Application letter enc. FSB cessation of business plan

Summary

This is a template application letter, with an attached Cessation of Business Plan (COBP) template, for use by a Jersey fund services business (FSB) that wants to voluntarily stop carrying on fund services business and have the JFSC revoke its FSB Registration under the Financial Services (Jersey) Law 1998. It sets out the standard wording an FSB should use to notify the JFSC and lists the information and confirmations the COBP must address.

• Letter: Confirms the FSB has resolved to voluntarily cease its registered fund services business and formally requests permanent revocation of its FSB Registration under Article 9(4)(a) of the FS(J)L.
• COBP requirement: Notes that under Paragraph 6.5.1 of the Code of Practice for Fund Services Business, revocation is conditional on the JFSC first receiving a completed Cessation of Business Plan.
• COBP content: The COBP must be signed by one or more directors and cover matters such as: the cessation date and reasons; notification of shareholders and fund clients/structures; confirmation of no breaches of the FSB Registration, Codes of Practice or material contracts; resolution of complaints and outstanding issues; run off PII cover for contingent liabilities; closure or transfer of fund clients/structures and termination of material contracts; AML/CFT record keeping and Proceeds of Crime Law compliance, including CDD files and any required notifications; and submission of all outstanding reports and accounts.
• Post revocation steps: Depending on outcome, either the board will submit final audited financial statements showing no material assets or liabilities (if dissolving), or will change the company name to remove reference to "Fund" (if continuing as another type of financial service business); if the business is being transferred, details of the new service provider, transferred structures/assets, client options and any new home regulator must be provided.

The document is an administrative template rather than a standalone rule; it operationalises existing obligations under the FS(J)L, the Code of Practice for Fund Services Business, and Jersey's anti money laundering and proceeds of crime legislation for FSBs seeking to exit fund services business.

Key obligations

• An FSB seeking to cease fund services business must notify the JFSC and request revocation of its FSB Registration under Article 9(4)(a) of the FS(J)L
• The FSB must complete and submit a Cessation of Business Plan (COBP), signed by one or more directors, before the JFSC will consider revoking the FSB Registration
• The COBP must confirm the cessation date, reasons for cessation, and the framework for notifying shareholders and fund clients/structures
• The FSB must confirm it is not in breach of its FSB Registration conditions, the Code of Practice for Fund Services Business, and (if applicable) the Code of Practice for Alternative Investment Funds and AIF Services Business
• The FSB must confirm resolution of complaints and outstanding issues, and describe run off PII arrangements for contingent liabilities
• The FSB must detail how existing fund clients/structures will be closed or transferred and how material contracts will be terminated
• The FSB must confirm compliance with record keeping requirements under the Money Laundering (Jersey) Order 2008 and the Proceeds of Crime (Jersey) Law 1999, including completion of customer due diligence files and any required notifications
• The FSB must confirm that all reports and accounts required under the Financial Services (Fund Services Business (Accounts, Audits and Reports)) (Jersey) Order 2007 have been submitted to the JFSC
• If dissolving, the board must submit final audited financial statements showing no material assets or liabilities; if continuing as another financial service business, it must change its company name to remove reference to "Fund"
• If transferring business to a new service provider, the FSB must provide details of that provider, the assets/structures being transferred, timing, client alternatives, and the new provider's home regulator if not a Jersey entity

Applies to

Fund services businesses (FSBs) registered under Article 2(10) of the Financial Services (Jersey) Law 1998, including fund administrators (e.g. Class V administrators)