New World Trustees (Jersey) Limited (2015-03-13)

Summary

This is a public statement issued by the Jersey Financial Services Commission under Article 25 of the Financial Services (Jersey) Law 1998, setting out findings from its investigation into New World Trustees (Jersey) Limited (New World Jersey), a Jersey trust company business. It documents historical regulatory breaches identified during an investigation into New World Jersey's administration of a customer group of connected investment structures between 2004 and 2010, and does not itself impose new ongoing requirements.

• Codes of Practice breaches: Multiple and repeated failures to comply with the Codes of Practice for Trust Company Business, including due skill/care/diligence, proper exercise of discretion, conflicts of interest management, robust compliance arrangements, director knowledge obligations under Class G trust company business, adequate compliance resourcing, and record keeping.
• Unauthorised business and COBO breaches: The Investment Vehicle under New World Jersey's administration breached Article 7 of the Financial Services Law by conducting unauthorised investment business, and breached Articles 1 and 3 of the Control of Borrowing (Jersey) Order 1958 by failing to obtain required consents.
• AML/CFT failures: Failures to complete customer take on forms, document source of wealth and source of funds, and conduct ongoing customer due diligence re-assessment.
• Governance and documentation deficiencies: Deficient contractual documentation, missing or inadequate board minutes, poorly documented and sometimes retrospectively re-classified transactions, and inadequate information provided to investors.
• Remedial and outcome context: New World Jersey cooperated with the Commission, strengthened its compliance and management team, undertook remediation, and was sold in April 2013 to become part of another regulated trust company business.

Applies to

trust company business, registered persons under the Codes of Practice for Trust Company Business