Trust Company Business Cessation of Business Plan

Summary

This is a template form used by a trust company business (TCB) that wishes to voluntarily cease carrying on some or all of its trust company business in Jersey. It comprises a template cover letter to the JFSC requesting revocation of the TCB's registration or class(es), plus a template Cessation of Business Plan (COBP) that must be completed and submitted before the JFSC will revoke the registration.

• Who must use it: Trust company businesses registered under Article 2(3) of the Financial Services (Jersey) Law 1998 that resolve to voluntarily cease all or certain trust company business.
• Purpose: To request permanent revocation of the TCB's registration or specific class(es) under Article 9(4)(a) of the FS(J)L, as required by paragraph 6.4.1 of the Code of Practice for Trust Company Business.
• Content of the COBP: Must address, among other things: the effective date and reason for cessation; how shareholders and clients will be notified; confirmation of no breaches of registration conditions, the Code of Practice, or material contracts; resolution of complaints and outstanding issues; handling of contingent liabilities and run off PII cover; closure or transfer of client structures; termination of material contracts; compliance with record keeping and reporting duties under the Money Laundering (Jersey) Order 2008 and Proceeds of Crime (Jersey) Law 1999; submission of outstanding reports and accounts required under the 2007 Accounts, Audits and Reports Order; and, where applicable, details of any transfer of business to a new service provider.
• Post revocation steps: If the TCB will be dissolved, its directors must submit final audited financial statements to the JFSC showing no material assets or liabilities; if it will not be dissolved, it must change its company name to remove references to Trust.
• Signature requirement: The COBP must be signed by one or more directors of the TCB.

The document is a JFSC-prescribed template rather than a standalone rule, so it does not itself set generic deadlines beyond those the TCB must insert (such as the cessation date) when completing the form.

Key obligations

• A TCB voluntarily ceasing trust company business must complete a Cessation of Business Plan (COBP) before the JFSC will revoke its registration or class(es).
• The COBP must be signed by one or more directors of the TCB.
• The TCB must confirm in the COBP that it is not in breach of any registration condition, the Code of Practice for Trust Company Business, or any material contract.
• The TCB must confirm resolution of complaints and outstanding issues relating to its trust company business, or how outstanding complaints will be dealt with.
• The TCB must arrange appropriate run off professional indemnity insurance cover for contingent liabilities arising from past acts or omissions.
• The TCB must confirm compliance with record keeping requirements under the Money Laundering (Jersey) Order 2008 and the Proceeds of Crime (Jersey) Law 1999, including completed customer due diligence files.
• The TCB must confirm that any required notifications under the Proceeds of Crime (Jersey) Law 1999 have been made.
• The TCB must confirm that all reports and accounts required under the Financial Services (Trust Company and Investment Business (Accounts, Audits and Reports)) (Jersey) Order 2007 have been submitted to the JFSC.
• If the TCB will be dissolved following revocation, its board must submit final audited financial statements to the JFSC showing no material assets or liabilities.
• If the TCB will not be dissolved, it must change its company name to remove all reference to Trust.
• Where business is being transferred to a new service provider, the TCB must provide details of that provider, its connection to the TCB, the assets or structures being transferred, alternative options for clients, and the new home regulator if applicable.

Applies to

trust company businesses