Banking Business (Appointment of Manager) (Jersey) Order 2008

Summary

This Jersey Order, made under the Banking Business (Jersey) Law 1991, sets out the specific circumstances in which the Jersey Financial Services Commission may appoint a manager to take over the affairs of a person carrying on deposit-taking business. It does not itself impose ongoing compliance duties on banks, but defines the trigger conditions for this regulatory intervention power.

• Inadequate management: evidenced by controller dishonesty, insufficient resources, poor record keeping, conflicts of interest, serious AML or terrorist financing breaches, or death, incapacity or prolonged absence of a controller.
• Failure to wind up properly: the business appears to have ceased but has not been wound up, liquidated, closed or transferred in an orderly manner.
• Persistent failure on complaints: repeated failure to examine customer claims or complaints.
• Unregistered business: the person is carrying on deposit-taking business without being registered under the Law.
• Need to protect assets or records: a manager is needed to collect, protect or preserve assets, records or customer property.
• Avoiding forced closure: a manager is needed to prevent circumstances that could lead to a forced closure of the business.
• Compensation scheme implementation: a manager is needed to promote or implement a customer compensation scheme.
• Non compliance with conditions, notices or directions: failure to comply with a condition under Article 11, a notice of objection under Articles 14, 15 or 24, or a direction under Article 21 of the Law.

In practical terms, this Order empowers the Commission to intervene in a bank's management once it has sufficient evidence of any of these cases; it does not create new filing, reporting or notification duties for banking business licensees themselves.

Applies to

persons carrying on deposit-taking business (banks)

Related documents

• This document amends Banking Business (Jersey) Law 1991
• This document is made under Banking Business (Jersey) Law 1991