Financial Services (Trust Company and Investment Business (Accounts, Audits and Reports)) (Jersey) Order 2007

Summary

This Jersey Order sets out detailed accounting, audit and reporting requirements for persons registered under the Financial Services (Jersey) Law 1998 to carry on trust company business, investment business, or both. It governs how these registered persons must set their accounting periods, appoint auditors, keep records, and prepare and file financial statements, declarations and directors' reports with the Jersey Financial Services Commission.

• Accounting period: Registered persons must apply to the Commission for approval of a first accounting period (up to 18 months) and subsequent periods (normally 12 months), and cannot change an approved period without Commission approval.
• Auditor appointment: Only an auditor approved by the Commission as independent and suitable may be engaged; if an auditor's appointment is terminated, the auditor must notify the Commission within 7 days of any relevant circumstances.
• Accounting records: Registered persons must keep accounting records showing all transactions and financial position, store them securely and with backups, and retain them for at least 10 years.
• Declaration and directors' report: After each accounting period, registered persons (or their directors/partners) must sign a declaration confirming compliance with the Law, applicable Orders and Codes of Practice, and AML/CFT requirements, detailing any material failures; companies and partnerships must also prepare a directors' report with specified content.
• Provision to auditor and Commission: Financial statements, the directors' report and the declaration must be given to the auditor as soon as practicable after the period end, and financial statements (with declarations, directors' reports and auditor's reports) must be provided to the Commission within 4 months of the period end, extendable to up to 8 months in special circumstances with Commission permission.
• Financial statement standards: Financial statements must be prepared in accordance with UK Accounting Standards or International Accounting Standards, give a true and fair view, and be signed by the registered person or required number of directors/partners.
• Consolidated statements: Registered persons that are part of a group may apply for Commission approval to provide consolidated financial statements and declarations instead of individual ones.
• Reporting of losses: Auditors, accountants and other approved reporting persons must communicate to the Commission if they become aware that a registered person or its customer/client has incurred, or is at significant risk of incurring, a material loss.

Transitional provisions preserve accounting periods, auditor approvals, exemptions and consolidated statement permissions that existed under the predecessor 2000 and 2001 Orders as at the commencement day of 31 December 2007.

Key obligations

• Apply to the Commission for approval of a first accounting period (not more than 18 months) at the time of registration, and for subsequent accounting periods (normally 12 months unless the Commission approves otherwise).
• Do not change an approved accounting period without the Commission's approval.
• Do not engage a person as auditor unless that person is approved by the Commission as independent and suitable.
• An auditor whose appointment is terminated must, within 7 days of termination, provide the Commission with a statement on any circumstances relating to the termination that should be brought to its attention.
• Keep accounting records that show and explain transactions, enable preparation of financial statements, and disclose financial position and compliance with financial resources requirements at any time.
• Store accounting records securely, protect them from unauthorised access, back them up, and retain records and backups for at least 10 years.
• Prepare and sign, after each accounting period, a declaration stating compliance with the Law, applicable Orders/Codes of Practice, and AML/CFT requirements, including details of any material failures and remedial measures.
• Companies and partnerships must prepare a directors' report after each accounting period containing specified details of directors/partners and business activities.
• Provide the auditor with financial statements, directors' report (if applicable) and declaration as soon as practicable after the end of each accounting period, and give the auditor access to records and requested information.
• Provide financial statements to the Commission within 4 months of the end of the accounting period, or within up to 8 months if the Commission permits in special circumstances due to special circumstances.
• Ensure financial statements are prepared in accordance with UK Accounting Standards or International Accounting Standards and give a true and fair view of the registered person's state of affairs and profit or loss.
• Auditors, accountants or other approved reporting persons must report to the Commission if they become aware that a registered person or its customer or client has incurred, or is at significant risk of incurring, a material loss.

Applies to

registered persons carrying on trust company business, registered persons carrying on investment business, auditors of registered persons, accountants and other approved reporting persons

Deadlines

• within 4 months of the end of the relevant accounting period: Financial statements (with declaration, directors' report and auditor's reports) must be provided to the Commission.
• within a period not more than 8 months after the end of the relevant accounting period, if permitted by the Commission in special circumstances: Extended deadline for providing financial statements to the Commission.
• within 7 days of termination: Auditor must provide the Commission with a statement on circumstances relating to termination of the auditor's appointment.
• at least 10 years from the date the records were made: Minimum retention period for accounting records and backup copies.
• 31 December 2007: Commencement day of the Order, from which transitional provisions carry over accounting periods, auditor approvals, exemptions and consolidated statement permissions from the predecessor 2000 and 2001 Orders.

Related documents

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