JFSC Revises Insurance Business Licensing Policy

by Jason Gorringe, Tax-News.com, London

15 February 2011

The Jersey Financial Services Commission has issued an updated version of the Licensing Policy in respect of those activities that require a permit under the Insurance Business (Jersey) Law 1996. The Licensing Policy was previously issued on April 7, 2009.

The update to the policy with respect to entities under the Insurance Business (Jersey) Law 1996 "IB(J)L", follows the revision in December 17, 2010, of the Licensing Policy in respect of those activities that were require licensing under the Financial Services (Jersey) Law 1998 "FS(J)L. The changes to this Policy were in relation to the additional risks posed to the island by higher risk jurisdictions.

The changes to the IB(J)L Licensing Policy are similar to those made to the FS(J)L Policy, with the substantive changes located as follows:

• Section 4 - “General” and Section 11 - “Transparency of Ownership”, which set out the Commission’s requirements in terms of the ownership of an insurance business;
• Section 9 - “Structure” and Section 10 - “Systems and Controls”, which set out the requirements where an applicant intends to provide services to customers who are themselves connected with a higher risk jurisdiction; and lastly,
• Section 12 - “Managed Insurance Businesses”, which sets out the factors that the Commission will consider in the context of an application from an applicant wishing to operate as a managed insurance business.

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