Financial Services (Financial Service Business) (Jersey) Order 2009

Summary

This Order, made under the Financial Services (Jersey) Law 1998, sets out the classes of financial service business that require registration with the Jersey Financial Services Commission. The Schedule lists specific business activities and groups them into classes (labelled with letters) across investment business, trust company business, general insurance mediation, money service business, fund services business, and AIF services business.

• Investment business: Classes A to E cover dealing in investments, managing investments, giving investment advice (with or without holding client assets), and business relating to certain non-public collective investment funds.
• Trust company business: Classes F to OB cover formation agents, acting as director, partner, secretary, providing registered office or correspondence addresses, acting as trustee of an express trust, nominee shareholding, managing a managed trust company, and a limited class O carrying transitional relief provisions, plus foundation council members and LLC members/managers.
• General insurance mediation business: Classes P, Q, R and S distinguish standalone general insurance mediation business, mediation carried on alongside other authorised business, and incidental mediation business with or without advice on policy terms.
• Money service business: Class T covers carrying on money service business.
• Fund services business: Classes U to ZK cover roles such as manager, administrator, registrar, investment manager, investment adviser, distributor, subscription/redemption/purchase/repurchase agents, trustee, custodian, depositary, and partnership members.
• AIF services business: Class ZL covers acting as manager of an Alternative Investment Fund (AIF).

The Order itself is largely classificatory, defining which activities fall into which registrable class rather than imposing new day-to-day duties. It does, however, include transitional relief for providers of certain trust company services (Class O) whose services do not, or cease to, meet the class O criteria when the relevant provisions commence or change.

• Class O pre-commencement gap: A provider already registered in class O whose service does not meet the class O requirements when paragraph (1) commences is treated as still meeting them for 6 months from commencement, or longer if a registration application in another relevant class is still pending at the end of that period.
• Class O post-commencement gap: A provider whose class O service later ceases to meet the requirements is treated as still meeting them for 3 months after the point they could, with reasonable diligence, have discovered the shortfall, or longer if a pending registration application in another relevant class has not been finally determined.

Key obligations

• Persons carrying on any activity listed in the Schedule must register with the JFSC in the corresponding class of financial service business under the Financial Services (Jersey) Law 1998.
• A class O trust company service provider whose service fails to meet class O requirements at commencement of paragraph (1) must, within 6 months of commencement (or until a pending registration application in another relevant class is finally determined, if later), obtain registration in another applicable class or cease the non-conforming activity.
• A class O trust company service provider whose service later ceases to meet class O requirements must, within 3 months of when it could reasonably have discovered this (or until a pending registration application in another relevant class is finally determined, if later), obtain registration in another applicable class or cease the non-conforming activity.

Applies to

investment business providers, trust company service providers, general insurance mediation businesses, money service businesses, fund services business providers (managers, administrators, registrars, investment managers, investment advisers, distributors, agents, trustees, custodians, depositaries), AIF managers

Deadlines

• 6 months from commencement of paragraph (1): Transitional period during which a class O trust company service provider not meeting the class O requirements at commencement is treated as still meeting them.
• 3 months after the provider could, with reasonable diligence, have discovered non-compliance: Transitional period during which a class O trust company service provider that later ceases to meet the class O requirements is treated as still meeting them.

Related documents

• This document amends Financial Services (Jersey) Law 1998
• This document is made under Financial Services (Jersey) Law 1998
• Consultation Paper No. 7 2016 - Class O Financial Service Business amends this document
• Limited Liability Partnerships (Jersey) Law 2017 amends this document