Decision-Making Process (JFSC Policy)

Summary

This JFSC policy statement sets out the internal process the Commission follows when it takes administrative action that could result in a regulatory sanction, such as a financial penalty, licence revocation, or public censure. It does not create direct compliance obligations for firms in the ordinary course, but it explains the procedural rights and stages that apply to any person or firm (a 'Subject') under investigation, and incorporates the JFSC's Statement of Principles for financial penalties as required by the Commission Law.

• Decisions covered: Revoking a licence, auditor registration or audit permission; objecting to a principal person, key person or actuary; issuing a public censure or statement; directing cessation of operations or wind up; restricting employment of an individual; refusing to withdraw or vary a direction; withdrawing approval of a recognized professional body's audit rules; imposing a financial penalty.
• Process stages: Investigation by the Executive, review of the case by the Executive, referral to and consideration by the Board DMP Committee (issuing a Notice of Intent), and determination by the Committee after written and oral representations from the Subject.
• When it does not apply: Urgent action cases, decisions taken with the Subject's agreement, decisions with immediate statutory effect, reduced notice period decisions (e.g. scam website warnings), Executive decisions under normal or heightened supervision, and applications to the Royal Court.
• Financial penalty principles: Sets out aggravating and mitigating factors the JFSC will apply in deciding whether to impose a financial penalty and its amount, including seriousness, knowledge, self reporting, compliance history, cooperation, and remediation.

The May 2022 update made consequential amendments following the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022, which widened the scope of the civil financial penalties regime; it did not change the underlying decision-making stages.

Key obligations

• A Subject who receives a Notice of Intent has one month from receipt to make written representations to the Board DMP Committee before it determines the case.
• When an investigation is opened, the Executive must provide the Subject with a written note of the scope of the investigation (and any revised scope if it changes).
• The Subject must be given an opportunity to comment on the draft investigation report before it is finalised.
• The Board DMP Committee must issue a Notice of Intent stating the proposed regulatory sanction and reasons before determining a case, including the proposed financial penalty amount or a draft direction/public statement where applicable.
• Following a decision to impose a regulatory sanction, the JFSC must serve the relevant statutory notice on the Subject, including reasons and particulars of the right of appeal to the Royal Court.

Applies to

licence holders, applicants for a licence, former licence holders, registered persons, principal persons, key persons, persons performing senior management functions, authorized auditors, recognized auditors, recognized professional bodies

Deadlines

• one month: Period given to the Subject to make written representations on a Notice of Intent before the Board DMP Committee determines the case.