Licensing Policy in respect of deposit-taking business that requires registration under the Banking Business (Jersey) Law 1991

Summary

This is a JFSC policy statement setting out the criteria the Commission uses to assess applications for registration to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. It applies both to new applicants seeking a banking registration and, on a continuing basis, to persons already registered to take deposits in Jersey, including managed banks. The policy explains the fit and proper assessment framework and the information required for an application, rather than creating new binding rules beyond the Banking Law itself.

• Fit and proper areas assessed: General conduct and integrity, stature, home jurisdiction and supervision, competence, organisation and systems, and ownership and control.
• Typical starting-point criteria: A minimum five-year relevant and satisfactory track record as a banking business under a relevant supervisory authority, a satisfactory audit history, a stable and capable management team, integrity, regard for customers' interests, and appropriate staff supervision and training.
• Revised 2014 approach: Removed the earlier expectation of parental capacity to bail out the bank and of overseas operating experience; softened the parent group capital ranking expectation from global Top 500 to Top 1000.
• Registration conditions: General conditions under the General Provisions Order cover appointment of a senior officer outside Jersey (for branches), commencement of new activities, Large Exposures (Jersey-incorporated companies), and establishing operations outside the Island; the JFSC may also impose special conditions.
• Application requirements: Applicants must submit a business plan with three-year forecasts, three years' financial statements of the applicant and parent companies, latest management accounts, organisation charts, the application fee, and personal questionnaires for proposed directors, controllers, managers and key persons.
• Annual renewal: Registered persons must apply annually for extension of registration under Article 9 of the Banking Law and the General Provisions Order, though information requirements are limited to changes since the last submission.

Failure to comply with a registration condition is an offence, potentially resulting in a fine for a registered person, or a fine or imprisonment of up to two years for individuals. Information and statements provided to the JFSC must not be false or misleading.

Key obligations

• Applicants and registered persons must satisfy the fit and proper criteria across integrity, competence, financial standing, structure and organisation on an ongoing basis, not just at initial application.
• Registered persons must apply annually for extension of their registration under Article 9 of the Banking Law and the General Provisions Order, providing updated information limited to changes since the previous submission.
• Applications must include a business plan with three-year forecasts, three years of financial statements (applicant and parent companies), latest management accounts, organisation charts, and the application fee.
• All individuals proposed as director, controller, manager or key person of an applicant must complete and submit a personal questionnaire to the JFSC.
• Information and statements supplied to the JFSC must not be false or misleading, per Article 22 of the Banking Law.
• Registered persons must comply with any general or special conditions attached to their registration, including conditions on senior officer appointment (branches), commencement of new activities, Large Exposures, and establishing operations outside Jersey.

Applies to

banks, deposit-taking businesses, managed banks, applicants for registration under the Banking Business (Jersey) Law 1991, registered persons

Deadlines

• annually: Registered persons must apply annually for extension of their registration in accordance with Article 9 of the Banking Law and Article 9 of the General Provisions Order.