Deposit-taking Business Code of Practice - Financial Statements

Summary

This is one of five parts of the JFSC's Code of Practice for Deposit-taking Business, dealing specifically with financial statements. It applies to all Registered Persons under the Banking Business (Jersey) Law 1991, distinguishing between Jersey Incorporated Banks (JIBs) and Overseas Incorporated Banks (OIBs), and sets out both statutory requirements (from the Banking Business (Accounts, Auditors and Reports) (Jersey) Order 2023, or BAO) and additional Code requirements. It has been in force since 23 February 2024.

• Preparation and audit: Every Registered Person must prepare financial statements and a directors' report for each financial year end, have them audited under specified standards (FRC, IFAC, or another agreed standard), and provide the auditor's signed report to the entity.
• JIB accounting standards: JIBs' financial statements must give a true and fair view and be prepared under UK FRC or IASB standards, with full related party disclosures (no group exemption permitted).
• Filing deadlines: JIBs must submit financial statements, directors' reports and auditor reports to the JFSC within 3 months of the accounting period end; OIBs within 4 months.
• Parent company statements: Unless it is the ultimate parent, a JIB or OIB must also provide audited unconsolidated financial statements of each parent and audited consolidated financial statements of its ultimate parent, within 4 months of year end.
• Internal governance (JIBs): JIBs must have robust, documented processes for producing financial statements and directors' reports, assign responsibility for sign-off, oversight, and addressing auditor issues, and retain related records as business records.
• Exemptions: The JFSC may waive or vary requirements on request under Article 17 of the BAO, provided no customer or client is likely to be prejudiced.

The Code also references Basel Committee guidance on external audits of banks as relevant guidance for JIBs, particularly regarding audit committees or, where none exists, the board.

Key obligations

• Every Registered Person must prepare financial statements and a directors' report for each financial year end.
• JIBs must prepare financial statements giving a true and fair view under UK FRC or IASB accounting standards, with full related party disclosures including intra-group transactions.
• A JIB's financial statements must be signed by at least one director; an OIB's must be signed by the number of persons required under its home jurisdiction's laws, but not less than one.
• JIBs and OIBs must provide their financial statements and directors' reports to their appointed auditor, who must audit them under FRC, IFAC, or another agreed standard and provide a signed report.
• JIBs must submit financial statements, directors' reports and auditor reports to the JFSC within 3 months of the end of the accounting period; OIBs must do so within 4 months.
• JIBs and OIBs must provide any other relevant report prepared during the financial year addressing a relevant matter, at the same time as the financial statements.
• Unless the ultimate parent in its group, a JIB or OIB must provide audited unconsolidated financial statements of each parent and audited consolidated financial statements of its ultimate parent within 4 months of year end.
• JIBs must maintain robust, documented processes for producing financial statements and directors' reports, with defined responsibility for sign off, oversight, and addressing auditor issues, and retain related business records.

Applies to

Registered Persons, Jersey Incorporated Banks (JIBs), Overseas Incorporated Banks (OIBs)

Deadlines

• within 3 months of the end of the accounting period: JIBs must provide financial statements, directors' report and JIB Auditor's reports to the JFSC.
• within 4 months of the end of the accounting period: OIBs must provide financial statements, directors' report and OIB Auditor's reports to the JFSC.
• within 4 months of the end of the year to which the financial statements relate: JIBs and OIBs (unless ultimate parent) must provide audited unconsolidated financial statements of each parent and audited consolidated financial statements of the ultimate parent.
• 23 February 2024: Effective date of the Financial Statements Code for all Registered Persons.

Related documents

• This document is made under Banking Business (Jersey) Law 1991