Consultation on amendments to the JFSC's civil financial penalty methodology for registered persons (No. 3 2026)

Summary

This is a JFSC consultation paper proposing amendments to the civil financial penalty methodology used to calculate penalties imposed on registered persons. It responds to a recent legislative change reinstating maximum penalty caps and also proposes targeted guidance updates based on operational experience. The natural persons methodology is not covered here and will be consulted on separately.

• Consequential amendments: Update the methodology's summary tables to reflect maximum penalties reinstated for Bands 1, 2 and 2A by the Financial Services Commission (Financial Penalties) (Jersey) Amendment Order 2026, which came into force 12 March 2026; Band 3 remains uncapped.
• Best economic interests of Jersey: Add express reference to this guiding principle, clarifying it is not scored at Step 1 but may be reflected at Step 11 (potential financial consequences) or through exercise of discretion, where impacts are material, reasonably foreseeable, evidenced and causally linked.
• Enhanced step guidance: Fuller guidance proposed at Step 2 (knowledge of contravention), Step 3 (voluntary reporting), Step 4 (rectification and prevention of recurrence) and Step 11 (potential financial consequences), with some matters moved from the residual Step 5 aggravating/mitigating factors step to dedicated steps.
• Step 5 adjustment range reduced: Proposed reduction of the aggravating/mitigating factors adjustment at Step 5 from plus or minus 50% to plus or minus 25%.
• Settlement discounts: Retains the existing staged discount framework (up to 50% at Stage 1, up to 25% at Stage 2, up to 5% at Stage 3) but adds clearer guidance on how discounts within these maximums are assessed case by case.
• Worked examples removed: Proposal to remove worked examples from appendices given the fuller guidance now included in the considerations sections.

The JFSC invites feedback from registered persons subject to the civil financial penalties regime, professional advisers involved in enforcement matters, and other interested stakeholders, via six specific consultation questions. Responses must be submitted by 4:00pm on 23 April 2026, after which the JFSC will publish a feedback paper and finalise the updated methodology.

Key obligations

• Stakeholders wishing to respond must submit comments by 4:00pm on 23 April 2026 through the JFSC's consultation form
• Industry bodies or trade associations submitting a response should also provide a summary of the type of individuals or institutions they represent
• Responses will be treated as non-confidential unless the respondent specifically requests confidential treatment

Applies to

registered persons subject to the JFSC's civil financial penalties regime, professional advisers acting for persons involved in JFSC enforcement matters, other stakeholders with an interest in the JFSC's enforcement framework and published methodology

Deadlines

• 4:00pm on 23 April 2026: Deadline to submit consultation responses on the proposed amendments to the registered persons civil financial penalty methodology