Civil financial penalties - Principal Persons - 26 October 2018
On 26 October 2018 the Financial Services Commission (Amendment No.7) (Jersey) Law 2018 came into force.
This amending law extends the JFSC’s civil financial penalties regime to principal persons where a significant and material contravention of a Code of Practice by a registered person* was:
- committed with the consent or connivance of, or is attributable to neglect on the part of a principal person, or
- aided, abetted, counselled or procured by a principal person.
In the most serious cases a penalty of up to £400,000 may be imposed on a principal person.
The extension of the civil financial penalties regime is not retrospective. A financial penalty on a principal person may only be imposed if the relevant Code of Practice contravention by the associated registered person occurred on, or after, 26 October 2018 - or it is a contravention that occurred before 26 October 2018 but continued after that date.
* “registered person” has the meaning set out in Article 1 of the Financial Services Commission (Jersey) Law 1998, namely:
- a registered person within the meaning of the Banking Business (Jersey) Law 1991;
- a permit holder within the meaning of the Insurance Business (Jersey) Law 1996 other than the holder of a Category A permit (within the meaning of Article 5(2) of that Law);
- a registered person within the meaning of the Financial Services (Jersey) Law 1998, other than a person registered under that Law to conduct general insurance mediation business falling within Class R or Class S as set out in the Schedule to the Financial Services (Financial Services Business) (Jersey) Order 2009;
- a service provider within the meaning of Regulation 2 of the Alternative Investment Funds (Jersey) Regulations 2012.