of financial services provided in or from within Jersey.
3.2.1 The Commission Law prescribes that the Commission shall be responsible for:
3.2.1.1 the supervision and development of financial services provided in or from within Jersey;
3.2.1.2 providing the States of Jersey, any Minister or any other public body with reports, advice, assistance and information in relation to any matter connected with financial services;
3.2.1.3 preparing and submitting to Ministers recommendations for the introduction, amendment or replacement of legislation appertaining to financial services, companies and other forms of business structure;
3.2.1.4 such functions in relation to financial services or such incidental or ancillary matters:
› as are required or authorised by or under any enactment, or
› as the States of Jersey may, by Regulations, transfer; and
3.2.1.5 such other functions as are conferred on the Commission by any other Law or enactment.
3.3.1 The Commission’s guiding principles require it to have particular regard to:
3.3.1.1 the reduction of risk to the public of financial loss due to dishonesty, incompetence, malpractice, or the financial unsoundness of Persons carrying on the business of financial services in or from within Jersey;
3.3.1.2 the protection and enhancement of the reputation and integrity of Jersey in commercial and financial matters;
3.3.1.3 the best economic interests of Jersey; and
3.3.1.4 the need to counter financial crime in both Jersey and elsewhere.
4 Proposed Changes to the Outsourcing Policy
4.1.1 This chapter describes, and explains the reasons for, the proposed changes to the Outsourcing Policy.
4.1.2 Appendix B contains the Amended Outsourcing Policy. Because the format of the Outsourcing Policy has been restructured a useful blacklined comparison of the existing policy against the amended policy is not possible. Readers are asked to note that minor typographical or clarificatory changes to the Amended Outsourcing Policy are not described in this consultation paper.
4.1.3 The Commission recognises that Registered Persons may require a lead-in period to update their internal procedures to facilitate compliance with the Amended Outsourcing Policy. In this regard, the Commission’s intention is to provide for the Amended Outsourcing Policy to come into force two months after it is issued.
4.1.4 The Amended Outsourcing Policy does not apply retrospectively.
4.1.5 Question: Do you consider a lead-in period of two months to be adequate? If you do not, please explain why and suggest an alternative time period.
4.2 Scope of the Amended Outsourcing Policy
4.2.1 The Registered Person remains fully responsible and accountable in respect of activity for which it has been Licensed. The Amended Outsourcing Policy makes it clear that the Registered Person remains responsible and accountable for Outsourcing and Sub-outsourcing.
4.2.2 The existing Outsourcing Policy described Outsourced activity as the Outsourcing of any material part of a Registered Person’s regulated function. However, it is clear that Regulated Activity may be impacted significantly by material Outsourced activities that are both regulated and non-regulated.
4.2.3 Registered Persons are ultimately responsible for delivery of their Regulated Activity. Since the Registered Person always remains responsible for their Regulated Activity this draws in non-regulated outsourced activity which, if disrupted, may lead to a Registered Person being unable to deliver its Regulated Activity.
4.2.4 The policy now makes it clear that Material Activity includes material regulated and non-Regulated Activity. See further discussion of the definition of “material” in section 4.4 below.
4.2.5 A list of activities that are not deemed to amount to Outsourcing is provided in the Amended Outsourcing Policy in section 1.4.2.
4.2.6 The Amended Outsourcing Policy expressly removes from its scope, areas which are not appropriate, notably:
(i) MoME Arrangements;
(ii) situations where “reliance” is placed on third parties pursuant to Articles 16 or 16A of the Money Laundering Order; and
(iii) where there is a transfer of activity between a parent and branch (or vice versa) where the parent and branch form a single legal entity.
4.2.7 The appointment of Service Providers to a fund may be outside the scope of the policy if certain conditions are met. This change is as a result of the removal of the distinction between delegation and Outsourcing in relation to Certified Funds and Fund Services Businesses, further discussed in Section 4.3 below.
4.2.8 Question: Do you have any observations or concerns on the scope of the Amended Outsourcing Policy? If you do, please state in detail what your observation or concern is and explain the reason for it.
4.3 Removal of the Distinction between “delegation” and “outsourcing”.
4.3.1 The existing Outsourcing Policy distinguishes between “delegation” and “outsourcing” when applied to Certified Funds and Fund Services Businesses. This distinction was introduced to reflect an historic IOSCO[vii] recommendation. However, it has been the source of considerable confusion.
4.3.2 The Amended Outsourcing Policy removes altogether the concept of “delegation” being different from “outsourcing” altogether. This allows a much simpler approach pursuant to which all Outsourcing arrangements apply the same policy.
4.3.3 The specific issues which may arise in respect of fund authorisation, which were previously the basis for separate “delegation” provisions, are now dealt with in the Scope section. Briefly, this provides that upon establishment of a fund, the appointment by the fund of its Service Providers is not deemed to be Outsourcing if their appointment is clearly disclosed to their investors and to the Commission. This position is consistent with the Commission’s current practice in this area.
4.3.4 Question: Do you have any observations or concerns on the removal of the distinction between delegation and outsourcing as set out in the Amended Outsourcing Policy? If you do, please state in detail what your observation or concern is and explain the reason for it.
4.4 Definition of “Outsourced Activity” and “Material”.
4.4.1 The existing Outsourcing Policy refers to “…outsourcing any material part of its regulated functions…”. There was confusion amongst Registered Persons as to the meaning of “material”. The Amended Outsourcing Policy retains reference to Material Activity in the definition of Outsourcing. As previously stated Material Activity in the Amended Outsourcing Policy includes “business activities which are, are part of, or are likely to have a material impact upon the carrying out of any Regulated Activity” which includes both material regulated and material non-regulated activity. A definition of “Material Activity” has been introduced so that there is a clearer understanding of the circumstances in which the Commission expects compliance with the Amended Outsourcing Policy.
4.4.2 Producing a more prescriptive definition of “material” in the context of “Material Activity” in the Amended Outsourcing Policy is however impractical since what is “material” will very much depend on the particular facts of each case. The Amended Outsourcing Policy provides general guidance as to how the Commission approaches the question of whether Outsourced activity is “material”.
4.4.3 Further guidance is then given, in the FAQs, to assist in interpreting qualitative terms such as “appropriate”, “adequate”, “suitable”, and “effective”.
4.4.4 These amendments, when viewed alongside the wider changes to the Amended Outsourcing Policy as a whole, are intended to provide Registered Persons with a clearer understanding of the Commission’s expectations.
4.4.5 Question: Do you have any observations or concerns on the definitions of “Outsourcing” and “Material Activity” as set out in the Amended Outsourcing Policy? If you do, please state in detail what your observation or concern is and explain the reason for it.
4.5 Changes to Clarify the Wording of the Core Principles.
4.5.1 The wording of the core principles has been amended to provide further clarification as follows:
4.5.2 Original Core Principle No. 1
When a Registered Person Outsources any material part of its regulated functions it must first ensure that the service provider is Fit and Proper and can fulfil the task in a responsible, professional and suitable manner.
4.5.3 New Core Principle No. 1
A Registered Person must satisfy itself at the outset, and on a continuing basis thereafter, that any Service Provider to whom it Outsources any Material Activities is Fit and Proper and will perform the Material Activities in a responsible, professional and suitable manner.
4.5.4 Original Core Principle No. 2
A Registered Person must have a written agreement with the service provider that clearly specifies the terms of engagement and the levels of service to be provided by the service provider.
4.5.5 New Core Principle No. 2
A Registered Person must have in place appropriate written agreements, with any Service Providers to whom it Outsources any Material Activities that clearly specify the terms of engagement and the level of services to be provided by the Service Provider.
4.5.6 Original Core Principle No. 3
A Registered Person must maintain sufficient capacity (i.e. skills and knowledge) to be able to assess whether the outsourced activity is being performed adequately. It must also maintain adequate resources and establish procedures, including compliance plans, to be able to monitor the performance of the service provider.
4.5.7 New Core Principle No. 3
A Registered Person must maintain the (i) capacity; (ii) resources; and (iii) policies and procedures to monitor, assess and ensure that any Material Activities which it has Outsourced are being performed adequately and the Service Provider remains Fit and Proper.
4.5.8 Original Core Principle No. 4
A Registered Person must be able to terminate the outsourcing arrangement and have contingency plans for making alternative arrangements for the performance of the outsourced function.
4.5.9 New Core Principle No. 4
A Registered Person must put in place arrangements that allow it to terminate its Outsourcing arrangements without undue delay and manage the consequences of any such termination appropriately.
4.5.10 Original Core Principle No. 5
A Registered Person must inform the Commission in writing of its intention to outsource any material part of its regulated functions, within a reasonable time prior to the commencement of the Outsourcing arrangement, in order to allow the Commission to consider the proposal and raise any concerns.
4.5.11 New Core Principle No. 5
A Registered Person must provide the Commission with adequate prior written notice of its intention to Outsource any Material Activities or make material changes to any existing Outsourcing arrangements. A Registered Person must not enter into any Outsourcing arrangement (save for contingency arrangements) until it has received prior written confirmation from an officer of the Commission that the Commission has no objection to such Outsourcing arrangements.
4.5.12 Original Core Principle No. 6
Nothing in any outsourcing arrangements should prevent the Commission from exercising its statutory responsibilities. In particular, a Registered Person must ensure that the Commission is able to inspect the books and records (or copies thereof) relating to the outsourced activity upon request and without undue delay, irrespective of whether they are in the hands of the Registered Person or the service provider.
4.5.13 New Core Principle No. 6
Registered Persons must ensure that nothing in any Outsourcing arrangements prevents or restricts the Commission’s ability to exercise the legal or regulatory powers it would otherwise have been able to exercise, in respect of any Registered Persons or Material Activity, had the Outsourcing not taken place.
4.5.14 Question: Noting paragraph 4.4 and the meaning of Material Activity do you have any observations or concerns on the wording of the New Core Principles in the Amended Outsourcing Policy? If you do, please indicate the number of the Core Principle you are commenting on and state in detail what your observation or concern is and explain the reason for it.
4.6.1 The Amended Outsourcing Policy includes FAQs which provide more practical explanations and examples of how the Commission will, in broad terms, seek to apply the Amended Outsourcing Policy.
4.6.2 The FAQs have been drafted to incorporate guidance relating to issues that have been encountered by Industry seeking to comply with the Outsourcing Policy.
4.6.3 The FAQs have been divided into three sections in Part V:
4.6.3.1 General Issues;
4.6.3.2 Particular Core Principles; and
4.6.3.3 Particular Types of Activity.
4.6.4 Question: Do you have any observations or concerns on the proposed FAQs as set out in the Amended Outsourcing Policy? If you do, please indicate the number of the FAQ you are commenting on and state in detail what your observation or concern is and explain the reason for it.
4.7 Guidance on Intra-group Outsourcing
4.7.1 To provide clarification on the Commission’s expectations regarding Intra-Group Outsourcing the Amended Outsourcing Policy contains guidance and related FAQs which are provided in respect of Core Principle 2.
4.7.2 Amendments have also been made to allow reliance on entities within the same Group in respect of shared due diligence; monitoring; and policies, procedures or contingency plans. This amendment is intended to address certain commercial practicalities. However, it is important to note that the FAQs make clear that such reliance can only be placed where (i) the Registered Person complies with applicable legal and regulatory requirements; (ii) it is in the best interests of Clients; and (iii) it does not give rise to any undue risks.
4.7.3 In addition to providing additional guidance, the Commission has also recognised that appropriate written Outsourcing agreements might, in certain circumstances within a Group structure, take the form of framework agreements and service level agreements (or similar arrangements).
4.7.4 However, in granting this concession, the Commission expressly requires that (i) sufficiently robust and clearly documented procedures are in place to protect Client interests; (ii) the other Core Principles are still satisfied; and (iii) arrangements cannot be implemented in order to circumvent the requirements of the Amended Outsourcing Policy.
4.7.5 Question: Do you have any observations or concerns on the approach to Intra-Group Outsourcing as set out in the Amended Outsourcing Policy? If you do, please state in detail what your observation or concern is and explain the reason for it.
4.8 Guidance on Outsourcing Notification Information Requirements and Timeframe.
4.8.1 The Commission’s information requirements for an Outsourcing Notification have been standardised to provide clarity to assist Industry and the Commission.
4.8.2 The Commission will acknowledge receipt of the Outsourcing Notification and will endeavour to respond within 20 business days. The response may:
4.8.2.1 require further action to be taken (such as a request for: a) additional information/documentation and/or b) extra time to consider the notification); or
4.8.2.2 be a no objection.
A Registered Person should not proceed until they have received in writing a “no objection” from the Commission.
4.8.3 Question: Do you have any observations or concerns on the Outsourcing Notification information requirements, timeframe and the confirmation that a Registered Person cannot proceed until a “No objection” is received in writing from the Commission as set out in the Amended Outsourcing Policy? If you do, please state in detail what your observation or concern is and explain the reason for it.
4.9 Structural changes to the Outsourcing Policy
4.9.1 There was a perceived lack of clarity by Industry as to what was required because it was felt that there was insufficient separation between what was policy and what was guidance. Therefore the Amended Outsourcing Policy is divided into 5 parts:
4.9.1.1 Part I explains the purpose, structure, key regulatory implications and scope of the Amended Outsourcing Policy;
4.9.1.2 Part II sets out the basic premises underlying the Commission’s Amended Outsourcing Policy;
4.9.1.3 Part III sets out the Core Principles the Commission expects Registered Persons to satisfy in complying with the Amended Outsourcing Policy;
4.9.1.4 Part IV provides guidance, in general terms, as to how Registered Persons may satisfy these requirements; and
4.9.1.5 Part V provides further general assistance to Registered Persons seeking to understand the Commission’s expectations of them by providing responses to various FAQs.
5.1.1 It is not expected that the proposed changes to the Outsourcing Policy will result in Registered Persons incurring any substantive additional costs.
5.2.1 Save for staff costs incurred in carrying out this consultation and the publication of the final Amended Outsourcing Policy in due course and consequential amendments required, no other substantive expenses are expected to be incurred by the Commission.
5.3.1 The proposals in this paper will improve the clarity of the Outsourcing Policy for Registered Persons.
|
Reference |
Question |
List of representative bodies and other persons who will be sent this consultation paper
› Association of English Solicitors Practising in Jersey
› Chartered Institute for Securities & Investment, Jersey branch
› Institute of Chartered Secretaries and Administrators, Jersey branch
› Institute of Directors – Jersey branch
› Jersey Association of Directors and Officers
› Jersey Association of Trust Companies
› Jersey Bankers’ Association
› Jersey Chamber of Commerce and Industry Incorporated
› Jersey Compliance Officers Association
› Jersey Finance Limited
› Jersey Funds Association
› Jersey International Insurance Association
› Jersey Society of Chartered and Certified Accountants
› Law Society of Jersey
› Society of Trust and Estates Practitioners (STEP), Jersey branch
Proposed Amended Outsourcing Policy
(The Policy has discrete page numbering)
Please click on the link below to view the proposed Amended Outsourcing Policy.
[i] https://www.jerseyfsc.org/industry/financial-crime/aml-cft-handbooks/aml-cft-handbook-for-regulated-financial-services-business/
[ii] Codes of Practice may be prepared and issued; or revised by the Commission pursuant to, the Regulatory Laws, and the Proceeds of Crime (Supervisory Bodies) (Jersey) Law, 2008 (in respect of AML/ CFT requirements).
[iii] See for example Article 9 of the FSJL. Note also that the Commission provides guidance as to, amongst other things, the criteria upon which it bases decisions as to whether such requirements are satisfied in the relevant Licensing Policy.
https://www.jerseyfsc.org/industry/guidance-and-policy/
[iv] Such authorisation being: (i) registration under the Banking Law; (ii) grant of a permit or certificate under the Collective Investment Funds Law; (iii) registration under the FSJL or (iv) grant of a permit under the Insurance Law
[v] https://www.jerseyfsc.org/industry/guidance-and-policy/
[vi] https://www.jerseyfsc.org/industry/codes-of-practice/
[vii] IOSCO means the International Organization of Securities Commissions.