Jersey Updates Licensing Of Financial Services

by Amanda Banks, Tax-News.com, London

22 December 2010

The Jersey Financial Services Commission on December 17 issued an updated version of its licensing policy applicable to entities that are require to be registered under the Financial Services (Jersey) Law 1998.

The Financial Services (Jersey) Law is the primary legislation for the regulation and supervision of five financial sectors in the island, namely:

• Fund Services Business;
• General Insurance Mediation Business;
• Investment Business;
• Money Service Business; and,
• Trust Company Business.

The changes to the Licensing Policy are in relation to the additional risks posed to the island by higher risk jurisdictions.

The substantive changes are located as follows:

• Section 4 - “General” and Section 11 - “Transparency”, which set out the Commission’s requirements in terms of the ownership of a financial services 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 or for whom structures are established that will engage in activities with such jurisdictions.
• Section 12 - “Managed 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 business.

The updated licensing policy has been made available on the FSC's website.

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