Consultation Paper No. 4 2021: Decision-Making Process

Summary

This is a JFSC consultation paper seeking feedback on proposed changes to the process the Commission follows when it takes administrative action that could lead to a regulatory sanction (such as a public statement, civil financial penalty, or director/officer ban). It explains perceived inefficiencies in the current four stage Decision-Making Process (DMP), issued in 2019, and sets out a proposed revised DMP intended to be quicker while remaining fair, plus an alternative version reflecting possible statutory changes to the civil financial penalties regime.

• Scope of proposals: Focuses on Board decisions that may result in a regulatory sanction in contested cases, not routine licensing (Executive) decisions.
• Current process issues identified: The present DMP is described as convoluted, overly long, and prone to causing Subjects to make unnecessary early representations to the Executive; the Review Committee stage and reliance on the full Board's monthly meeting cycle are flagged as slow.
• Proposed revised DMP: Set out in Appendix C, with an alternative version in Appendix D that would apply if the Government of Jersey's parallel consultation on extending civil financial penalties (to key persons, senior management function holders, and AML Order breaches) is approved.
• Statement of principles for financial penalties: Appendix D includes principles the JFSC would apply in deciding whether to impose a financial penalty and its amount, including seriousness, knowledge, self-reporting, remediation, and listed aggravating and mitigating factors.
• Legal basis: Issued under Article 8(3) of the Commission Law, fulfilling the JFSC's statutory obligation under Article 21B(6) to consult before revising its published DMP statement.

The consultation does not itself impose new binding requirements; it invites feedback that will inform a finalised revised DMP to be published after the consultation closes.

Key obligations

• Interested parties wishing to comment must submit written responses to the JFSC or to Jersey Finance Limited (JFL) by 1 September 2021
• Industry bodies or associations responding must also provide a summary of the type of individuals and/or institutions they represent

Applies to

any business or individual falling within the regulatory ambit of the JFSC, registered persons under the Commission Law, legal advisers to JFSC-regulated businesses or individuals

Deadlines

• 1 September 2021: Deadline for submitting comments on the consultation paper to the JFSC
• 1 September 2021: Deadline for submitting comments to Jersey Finance Limited (JFL) for inclusion in its coordinated industry response