Financial Services (Trust Company Business (Assets – Customer Money)) (Jersey) Order 2000

Summary

This Order sets out detailed rules for how Jersey registered trust company businesses must handle customer money (cash and funds they control or are responsible for safeguarding on behalf of customers). It covers record keeping, reconciliation, interest, segregation, permitted uses, and pooled bank account requirements, and allows the JFSC to grant exemptions in limited circumstances.

• Records: Registered persons must keep adequate records of customer money that identify and trace each transaction and each customer's balance, and allow timely reconciliation.
• Reconciliation: Registered persons must promptly reconcile their customer money records against bank statements.
• Interest: Where reasonable and practicable, interest received on customer money must be credited to the relevant customer, unless the customer agrees otherwise.
• Segregation: Customer money must not be mixed with other money so far as possible and practicable; mixed funds must be separated within 2 days of it becoming possible to do so, otherwise an offence may arise.
• Use of funds: A customer's money cannot be used for another customer without proper authority, and disbursements must be properly payable or transferred.
• Pooled accounts: Customer pooled bank accounts must be held with an approved bank, clearly titled to indicate they hold customer money, backed by a bank undertaking not to combine or set off against the account, and must not be knowingly overdrawn.
• Exemptions: The JFSC may exempt a registered person from any requirement of the Order on application, provided customers are not likely to be prejudiced, and may impose conditions on any exemption granted.

The Order has been in force since 11 December 2000, with a minor definitional amendment made in 2019 taking effect from 11pm on 31 January 2020 as part of Brexit related financial services changes.

Key obligations

• Registered persons must keep adequate records of customer money showing each transaction and each customer's balance in a manner allowing tracing and timely reconciliation.
• Registered persons must promptly reconcile customer money records against bank statements received.
• Registered persons must ensure, so far as reasonable and practicable, that interest is received on customer money and credited to the customer, unless the customer agrees otherwise.
• Registered persons must ensure customer money is not mixed with other money so far as possible and practicable, and must separate mixed money within 2 days of becoming aware it is possible to do so.
• Registered persons must ensure a customer's money is not used for another customer without proper authority and is disbursed only when properly payable or transferred.
• Registered persons must ensure any customer pooled bank account is held with an approved bank, is clearly titled as a customer money account, is backed by a bank undertaking not to combine or exercise set off rights against it, and is not knowingly overdrawn.
• A registered person seeking exemption from any requirement must apply to the Commission, which may impose conditions on any exemption granted.

Applies to

registered persons carrying on trust company business (trust company business registrants)

Deadlines

• within 2 days of it being possible and practicable to do so: Deadline for separating customer money that has become mixed with other money, as a defence to an offence under Article 5(1).

Related documents

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