Deposit-taking Business Code of Practice

Summary

This is the main body of the JFSC's Code of Practice for Deposit-taking Business, issued under the Banking Business (Jersey) Law 1991 and the Financial Services (Jersey) Law 1998. It sets out seven overarching principles and detailed minimum requirements governing how registered deposit-takers must conduct their business, covering integrity, customer treatment, governance and risk management, transparency, financial resources, cooperation with the JFSC, and prohibitions on misleading statements. It forms one of five parts of the wider Banking Code, alongside separate codes on auditor appointment, financial statements, prudential reporting and declarations of compliance.

• Governance and risk management: Registered persons must maintain adequate corporate governance, internal systems and controls, internal audit, a compliance function (including a Compliance Officer, MLRO and MLCO), record keeping, complaints handling, and staff competence and CPD.
• Financial resources: Registered persons must meet minimum capital requirements, maintain adequate capital and liquidity ratios, and manage Large Exposures, including obtaining JFSC approval for exposures exceeding 25 percent of Agreed Capital Resources (LE25s).
• Openness with the JFSC: Registered persons must deal with the JFSC in an open and cooperative manner, including notifying it in writing of matters such as conflicts between local law and the Code, and agreeing remediation plans for temporary non-compliance.
• Scope: The Code applies to all persons registered under Article 9 of the Banking Law to carry on deposit-taking business, whether Jersey Incorporated Banks (JIBs) or overseas incorporated banks (OIBs) operating through a Jersey branch, including managed banks, and to certain exempt money service business carried on by registered persons.
• Consequences of non-compliance: Failure to comply may lead to increased supervision, conditions of registration, higher capital requirements, directions under the Banking Law or FS(J)L, financial penalties, or revocation of registration, and may be made public.

The Code has been last revised effective 1 April 2026 to reflect Basel III implementation changes to risk-based capital requirements and reverse repo treatment, and consequential amendments addressing the revised Bank (Recovery, Resolution and Depositors' Compensation) (Jersey) Law 2017 framework. Appendices provide detailed guidance on corporate governance, risk management, Large Exposure definitions, and LE25 approval criteria.

Key obligations

• Registered persons must maintain minimum capital requirements and adequate capital and liquidity ratios on an ongoing basis.
• Registered persons must obtain JFSC approval before or in respect of any Large Exposure exceeding 25 percent of Agreed Capital Resources (LE25), including submitting a free format letter and the prescribed Large Exposure Approval form.
• Registered persons must submit the Banking Prudential Reporting Return to the JFSC on a quarterly basis.
• Registered persons must maintain a compliance function, including a Compliance Officer, Money Laundering Reporting Officer and Money Laundering Compliance Officer, and adequate internal audit, record keeping and complaints-handling arrangements.
• Registered persons must notify the JFSC in writing where local law or regulation prevents an overseas branch of a JIB from complying with the Code, together with proposals to resolve the conflict.
• Where full compliance cannot be achieved for a temporary period, a registered person must agree a plan of action with timescales with the JFSC in advance.
• Registered persons must deal with the JFSC in an open and cooperative manner and must not make misleading, false or deceptive statements.

Applies to

registered persons carrying on deposit-taking business, Jersey Incorporated Banks (JIBs), overseas incorporated banks (OIBs)/Jersey Branches, managed banks, persons carrying on money service business as exempt persons under the Financial Services (Money Service Business (Exemptions)) (Jersey) Order 2007

Deadlines

• quarterly: Registered persons must submit the Banking Prudential Reporting Return (prudential return) to the JFSC on a quarterly basis.
• 1 April 2026: Last revision date of the Code, incorporating Basel III capital/liquidity changes and consequential amendments reflecting the revised Bank (Recovery, Resolution and Depositors' Compensation) (Jersey) Law 2017 framework.

Related documents

• This document is made under Banking Business (Jersey) Law 1991
• This document is made under Financial Services (Jersey) Law 1998