Consultation on data for risk-based supervision (No. 7 2017)

Summary

This is a JFSC consultation paper (No. 7 2017) proposing a framework of ongoing data reporting requirements to support the JFSC's risk based approach to supervision. It sets out, at a high level, the types of data the JFSC intends to collect from regulated businesses (called Affected Businesses) to assess the footprint, likelihood and impact of risk events, and invites industry feedback before any requirements are implemented.

• Footprint data: Initial collection and periodic update of data such as customer numbers, customer value, activities, staff, turnover, and (for banks) deposit liabilities and DCS exposures.
• Customer data: Data on customers and underlying beneficial owners, tailored by sector (banking, insurance, investment/trust/fund services business, other) plus transaction data.
• Further data collection: A broader set of potential key risk indicators covering governance, staffing, compliance findings, financial soundness, conduct (complaints, PII claims, litigation) and financial crime indicators (SARs, screening, frozen accounts, production orders).
• Differentiated impact: Banks (BB(J)L) would face the most comprehensive reporting; certain FS(J)L and IB(J)L registrants face significant but less comprehensive requirements; other relevant persons (e.g. under CIF(J)L or Supervisory Bodies Law) face the lowest reporting burden.

The paper is explicitly a consultation, not a final rule; it describes what data is intended to be collected but not yet how, and states that further consultation will occur before implementation, particularly on the footprint and customer data areas addressed in Sections 6 and 7. No new binding obligations take effect from this document itself.

Applies to

Banks registered under the Banking Business (Jersey) Law 1991, Persons registered under the Financial Services (Jersey) Law 1998, Persons registered under the Insurance Business (Jersey) Law 1996, Persons registered under the Collective Investment Funds (Jersey) Law 1988, Relevant persons under the Money Laundering (Jersey) Order 2008, Supervised Persons under the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008, Businesses registered to conduct General Insurance Mediation Business

Deadlines

• 31 October 2017: Deadline for responses to the consultation to be sent to the JFSC (David Fisher) or, for industry-coordinated responses, to Jersey Finance (Peggy Gielen).