Financial Services (Investment Business (Overseas Persons – Exemption)) (Jersey) Order 2001

Summary

This Order, made under the Financial Services (Jersey) Law 1998, exempts certain overseas persons from the Law's investment business licensing requirements when they carry out specified transactions with persons in Jersey. It defines what counts as an 'overseas person' and a 'specified transaction' and sets conditions under which cross-border dealings, agency, discretionary management, advice, and investment advertisements fall outside Jersey's licensing regime.

• Who qualifies as an overseas person: A person with no place of business in Jersey from which investment business is carried on, and who is not a company incorporated in Jersey.
• Exempted activities: An overseas person carrying out a specified transaction, a specified transaction carried out with an overseas person, and the publication in Jersey of a compliant investment advertisement soliciting a specified transaction.
• Specified transaction: A transaction amounting to investment business where the overseas person deals with, acts as agent for, provides discretionary management to, or advises a person in Jersey.
• Unsolicited approach condition: The transaction only qualifies for exemption if it arose from an unsolicited approach by the Jersey person, or from an approach via an investment advertisement compliant with an Order under Article 31 of the Law.
• Retail (natural person) protection: If the Jersey person is a natural person dealing as a member of the public, the exemption only applies if the overseas person is supervised for investment business by a relevant authority in its home jurisdiction and deals in accordance with standards in any Commission Code of Practice.
• Agency transactions with a Jersey counterparty: Where the overseas person acts as agent for a Jersey person in dealing with another person also in Jersey, the exemption applies only if that agreement itself meets the unsolicited-approach or compliant-advertisement conditions.

The Order does not create ongoing filing or reporting duties; it operates as a standing exemption defining the boundary of licensable investment business under Jersey law. It has been in force since 2 February 2001 and remains current in its consolidated form.

Key obligations

• Overseas persons and Jersey counterparties relying on this exemption must ensure the transaction arose from an unsolicited approach by the Jersey person or via an investment advertisement compliant with any Order under Article 31 of the Financial Services (Jersey) Law 1998, or the exemption does not apply.
• Where the Jersey counterparty is a natural person acting as a member of the public, the overseas person must be supervised for investment business by a relevant authority in its home country and must deal with the Jersey person in accordance with standards specified in any Commission Code of Practice for the exemption to apply.
• Where an overseas person acts as agent for a Jersey person in an agreement with another Jersey-based person, that agreement must independently satisfy the unsolicited-approach or compliant-advertisement conditions for the exemption to extend to it.

Applies to

overseas persons carrying on investment business with persons in Jersey, investment business licensees under the Financial Services (Jersey) Law 1998, persons in Jersey dealing with overseas investment business providers

Related documents

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