Read our feedback on the Compliance function: Key Persons regime green paper
On 11 October 2024, we issued a green paper on the Compliance function: Key Persons Regime in response to industry’s challenges in resourcing Key Person roles.
This green paper explored three options:
- option 1: status quo – retain employment and residency requirements for Key Persons with enhancements
- option 2: retain the employment connection of Key Persons and remove the Jersey residency requirement
- option 3: retain the Jersey residency requirement for Key Persons and remove the Key Person employment requirement
We sought feedback on these options, including their impact on recruitment, industry benefits, FATF compliance, and associated risks. We also considered the role of RegTech.
Feedback received
The consultation closed on 6 December 2024, with 47 responses. 55% of respondents who indicated a preference selected option 1. The feedback suggested no need for major reforms, as resourcing pressures have subsided. We will focus on agreed changes to improve the business environment.
Next steps: Key Persons priority enhancements
We will explore several priority enhancements:
- outsourcing policy: review its interaction with the Key Persons regime and the compliance function in general
- derogation and variance guidance: provide guidance for time-limited derogations and variance applications
- Key Person liability: engage with industry on key person liability in enforcement actions
- RegTech guidance: share feedback and review existing guidance to support adoption
As part of the Government of Jersey's financial services competitiveness programme, we will collaborate with the government and other key stakeholders to consider any strategic or long-term solutions to drive positive outcomes, increase the ease of doing business, and enhance cooperation.
Read our Feedback on the Compliance function: Key Persons regime green paper here.