Jersey FSC Issues First Tranche Of Trust Company Licences

by Amanda Banks, Tax-news.com, London

20 June 2001

The Jersey Financial Services Commission has issued the first tranche of registration certificates in respect of trust company business under the Financial Services (Jersey) Law 1998. To date, fourteen businesses have received registration certificates in respect of 111 separate entities. 'It is a significant day for us and the culmination of two years concentrated work from both the Commission and the industry,' said Richard Pratt, Director General of the Commission.

The Law came fully into force on the 2nd February after a period of intense consultation, including Steering Group meetings and tailored seminars, on all aspects of the Law including the Orders and the Codes of Practice. From that date it became illegal to conduct business without a licence; it was also the closing date for applications for existing firms seeking to continue doing business until their review was completed. From May 27, 2001, all legal provisions became applicable with the exception of professional requirements which have until November 4, 2005 to go into effect.

Helen Hatton, Deputy Director General of the Commission, who has led the implementation process said: 'I am delighted to reach this milestone. When the Law came fully into force, we had applications from 228 businesses consisting of 1,144 entities. Each of those applications must be carefully reviewed to ensure that the requirements of the Law and the Codes of Practice are met. In particular, the businesses must satisfy the Commission of their "fit and proper" status according to the obligations placed on the Commission under Article 8 of the Law.'

She added: 'With over 1000 separate entities included within the 228 business who made applications, and over 1000 separate principal persons, the review process was always going to be a major task. The Commission would certainly expect at least a year to elapse before all of them have been completed. For now, however, the Commission is pleased that the first tranche is ready.'

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