Licensing policy in respect of those activities that require registration under the Financial Services (Jersey) Law 1998

Summary

This is a JFSC policy statement explaining how the Commission assesses whether an applicant is a fit and proper person for registration under the Financial Services (Jersey) Law 1998 (FS(J)L). It applies to persons seeking registration to conduct investment business, trust company business, general insurance mediation business, money service business or fund services business, and the same criteria continue to apply to registered persons on an ongoing basis, including when there is a material change in circumstances such as a change of ownership.

• Integrity: Applicant must show it will conduct business with integrity, have due regard for customers' interests, and provide adequate supervision and training; incomplete or dishonest information in an application will count against it.
• Competence: Applicant and those employed by or associated with it must be competent, appropriately qualified or experienced, and able to comply with the relevant regulatory framework; the board must have a wide range of relevant skills.
• Financial standing: Applicant must maintain adequate capital, solvency and professional indemnity insurance, remain a going concern, and be able to survive periods of business slowdown; specific financial resource requirements are set out in the relevant Codes of Practice.
• Structure and organisation: Covers restriction of activities to regulated activities, access to resources, systems and controls, and transparency of ownership, including submission of personal questionnaires by controllers who are not on the board.
• Track record: Applicants are generally expected to show at least three years' relevant, satisfactory supervised track record, a satisfactory audit history, and a stable, capable management team, though alternative evidence may be accepted for newly formed or managed entities.

The policy also confirms that registered persons must comply with the applicable Code of Practice and the relevant Accounts, Audits and Reports Order for their activity, which requires submission of audited annual financial statements to the JFSC. The document does not cover assessment of individual principal or key persons, which is addressed separately.

Key obligations

• Applicants must demonstrate integrity, competence, financial standing and adequate structure/organisation to be registered under the FS(J)L, and registered persons must continue to meet these criteria on an ongoing basis.
• Registered persons must notify and satisfy the JFSC's fit and proper criteria in the event of a material change in circumstances, such as an anticipated change of ownership.
• Applicants must provide complete and accurate information in their application; failure to do so, or intentional omission of material information, will be taken into account by the JFSC.
• Registered persons must maintain adequate financial resources (capital adequacy, solvency and professional indemnity insurance) and remain a going concern.
• Registered persons must organise and control their affairs effectively, with adequate risk management systems, per the relevant Code of Practice.
• Controllers falling within the definition of principal person who are not board members must submit a personal questionnaire to the JFSC.
• Registered persons must submit audited annual financial statements to the JFSC in accordance with the relevant Accounts, Audits and Reports Order.

Applies to

applicants for registration under the Financial Services (Jersey) Law 1998, investment business, trust company business, general insurance mediation business (GIMB), money service business, fund services business, registered persons