Financial Services (Jersey) Law 1998

Summary

The Financial Services (Jersey) Law 1998 is the primary framework law under which the Jersey Financial Services Commission (JFSC) registers and supervises firms carrying on financial service business in or from Jersey. It covers investment business, trust company business, fund services business, AIF services business, money service business and general insurance mediation business, and also sets out offences relating to insider dealing, market manipulation and misleading information.

• Registration: Prohibits carrying on unauthorised financial service business and sets out the application, grant, refusal, conditions and revocation process for registration with the Commission.
• Ongoing supervision: Gives the Commission powers over principal persons, key persons and shareholders, including objection rights and notification duties on change of control or key officeholders.
• Accounts, auditors and client assets: Allows Orders on accounts and auditors, requires auditor communication with the Commission, and imposes rules protecting client assets and trust company business assets.
• Enforcement powers: Empowers the Commission to issue directions, injunctions, remedial orders, public statements, and powers of intervention, and to investigate, enter and search premises, and require information and documents from registered and other persons.
• Market abuse offences: Creates offences of insider dealing, market manipulation and providing misleading information in relation to securities, with associated defences and territorial scope provisions.
• Exemptions: Schedule 2 sets out categories of business and persons exempted from registration requirements across investment business, trust company business, general insurance mediation business, fund services business and AIF services business.

As a consolidated, continuously amended Law, it functions as the backbone regulatory statute for most Jersey-regulated financial services firms rather than a one-off notice; specific compliance obligations (e.g. codes of practice, reporting formats) are generally set out in subordinate Codes of Practice and Orders made under this Law.

Key obligations

• Persons must not carry on financial service business in or from Jersey unless registered under the Law (or exempted).
• Registered persons must notify the Commission of any change of principal person, key person, shareholding or LLC interest.
• Registered persons must display their registration certificate and any conditions of registration as required.
• Auditors and approved professionals engaged by registered persons must communicate certain matters to the Commission.
• Registered persons must safeguard client assets and trust company business assets in accordance with the Law and applicable Codes of Practice.
• Persons must comply with directions, remedial orders and requirements to supply information issued by the Commission, and must not supply false information or fail to supply required information.
• Registered persons must comply with applicable Codes of Practice issued under Article 19.

Applies to

investment business firms, trust company business providers, fund services business providers, AIF services business providers, money service businesses, general insurance mediation business providers, auditors and approved professionals of registered persons

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