Feedback on Consultation No. 6 2022 and Follow-on Consultation on Revised Outsourcing Policy (OSP)

Summary

This is a JFSC feedback paper on its original Consultation No. 6 2022 on a Revised Outsourcing Policy (OSP), combined with a follow-on consultation on a further-revised draft OSP. It summarises industry comments received (from banks, trust company businesses, investment businesses, fund services businesses, family offices and a law firm), the JFSC's responses, and invites further comments on newly proposed changes before a final Revised OSP is issued.

• Scope changes: NDFs and Unregulated Funds are proposed to be brought within the meaning of 'Fund' for purposes of the Revised OSP.
• Data Centre/Cyber Security Services: The blanket exemption for Data Centre Services and/or Cyber Security Services from the Revised OSP is proposed to be removed.
• AMLSP Direct Customer exemption: A new exemption is proposed where an AMLSP performs AMLSP services for a registered AMLSP Direct Customer consistent with AML/CFT/CPF Handbook standards.
• Automated screening services exemption: A new exemption is proposed for Service Providers supplying automated third-party AML/CFT/CPF screening services to a Business.
• Transition Period: The latest draft Revised OSP would take effect three months after the final Revised OSP is issued, with issuance anticipated around July 2023 to align with the end of the transition period for the amended AML/CFT/CPF regime.
• Retained exemptions/positions: Telecommunication Services remain exempt from the Revised OSP; Managed Trust Company Business (MTCB) remains exempt; guidance on Cloud Services and the 'materially prevent, disrupt or impact upon' test is clarified but not fundamentally changed.

This document does not itself impose new binding obligations; it is a consultation stage. Businesses and industry bodies are invited to submit feedback on the five follow-on consultation questions before the JFSC finalises and issues the Revised OSP, after which the transition period will begin.

Key obligations

• Interested parties wishing to comment must submit feedback on the follow-on consultation questions to the JFSC or via Jersey Finance Limited by 28 February 2023
• Once the final Revised OSP is issued, affected Businesses will need to comply with it by the end of the three-month transition period following issuance

Applies to

Supervised Persons, banks, trust company businesses, investment businesses, fund services businesses, insurance businesses, Anti-Money Laundering Services Providers (AMLSPs), family offices, Managed Trust Company Business (MTCB) (currently exempt)

Deadlines

• 28 February 2023: Deadline for submitting comments on the follow-on consultation on the Revised OSP, either directly to the JFSC or via Jersey Finance Limited
• April 2023 (anticipated): Anticipated publication date of the final Revised OSP after considering further feedback
• three months from the date the final Revised OSP is issued: Transition Period before the Revised OSP takes effect, anticipated to conclude around July 2023 in line with the AML/CFT/CPF regime transition