Financial Services (Jersey) Law 1998

Summary

This is Jersey's principal statute establishing the regulatory regime for financial service business overseen by the Jersey Financial Services Commission (JFSC). It defines what counts as financial service business (investment business, fund services business, AIF services business, trust company business, money service business and general insurance mediation business), prohibits carrying on such business without registration, and sets out the Commission's powers of registration, supervision, investigation and enforcement.

• Registration regime: Establishes the requirement to register with the JFSC before carrying on financial service business, the process for applying, refusing or revoking registration, and conditions attached to registration.
• Ongoing notification duties: Requires registered persons to notify the Commission of changes in principal persons, key persons (compliance officer, money laundering compliance officer, money laundering reporting officer), shareholdings or LLC interests, and to display registration certificates and conditions.
• Supervisory and enforcement powers: Gives the Commission powers to issue Codes of Practice, direct how client assets and trust company business assets are held, issue directions and injunctions, make public statements, exercise powers of intervention, and require information and documents, including through investigations and entry/search of premises.
• Confidentiality and cooperation: Restricts disclosure of information obtained by the Commission, sets out permitted disclosures, and requires cooperation with relevant supervisory authorities and disclosure by auditors/approved professionals in specified circumstances.
• Market abuse offences: Creates offences relating to insider dealing, market manipulation and the provision of misleading information in relation to securities dealing.

The Law also contains schedules defining investments, exemptions from registration for specified categories of activity or person, classes of general insurance business, and transitional provisions for businesses that were operating before certain amendments took effect. It has been amended numerous times since 1998, with the version shown reflecting amendments in force from 11 December 2024.

Key obligations

• Persons must not carry on financial service business in or from Jersey unless registered under the Law (Article 7).
• Registered persons must notify the Commission of any change of principal person, key person, shareholding or LLC interest (Article 14).
• Registered persons must display their registration certificate and any conditions of registration (Article 11A).
• Registered persons must comply with applicable Codes of Practice issued by the Commission (Article 19).
• Registered persons must safeguard client assets and trust company business assets in accordance with Commission requirements (Articles 20 and 21).
• Persons must supply information and documents to the Commission when required and must not supply false information or fail to supply required information (Articles 28 and 32).
• Auditors and approved professionals must communicate certain matters to the Commission as required under Article 18.
• Persons must cooperate with Commission investigations and must not obstruct them (Articles 33 to 35).
• Persons dealing in securities must not engage in insider dealing, market manipulation or provide misleading information (Part 3A).

Applies to

persons carrying on financial service business, investment businesses, fund services businesses, AIF services businesses, trust company businesses, money service businesses, general insurance mediation businesses, registered persons, auditors and approved professionals

Related documents

• Financial Services (Financial Service Business) (Jersey) Order 2009 amends this document
• Financial Services (Trust Company Business (Exemptions No. 4)) (Jersey) Order 2001 amends this document
• Financial Services (Investment Business (Client Assets)) (Amendment No. 2) (Jersey) Order 2022 is made under this document
• Financial Services (General Insurance Mediation Business (Client Assets)) (Jersey) Order 2005 is made under this document
• Banking Business (Accounts, Auditors and Reports) (Jersey) Order 2023 is made under this document
• Financial Services (Advertising) (Jersey) Order 2008 is made under this document
• Financial Services (Investment Business (Overseas Persons – Exemption)) (Jersey) Order 2001 is made under this document
• Financial Services (Trust Company Business (Exemptions No. 4)) (Jersey) Order 2001 is made under this document
• Trust Company Business Code of Practice is made under this document
• Financial Services (Appointment of Manager) (Jersey) Order 2008 is made under this document
• General Insurance Mediation Business Code of Practice is made under this document
• Financial Services (Trust Company Business (Exemptions)) (Jersey) Order 2000 is made under this document
• Fund Services Business Code of Practice is made under this document
• Investment Business Code of Practice is made under this document
• Financial Services (Trust Company Business (Exemptions No. 5)) (Jersey) Order 2001 is made under this document
• Financial Services (Fund Services Business (Accounts, Audits and Reports)) (Jersey) Order 2007 is made under this document
• Financial Services (Investment Business (Client Assets)) (Jersey) Order 2001 is made under this document
• Financial Services (Investment Business (Insurance Business – Exemption)) (Jersey) Order 2001 is made under this document
• Financial Services (Financial Service Business) (Jersey) Order 2009 is made under this document
• Money Service Business Code of Practice is made under this document
• Financial Services (Investment Business (Restricted Investment Business – Exemption)) (Jersey) Order 2001 is made under this document
• Financial Services (Trust Company Business (Exemptions No. 2)) (Jersey) Order 2000 is made under this document
• Financial Services (Trust Company Business (Assets – Customer Money)) (Jersey) Order 2000 is made under this document
• Financial Services (Investment Business (Special Purpose Investment Business – Exemption)) (Jersey) Order 2001 is made under this document
• Financial Services (General Insurance Mediation Business (Accounts, Audits, Reports and Solvency)) (Jersey) Order 2005 is made under this document
• Financial Services (Trust Company Business (Exemptions No. 7)) (Jersey) Order 2001 is made under this document
• Financial Services (Money Service Business (Exemptions)) (Jersey) Order 2007 is made under this document
• Financial Services (Trust Company Business (Exemptions No. 3)) (Jersey) Order 2001 is made under this document
• Collective Investment Funds (Certified Funds – Prospectuses) (Jersey) Order 2012 is made under this document
• Financial Services (Trust Company and Investment Business (Accounts, Audits and Reports)) (Jersey) Order 2007 is made under this document
• Financial Services (Collective Investment Funds) (Exemptions) (Jersey) Order 2007 is made under this document
• Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 2014 is made under this document
• Financial Services (Trust Company Business (Exemptions No. 6)) (Jersey) Order 2001 is made under this document
• Financial Services (General Insurance Mediation Business (Exemptions)) (Jersey) Order 2005 is made under this document
• Certified Funds Code of Practice - Schedule 3 (Jersey Listed Fund Guide) is made under this document
• Code of Practice for Alternative Investment Funds and AIF Services Business – EU/EEA regime is made under this document
• Deposit-taking Business Code of Practice is made under this document
• Code of Practice for Alternative Investment Funds and AIF Services Business – UK regime is made under this document
• Certified Funds Code of Practice - Schedule 2 (Jersey Expert Fund Guide) is made under this document