Subordinated loan consent request checklist

Summary

This is a checklist form used by the Jersey Financial Services Commission to accompany a request for consent to a subordinated loan or facility. It is completed by a registered person seeking Commission approval of the loan terms and confirms that the loan agreement meets regulatory requirements.

• Loan details: Discloses the amount of the subordinated loan/facility, the amount to be drawn down, and whether it exceeds four times the net asset figure in the latest audited financial statements.
• Rationale: Requires an explanation of the rationale for the subordinated loan.
• Financial impact: For Investment, Fund Services or Trust Company Business, states ANLA before and after consent; for Insurance or General Insurance Mediation Business, states the Margin of Solvency before and after consent.
• Agreement details: Confirms whether the Commission's proforma Subordinated Loan Agreement was used, states the loan term, and identifies who signed the agreement and when.
• Compliance confirmation: The registered person confirms the agreement was drawn up in accordance with the relevant Codes of Practice and commits to notifying the Commission immediately of any breach or of any lender notice/consent request under the agreement, and to taking action as the Commission directs.

The form must be signed by two authorised signatories on behalf of the registered person.

Key obligations

• The registered person must immediately notify the Commission in writing of any breach of the Subordinated Loan Agreement by itself or the lender.
• Where the breach is by the lender, the registered person must, at the Commission's request, take all steps necessary to enforce the lender's obligations under the Agreement.
• If the registered person receives notice from the lender under Clause 4 or is asked for consent under Clause 7 of the Agreement, it must immediately notify the Commission in writing and take such action as the Commission directs.
• The subordinated loan agreement must be drawn up in accordance with the relevant Codes of Practice issued by the Jersey Financial Services Commission.
• The form must be signed by two authorised signatories on behalf of the registered person.

Applies to

Investment Business, Fund Services Business, Trust Company Business, Insurance Business, General Insurance Mediation Business