Guidance Note: Prudential Reporting of Other Prudential Data (March 2019)

Summary

This guidance note explains how Jersey International Banks (JIBs) should complete the 'Other Prudential Data' section (module 9) of their quarterly prudential return submitted to the JFSC. It sets out line-by-line completion instructions for ten sub-sheets covering fiduciary activity, parent group accounts, additional detail fields, commentary on material movements, depositor compensation scheme (DCS) data, internal ratings-based credit risk detail, local interbank balances, non-financial information, and director disclosures.

• Fiduciary activity: JIBs must report off-balance-sheet assets held in a fiduciary capacity (deposits/cash, securities, other assets such as property or precious metals) rather than including them on the balance sheet.
• Parent accounts: JIBs must report key figures from the most recent published consolidated accounts of the ultimate parent banking group, including capital resources, loans and advances, retail deposits, total footings and pre-tax profit.
• Additional detail and material movements: Where fields are marked 'Detail', components exceeding 5% of the total item must be identified; commentary must be submitted explaining material balance sheet or capital movements exceeding 10% change and 5% of the relevant total.
• DCS data: Banks must supply data on eligible depositors (number of depositors, total eligible deposits, and amounts within the £50,000 and £5,000 compensation thresholds) annually in the December return, or quarterly if an automated collection process is in place.
• FIRB/AIRB detail: JIBs using internal ratings-based models for credit risk must report portfolio-level exposure amounts and risk-weighted assets under both the internal model and the JFSC's Standard Approach, using consistent portfolio mappings unless a change is agreed with the JFSC.
• Local interbank market: JIBs must report gross amounts placed with and received from Jersey-registered deposit takers by currency, with an option to omit currencies where the gross balance is below £1 million.
• Other information: JIBs must report the number of internal money laundering reports, the number of SARs filed with the JFCU or other FIUs, full-time equivalent staff numbers, and unfilled vacancies.
• Directors' names and interests: JIBs must maintain a schedule of directors' positions, names, residence, shareholdings in the parent and the bank, contractual interests, and loans exceeding specified thresholds, with all fields completed (using '0' where not applicable) rather than left blank.

The guidance is procedural in nature and applies to the completion of an existing regulatory return rather than introducing new licensing or capital requirements; it clarifies reporting expectations for each data field within module 9 of the prudential return.

Key obligations

• JIBs must report fiduciary assets (deposits/cash, securities, other assets) held on behalf of clients in the '9.1 Fiduciary Activity' sheet rather than on the balance sheet.
• JIBs must report key consolidated parent group financial figures (capital resources, loans, deposits, footings, pre-tax profit) in the '9.2 Parent Accounts' sheet.
• JIBs must identify, in 'Detail' fields, any component exceeding 5% of the relevant total and report current and preceding quarter figures.
• JIBs must submit commentary explaining material movements in balance sheet items, regulatory capital, or other reported items where the movement exceeds 10% of the prior balance and constitutes over 5% of the relevant total.
• JIBs must provide DCS eligible depositor data (number of depositors, total eligible deposits, amounts within £50,000 and £5,000 thresholds) annually in the December return, or quarterly if an automated process exists.
• JIBs using FIRB or AIRB models must report portfolio name, exposure amount, model RWA and Standard Approach RWA for each portfolio, using consistent model-to-portfolio mappings unless changes are agreed with the JFSC.
• JIBs must report gross local interbank balances placed with and received from Jersey banks by currency, aggregated as specified, unless the gross balance for a currency is below £1 million.
• JIBs must report the number of internal money laundering reports, SARs filed with the JFCU or other FIUs, full-time equivalent staff, and unfilled vacancies across the JIB and its subsidiaries/branches.
• JIBs must maintain and submit a complete schedule of directors' names, positions, residence, shareholdings, contractual interests, and loans exceeding £100,000 (or £250,000 for house purchase loans), with all required fields completed even if nil.

Applies to

Jersey International Banks (JIBs)

Deadlines

• annually, in the December return: DCS eligible depositor data must be provided annually unless the bank has an automated process, in which case it should be reported quarterly.