Jersey Financial Services Commission Logo

PERSONAL QUESTIONNAIRE - FAQ

Application and Scope

 

Q1: Do I need to be approved to hold a senior position in a financial services business operating in Jersey?

The Jersey Financial Services Commission (JFSC) is required by relevant legislation to consider the fitness and propriety of persons seeking to fulfil certain senior positions.

Although, the JFSC does not “approve” individuals for senior positions, having considered the fitness and propriety of a person the JFSC must decide whether it wishes to object to their appointment to the proposed position(s).

The relevant legislation is Article 12B of the Collective Investment Funds (Jersey) Law 1988 (CIF(J)L), Articles 14 and 24 of the Banking Business (Jersey) Law 1991 (BB(J)L), Article 23 of the Insurance Business (Jersey) Law 1996 (IB(J)L) and Article 14 of
the Financial Services (Jersey) Law 1998 (FS(J)L) (together referred to as the Regulatory Laws).

 

Q2: How do I know if the position I intend to occupy is within the scope of the “certain senior positions” and that the JFSC therefore needs to consider my fitness and propriety?

The JFSC generally refers to these individuals as Principal Persons and Key Persons. In all instances the nature of the role will define whether the individual is a Principal Person or Key Person.

Question 4.10 of the electronic Personal Questionnaire contains a dropdown list of positions, guidance on these positions can be found by clicking here.

The following provides further information regarding Jersey Regulatory Laws and the terms Principal Person and Key Person.

Principal Person:

(a)

Where the financial services businesses is regulated under either the FS(J)L (fund services business, general insurance mediation business, investment business, money service business and trust company business) or CIF(J)L (recognized funds and their functionaries and certified funds), Principal Person is defined in Article 1 of the respective law.

(b)

Where the financial services business is registered to carry on deposit-taking business under the BB(J)L, the JFSC considers Principal Person to mean a director, controller or manager as defined in Article 1 of the BB(J)L AND the senior officer as defined by the Banking Business (General Provisions) (Jersey) Order 2002. It should be noted that, whilst individuals occupying these roles may still be referred to as Principal Persons, following a change of practice in late 2018, letters of no objection will refer specifically to director, controller, manager and/or senior officer as applicable.

(c)

Where the financial services business has been granted a Category B permit to carry on insurance business under the IB(J)L, the JFSC considers Principal Person to mean a chief executive and shareholder controller as defined in Article 1 of the IB(J)L, the actuary appointed in line with Article 25 of the IB(J)L AND any person intending to act as a director.

For the avoidance of doubt, no individual that meets the definition of a Principal Person or Key Person in respect of a Category A permit holder (IB(J)L) is required to complete either the electronic Personal Questionnaire or a paper equivalent.

Key Person is a defined term in each of the Regulatory Laws.

The term covers individuals fulfilling any one of the following three roles:

(a)

Compliance Officer (as appointed in accordance with the relevant Codes of Practice, issued by the JFSC);

(b)

Money Laundering Compliance Officer (a compliance officer appointed in accordance with Article 7 of the Money Laundering (Jersey) Order 2008); or

(c)

Money Laundering Reporting Officer (a reporting officer appointed in accordance with Article 8 of the Money laundering (Jersey) Order 2008).

 

Q3: What is “span of control”?

The JFSC is required to consider a number of factors when determining whether an applicant (e.g. company or partnership)
is fit and proper to conduct financial services business. The structure and organisation of the applicant is a key factor in the JFSC’s determination. In this context, span of control is a regulatory term utilised to describe the individuals that have effective day-to-day control and oversight of a registered person’s operations in Jersey.

For some financial services businesses the JFSC has detailed, in the Codes of Practice, the minimum number of individuals which the JFSC considers are necessary for the applicant to demonstrate adequate structure and organisation. In the majority of cases the span of control will comprise individuals that meet the definition of a Principal Person however, there are circumstances where this will not be the case, most notably where the registered person operates in Jersey as a branch of a company incorporated in another jurisdiction.

In the limited circumstances where the span of control requirements will not be, or are not, met by individuals that are Principal Persons, the JFSC may assess an individual for the purpose of the applicant meeting the structure and organisation element of the fit and proper test. This assessment is conducted via the Personal Questionnaire process and you will be notified of the outcome of this assessment via letter.

 

Q4: Why does the JFSC need to consider my fitness and propriety?

Apart from the legal requirement that the JFSC decide whether it wishes to object to your appointment, in making the assessment of your fitness and propriety the JFSC is following one of the guiding principles for the fulfilment of its functions, namely “the reduction of risk to the public of financial loss due to dishonesty, incompetence or malpractice by or the financial unsoundness of persons carrying on the business of financial services in or from within Jersey”.

 

Q5: Why do I have to provide information to the JFSC using the electronic Personal Questionnaire?

The JFSC’s decision on whether to object to you becoming a Principal Person or Key Person needs to take into account, among other things, your integrity, competence and financial standing. The electronic Personal Questionnaire has been designed with this requirement in mind and aims to capture information from you in an organised manner to assist the JFSC form an opinion in these areas.

 

Q6: Can my employer complete and submit the electronic Personal Questionnaire on my behalf?

The Regulatory Laws differ with respect to who is required to notify the JFSC of your proposed appointment, however, in practice, the Commission has a strong preference to communicate directly with you.

The electronic Personal Questionnaire has been designed to reflect the JFSC’s preference and, given the nature of the information being requested, considers that the process will be completed more efficiently by direct communication with you.

 

Q7: Does the JFSC have to complete its assessment and issue its “no objection” letter before I can take up my position?

Not in all cases.

Generally, the JFSC must have completed its assessment and you must be in receipt of a “no objection” letter before taking
up your position.

However, with respect to Principal Persons and Key Persons for a financial services business carrying on insurance business notification to the JFSC may be made within 14 days of the individual commencing their role.

In addition, the JFSC recognises that there will be limited circumstances where prior notification of your intention to become a Principal Person or Key Person may not be possible. In such cases, you should contact the JFSC as soon as possible to detail the circumstances and agree next steps.

 

Q8: I intend to act as the Money Laundering Compliance Officer or Money Laundering Reporting Officer for a Registered Person operating in Jersey, and am confused as the Regulatory Laws and the Money Laundering (Jersey) Order 2008 require me to communicate with the JFSC regarding this appointment, what should I do?

You should complete and submit the electronic Personal Questionnaire as this has been designed to satisfy the notification of appointment requirements of Articles 7 and 8 respectively of the Money Laundering (Jersey) Order 2008 and the requirements of
the Regulatory Laws in respect of Key Persons.

 

Q9: I have seen references to a “Registered Person”, what does this mean?

For the purposes of the electronic Personal Questionnaire “Registered Person” includes any legal person who has applied to, or who has been granted permission by, the JFSC to undertake a financial services business that falls to be regulated under one of the Regulatory Laws.

For the avoidance of doubt, the following financial services businesses are Registered Persons in the context of the electronic Personal Questionnaire:

(a) a certified fund, as defined in Article 1 of the CIF(J)L

(b) deposit-taking business, as defined in Article 3 of the BB(J)L

(c) fund services business, as described in Article 2(10) of the FS(J)L

(d) general insurance mediation business, as described in Article 2(7) of the FS(J)L

(e) insurance business, encompasses the following defined terms from Article 1 of the IB(J)L: “general business”, “long-term business” and “insurance”

(f) investment business, as described in Article 2(2) of the FS(J)L

(g) money service business, as described in Article 2(9) of the FS(J)L

(h) recognized funds and their functionaries

(i) trust company business, as described in Article 2(3) of the FS(J)L

< Back to contents