Financial Services Commission (Jersey) Law 1998

Summary

This is the founding statute of the Jersey Financial Services Commission (JFSC), establishing it as an independent body corporate responsible for supervising and developing financial services in Jersey. It sets out the Commission's functions, powers, funding, and a civil financial penalty regime, and defines the categories of regulated entities and individuals that fall within its remit.

• Scope of supervision: Covers registered persons under the Banking Business (Jersey) Law 1991, Insurance Business (Jersey) Law 1996, Financial Services (Jersey) Law 1998, Collective Investment Funds (Jersey) Law 1988, Alternative Investment Funds (Jersey) Regulations 2012, and supervised persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008.
• Commission powers: Gives the Commission general powers to do anything incidental to its functions, including requiring supervised entities to supply information, answer questions, and allow Commission officers to enter their premises as part of routine examinations.
• Fees and funding: Empowers the Commission to publish fees for its regulatory functions and to fund itself through fees, grants, borrowing and investment of surplus funds.
• Civil financial penalties: Articles 21A to 21G create a civil financial penalty regime allowing the Commission to impose penalties on registered persons, principal persons and key persons (including money laundering reporting officers) for specified contraventions, with notification, restriction, late payment surcharge, appeal and proceeds-of-penalty provisions.
• Senior management functions: Allows the Commission to designate 'senior management functions' at registered persons by published notice where the role carries a risk of serious consequences for the firm or for business or other interests in Jersey.

The Law is primarily constitutional and organisational rather than a day-to-day compliance rulebook, but it underpins the Commission's supervisory and enforcement powers over all Jersey-regulated financial services businesses and provides the legal basis for fees, information requests, inspections and civil penalties that firms encounter in practice.

Key obligations

• Supervised entities must supply information in the format and at the times specified by the Commission as part of routine examinations.
• Supervised entities must provide answers to questions asked by the Commission during routine examinations.
• Supervised entities must allow officers or agents of the Commission to enter their premises as part of routine examinations.
• Registered persons, principal persons and key persons may be liable to pay civil financial penalties imposed by the Commission under Article 21A for specified contraventions, subject to the notification and appeal provisions in Articles 21C and 21F.
• Persons subject to a civil financial penalty must pay it or face a late payment surcharge and enforcement action under Article 21E.

Applies to

banks (registered deposit-taking businesses under the Banking Business (Jersey) Law 1991), insurance permit holders under the Insurance Business (Jersey) Law 1996, registered persons under the Financial Services (Jersey) Law 1998 (investment, trust and company administration businesses), collective investment fund functionaries and certificate holders under the Collective Investment Funds (Jersey) Law 1988, alternative investment fund service providers under the Alternative Investment Funds (Jersey) Regulations 2012, supervised persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, principal persons, key persons and money laundering reporting officers of registered persons

Related documents

• Financial Services Commission (Financial Penalties) (Jersey) Order 2015 is made under this document