PRESS RELEASE 7 November 2012
COMMISSION PLANS TO INCREASE INVESTOR PROTECTION
The Jersey Financial Services Commission today publishes its final proposals in relation to the qualification and remuneration of financial advisers. The new requirements are to take effect from 1 January 2014 – a year after the corresponding changes introduced in the United Kingdom by “the Review of Financial Advice”.
The highlights of the changes (which apply to advice given in or from within Jersey) are:
- a ban on commission payments for advice to Jersey-resident retail clients; and
- a requirement for advisers to hold certain qualifications if they are to advise retail clients.
Fuller details of the changes are set out in the Feedback Paper. The Feedback Paper includes a definition of Professional Client – that is, a client who is not a retail client. The test of whether a client can be treated as a “Professional Client” (if he or she agrees) is not purely mechanical - in order to be able to treat a client as a “Professional Client” the adviser must carry out an assessment of the client and the client must agree in writing to be treated as a Professional Client.
Commenting on the changes, John Harris, Director General of the Jersey Financial Services Commission, said “The new regime will enhance protection for the most vulnerable consumers of financial services – but it also gives freedom for knowledgeable clients to agree with their advisers arrangements that are suitable to their needs. We have consulted extensively in finalising our approach. Our proposals strike a fair balance between the interests of all relevant parties and we believe that they will be well received”.
Full details are set out in the Commission’s feedback paper, which can be viewed by clicking here.
- Ends -
For further information please contact: -
Mike Jones - Deputy Director, Securities
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822172
Fax: + 44 (0) 1534 822002
NOTES TO EDITORS
The Commission has published further information on its consumer education website - Protect Your Money – that sets out the impact of the changes for Jersey residents who are retail clients of financial advisers in Jersey, which can be accessed by clicking here.