Guidance Note: Natural Persons carrying on a single class of Trust Company Business

Summary

This JFSC guidance note explains how the trust company business regulatory framework applies to natural persons (sole traders) registered under Article 9 of the Financial Services (Jersey) Law 1998 to carry on a single class of trust company business, such as director, company secretary, trustee or nominee shareholder. It sets out what the JFSC expects at the application stage and on an ongoing basis, since many corporate-oriented requirements cannot be applied directly to an individual.

Application stage expectations

• Class G Director: Applicant normally restricted from acting as sole director or controlling customer assets alone without JFSC consent; must show personal unencumbered net liquid assets of at least £25,000; must address PII/D&O cover; must meet Category A TCBE qualification, experience and CPD standards; may request waiver of audit and audited accounts requirements under the TCB IB Accounts Order.
• Class I Company Secretary: Same financial resources, PII, competence and asset control requirements as Class G, plus a statement that the applicant will only act where an alternate secretary has been named.
• Class L Trustee: Applicant must declare they will not act as sole trustee without a co-trustee, and ideally that trust administration is carried out by a fully registered trust company business; same financial resources, PII, competence and control requirements apply.
• Class M Nominee Shareholder: Registration as a nominee shareholder is generally not granted except in exceptional circumstances; where granted, the same financial resources, PII, competence and control requirements apply.

Ongoing obligations of a registered sole trader

• Annual filing: Submit the Annual Registration Fee and Update Form for Sole Traders to the JFSC by 31 January each year, including a signed declaration on compliance with the FS(J)L, related Orders/Codes and AML/CFT legislation, listing any exceptions.
• Compliance officer role: Under the Money Laundering (Jersey) Order 2008, a sole trader is deemed to be their own compliance officer and must meet the corresponding TCB Code compliance officer requirements.
• CPD: Undertake a minimum of 25 hours of continuing professional development per year, as expected of a Category A trust company business employee.
• Risk assessment and CDD: Produce a bespoke business risk assessment (covering operational, economic, geographic and reliance risks) and maintain adequate customer due diligence policies, monitoring service providers' CDD where relied upon.
• Records and controls: Maintain orderly records (business acceptance, risk rating, periodic reviews, board minutes), operate effective complaints handling, and implement controls against data loss and financial crime.

The note maps specific sections of the TCB Codes and the AML Handbook to indicate which apply in full, in modified form, or not at all to sole traders, given that many provisions assume a corporate structure.

Key obligations

• Submit the Annual Registration Fee and Update Form for Sole Traders to the JFSC by 31 January each calendar year, including a signed declaration of compliance with the FS(J)L, relevant Orders, TCB Codes and AML/CFT legislation
• Maintain personal unencumbered net liquid assets of at least £25,000 as evidenced (e.g. by bank statement) at application and on an ongoing basis
• Obtain and maintain appropriate PII and/or D&O cover proportionate to the role, notifying the JFSC of any excess over £20,000 where relying on reduced PII cover
• Meet Category A Trust Company Business Employee qualification and experience standards and undertake a minimum of 25 hours CPD per year
• Act as one's own compliance officer under Article 7(2) of the Money Laundering (Jersey) Order 2008 and comply with TCB Code compliance officer requirements
• Not act as sole director or sole controller of customer assets without prior JFSC consent (Class G)
• Not act as company secretary unless an alternate secretary has been named (Class I)
• Not act as trustee unless provision is made for a co-trustee (Class L)
• Produce a bespoke business risk assessment covering operational, economic, geographic and reliance risks
• Apply customer due diligence policies and procedures, including assessing the adequacy of CDD performed by any regulated service provider relied upon
• Maintain orderly records including business acceptance, risk rating and periodic reviews, business risk assessment, and retention of board minutes
• Establish arrangements for handling complaints in a reasonable manner

Applies to

natural persons registered to carry on trust company business, sole traders, registered persons (Class G Director, Class I Company Secretary, Class L Trustee, Class M Nominee Shareholder), applicants for trust company business registration

Deadlines

• 31 January in each calendar year: Deadline for a registered sole trader to submit the Annual Registration Fee and Update Form, including the required compliance declaration, to the JFSC