Financial Services (Appointment of Manager) (Jersey) Order 2008

Summary

This Order, made under the Financial Services (Jersey) Law 1998, sets out the specific circumstances in which the Jersey Financial Services Commission may apply to the Royal Court for the appointment of a manager to take over the affairs of a person carrying on financial service business (including trust company business, fund services business, insurance business and investment business). It does not itself impose ongoing filing or reporting duties on firms, but defines the regulatory intervention powers available to the Commission.

Prescribed circumstances (Schedule)

• Case 1: Inadequate management of the financial service business, evidenced by matters such as dishonesty, breach of fiduciary duty, insufficient resources, poor record keeping, conflicts of interest, serious AML/CFT or Law breaches, or the death/incapacity of a principal person.
• Case 2: The business appears to have ceased but has not been wound up, liquidated, closed or transferred in an orderly manner.
• Case 3: Persistent failure to examine customer claims or complaints.
• Case 4: The person is carrying on financial service business without being registered under the Law for that type of business.
• Case 5: Need to appoint a manager to collect, protect or preserve business assets, records, or customer property.
• Case 6: Need to appoint a manager to avoid circumstances that could lead to forced closure of the business.
• Case 7: Need to appoint a manager to promote or implement a customer compensation scheme.
• Case 8: Failure to comply with a condition under Article 10, a notice of objection under Article 13, or a direction under Article 23 of the Law, creating a need for independent management.

In practice, the Order operationalises the Commission's Article 12 power: if the Commission has sufficient evidence that any of these Schedule cases exists in relation to a registered person, it may seek a court-appointed manager over that person's financial service business affairs.

Applies to

persons carrying on financial service business under the Financial Services (Jersey) Law 1998, trust company business providers, fund services businesses, investment (securities investment) business providers, insurance business providers

Related documents

• This document is made under Financial Services (Jersey) Law 1998