Jersey trust company and fund services businesses demonstrate effective oversight and sound risk management
We worked with 11 trust company and fund services businesses on discovery visits to inform our prudential work and help us understand how firms in this sector oversee the sustainability of their business models.
Overall, we observed positive practices that support effective oversight and sound risk management.
Our aim
These visits were designed to help us understand:
how boards and directors oversee financial planning and resilience
the opportunities and challenges for non-bank business models in Jersey
how firms assess liquidity and comply with adjusted net liquid asset requirements
how boards consider risks from adverse scenarios in business planning and assess resilience under market stress conditions
Key themes for reflection
We have grouped our observations into five themes, with examples of good practice for each:
liquidity management and adjusted net liquid assets
assurance and information flow to boards
governance and board oversight
concentration risk
financial resilience and forward-looking analysis
Next step
We encourage boards and senior management to review this feedback paper and reflect on whether the themes are relevant to their firm’s own arrangements.
As part of future supervisory engagement, we will:
embed the themes outlined in this feedback into our day-to-day supervisory activity, proportionate to a firm’s business model and risk profile
continue engaging with industry bodies to broaden our understanding and support shared learning across the sector
engage with external auditors and advisors to explore how existing assurance work can better support firms’ own assessment of financial resilience without adding unnecessary cost
offer targeted workshops and thematic discussions to support, where relevant