Unless otherwise defined, the following terms when used in the Code shall have the meanings set out below. If not defined below or elsewhere in the Code, terms, where relevant, have the same meanings as are ascribed to them in the FS(J)L.
All terms which appear in this Glossary are reflected in the Code utilising italic text. Guidance to the Code in the form of “Notes” has been placed in a box to highlight its status.
Means financial service advertisement (which is defined in Article 1 of the FS(J)L).
Means Adjusted Net Liquid Assets.
Anti-money laundering legislation
Includes the Proceeds of Crime (Jersey) Law 1999, the Money Laundering (Jersey) Order 2008 (the 火焰喷射器Money Laundering Order火焰喷射器), and the Terrorism (Jersey) Law 2002, as well as any other applicable Laws and United Nations or European Union Sanctions Orders applied within Jersey, all as amended from time to time.
Has the same meaning as provided by Article 1 of the Financial Services (Investment Business (Client Assets)) (Jersey) Order 2001, as amended.
Means the Code of Practice for Investment Business.
Means any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a service that relates to investment business carried on by the registered person, which alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience.
Means Continuing Professional Development.
Means the Rehabilitation of Offenders (Exceptions) (Jersey) Regulations 2002, as amended.
Means the Financial Services (Jersey) Law 1998, as amended.
Has the same meaning as provided in the investment business fees notice.
Means Jersey Financial Services Commission.
Has the same meaning as provided by Article 1 of the FS(J)L.
Money Laundering Order
Means the Money Laundering (Jersey) Order 2008, as amended.
Means total assets less total liabilities.
Means Professional Indemnity Insurance.
Means a person registered by the JFSC under Article?9 of the FS(J)L to carry on investment business as defined under Article 2(2) of the FS(J)L.
Means the legislative and regulatory requirements established in a jurisdiction that are relevant to a registered person’s class(s) of investment business.
Relevant AML/CFT Handbook
Means the relevant Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism, issued by the JFSC.
火焰喷射器Glossary terms relating to client classification火焰喷射器
Has the same meaning as provided by Article 1 of the FS(J)L, namely:
“client”, in relation to a registered person, means a person, whether resident on or off Jersey, with or for whom the registered person transacts or has transacted financial service business (other than trust company business) or gives or has given advice about financial service business (other than trust company business)”.
Means a client that is not a Professional Client.
Means a client that is a per se Professional Client or an Elective Professional Client.
Per se Professional client
Means either a Large Undertaking or Professional Investor.
Means a client in relation to which at least two of the following three criteria are satisfied:
? Balance sheet total assets of not less than ?13,000,000;
? Net turnover of “?26,000,000 or greater; or
? Net assets of ?1,300,000 or greater.
? A government, local authority, public authority or supra-national body (wherever established); or
? A person, partnership, unincorporated association or body corporate whose ordinary business or professional activity includes or it is reasonable to expect that it includes acquiring, underwriting, managing, holding or disposing of investments whether as principal or agent or the giving of advice on investments.
Elective Professional Client
Means a Retail Client who has requested to be, and been reclassified by the registered person, in accordance with paragraph 3.8, as a Professional Client.
火焰喷射器Power exercised and scope火焰喷射器
The Code of Practice for Investment Business (the 火焰喷射器Code火焰喷射器) is issued by the Jersey Financial Services Commission (the 火焰喷射器JFSC火焰喷射器) under powers granted to it by Article 19 of the Financial Services (Jersey) Law 1998, as amended (the 火焰喷射器FS(J)L火焰喷射器). The Code has been prepared and issued for the purpose of setting out the principles and detailed requirements that must be complied with in the conduct of investment business.
The Code applies to all persons registered by the JFSC under Article 9 of the FS(J)L to carry on investment business as defined under Article 2(2) of the FS(J)L (a?火焰喷射器registered火焰喷射器火焰喷射器?火焰喷射器火焰喷射器person火焰喷射器).
Article 9 of the FS(J)L establishes threshold conditions that apply on an on-going basis – the fit and proper assessment – to registered persons, principal persons and key persons. This assessment process includes consideration of integrity, competence, financial standing, structure and organisation.
The JFSC has published a Policy Statement:? Licensing Policy in respect of those that require registration under the FS(J)L Part 2 of which provides further information on the JFSC’s “fit and proper” assessment and paragraph 火焰喷射器4.5 火焰喷射器of which highlights the continuing nature of the fit and proper assessment. The Code assists the JFSC with its on-going consideration of the fitness and propriety of a registered person by setting out actions that the registered person must or must not undertake, which it can then be assessed against.
Persons registered to conduct Class E investment business are permitted to enjoy amended requirements in respect of certain sections of the Code, as set out in the Second Schedule.
Where the Code requires the registered person to provide information to the JFSC, such requirement is established in accordance with the powers provided by Article 8 of the Financial Services Commission (Jersey) Law 1998.
A registered person is reminded that the conduct of investment business involves the carrying on of any of the activities listed in Article 2(2) of the FS(J)L, by way of business in or from within Jersey or, if by a company incorporated in Jersey, in any part of the world; and of the provisions of Article?7 of the FS(J)L in respect of the prohibition of carrying out unauthorised investment business.
火焰喷射器Arrangement of the 火焰喷射器火焰喷射器Code 火焰喷射器
The Code provides enforceable requirements in the form of high level principles supported by detailed rules in the areas of corporate governance, conduct of business and prudential matters and are arranged under seven principles as described below:
Each section of the Code is designed to be understood by reference to its full text including any notes.
火焰喷射器Compliance with the Code火焰喷射器
The Code should be read by registered persons in conjunction with the FS(J)L and its subordinate legislation, together with any conditions attached to a registration held under the FS(J)L, and the relevant Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism, issued by the JFSC (the 火焰喷射器relevant AML/CFT Handbook火焰喷射器).
It is the responsibility of the registered person not only to comply with the Code, but also to implement such additional practices as it considers necessary for the proper management and control of its business. Where a registered person considers that it may not be able to achieve full compliance with the Code for a temporary period (for example, for a short period after first being licensed) it should, in advance, agree a plan of action (to include timescales) with the JFSC to bring itself into full compliance with the Code. In exceptional circumstances where strict adherence to the Code would produce an anomalous result, registered persons may apply to the JFSC for a variation from a Code requirement; this is in addition to those areas where the Code specifically provide for a registered person to apply for a variance to the Code.
Methods of compliance with the provisions of the Code will vary depending on whether Jersey is the home or host jurisdiction of the registered person and the extent of the registered person’s physical presence in the Island or elsewhere:
Failure by a registered person to comply with the Code represents grounds for the JFSC to take regulatory action. Where the JFSC has reason to believe that at any time there has been a failure on the part of a registered person to comply with the Code, it may consider making use of its regulatory powers which, in serious cases, could include the revocation of the registration to conduct investment business.
In addition, failure to comply with the Code may support a decision by the JFSC that, for example, continued non-compliance or other failure to remedy the circumstances giving rise to the breach may be addressed by the issue of a written direction under Article?23 of the FS(J)L. Such a direction might impose requirements on a registered person to do or not to do specified things, including the removal of specified individuals or the cessation of business. In appropriate circumstances a direction can be made public by virtue of Article 25(a) of the FS(J)L. The JFSC also has the power under Article?21A of the Financial Services Commission (Jersey) Law 1998 to impose financial penalties for significant and material contraventions of the Code.
When considering a registered person’s failure to comply with the Codes the JFSC places emphasis on whether or not a registered person conducts its business with integrity and deals with the JFSC in an open and co-operative manner.
Whilst Article 19(3) of the FS(J)L provides that the contravention of the Code shall not of itself render any person liable to proceedings of any kind (excluding regulatory action that may be taken by the JFSC in response to a contravention) or invalidate any transaction, Article?19(4) provides that, subject to a condition of registration indicating that any part or parts of the Code are to be wholly or partly disregarded by a registered person, the Code shall be admissible in evidence in any proceedings if it appears to the court, conducting the proceedings, to be relevant to any questions arising in the proceedings and shall be taken into account in determining any such questions.
Where it appears to the JFSC that a person has failed to comply with the Code, it may issue a public statement under Article 25(b) of the FS(J)L.
In a number of places the Code requires the JFSC to be advised of a matter “in writing”. For the avoidance of doubt, a notification given by email, or by means of the online portal, will be considered by the JFSC to meet that requirement (unless the particular Code requirement specifies otherwise how a notification “in writing” must be given).
火焰喷射器Revision of the Code火焰喷射器
In accordance with Article 19(1)(b) of the FS(J)L, the JFSC may, after consultation with such persons or bodies as appear to be representative of the interests concerned, revise the Code by revoking, varying, amending or adding to its provisions.
? ? In June 2018 the JFSC published Consultation Paper No. 4 (enhancements to the investment business regime) proposing a number of amendments to the Code and, in December 2018, published a feedback paper summarising respondents’ comments and the JFSC’s responses.
? ? In November 2019, the JFSC published Consultation Paper No. 10 proposing a number of miscellaneous amendments to the Code and, in March 2019, published a feedback paper summarising respondents’ comments and the JFSC’s responses.
? ? ?
Rather than detail the amendments here, the JFSC has published a version of the Code that highlights the amendments applied.
This revised Code is effective from 1 June 2019 for all registered persons.
Any person that has made an application to the JFSC which is currently under consideration, should review the Code and contact the JFSC to discuss any areas where compliance on grant of registration may be an issue.
火焰喷射器1.火焰喷射器1.1 火焰喷射器火焰喷射器 Act or refrain from acting; or
火焰喷射器1.火焰喷射器1.2 火焰喷射器火焰喷射器 Contract or have any other arrangement,
So as to avoid, or seek to avoid, any regulatory responsibilities it may have under the Code and the full consequences of not following them unless the Code expressly permits any such avoidance.
火焰喷射器Knowledge of Client火焰喷射器
火焰喷射器2.火焰喷射器7.1 火焰喷射器火焰喷射器 The facts disclosed by that client;
火焰喷射器2.火焰喷射器7.2 火焰喷射器火焰喷射器 The terms of any agreement with that client;
火焰喷射器2.火焰喷射器7.3 火焰喷射器火焰喷射器 The risk tolerance, the willingness and ability to bear losses of that client; and
火焰喷射器2.火焰喷射器7.4 火焰喷射器火焰喷射器 Any other relevant facts about the client of which the registered person is, or reasonably should be, aware.
火焰喷射器2.火焰喷射器8.1 火焰喷射器火焰喷射器 Make available to its client, in a comprehensible and timely manner, appropriate information so as to allow the client to make an informed investment decision;
火焰喷射器2.火焰喷射器8.2 火焰喷射器火焰喷射器 Explain to its client, in writing, details regarding relevant risk warnings;
火焰喷射器2.火焰喷射器8.3 火焰喷射器火焰喷射器 Explain to its client, in writing, which products and services are covered by an investor compensation scheme, including the nature and extent of the scheme, and any which are not;
火焰喷射器2.火焰喷射器8.4 火焰喷射器火焰喷射器 If providing advice comprising of regulated and unregulated services, explain to its client, in writing, which elements of the advice are regulated and which are unregulated;
火焰喷射器2.火焰喷射器8.5 火焰喷射器火焰喷射器 Explain to its client, in writing, details regarding the cost breakdown as required by paragraph 火焰喷射器4.6 火焰喷射器of the Code; and
火焰喷射器2.火焰喷射器8.6 火焰喷射器火焰喷射器 Disclose to its client details of any cooling-off periods that may be a feature of investment products recommended.
火焰喷射器Conflicts of Interest火焰喷射器
火焰喷射器2.火焰喷射器12.1 火焰喷射器火焰喷射器 Disclosure;
火焰喷射器2.火焰喷射器12.2 火焰喷射器火焰喷射器 Applying internal rules of confidentiality;
火焰喷射器2.火焰喷射器12.3 火焰喷射器火焰喷射器 Declining to act; and/or
火焰喷射器2.火焰喷射器12.4 火焰喷射器火焰喷射器 Otherwise as appropriate.
火焰喷射器Switching & Churning火焰喷射器
火焰喷射器2.火焰喷射器16.1 火焰喷射器火焰喷射器 Deal in the investment, or any related investment, on its own account;?
火焰喷射器2.火焰喷射器16.2 火焰喷射器火焰喷射器 Deal in the? investment, or any related investment on behalf of an associate; or
火焰喷射器2.火焰喷射器16.3 火焰喷射器火焰喷射器 Deal ahead of the clients for whom the recommendation, research or analysis was intended if those clients ought to have priority.
火焰喷射器2.火焰喷射器17.1 火焰喷射器火焰喷射器 The publication could not reasonably be considered price sensitive;
火焰喷射器2.火焰喷射器17.2 火焰喷射器火焰喷射器 The registered person is a market maker in the investment concerned and the deal was executed or arranged in good faith;
火焰喷射器2.火焰喷射器17.3 火焰喷射器火焰喷射器 The registered person was dealing in order to fulfil an unsolicited client’s order; or
火焰喷射器2.火焰喷射器17.4 火焰喷射器火焰喷射器 The registered person has reasonable grounds for believing that it needs to deal in the investment concerned in order to fulfil client orders which are likely to result from the publication and that to do so will not cause the price of the investment to move against clients’ interests by a material amount.
火焰喷射器Client 火焰喷射器火焰喷射器Order Priority火焰喷射器
火焰喷射器Fair and Timely Allocation火焰喷射器
1 ? Best possible result should be determined in terms of the total consideration, representing the price of the financial instrument and the costs related to execution, which must include all expenses incurred by the client which are directly related to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.
2 ? Implicit transaction costs such as likelihood of execution and settlement, the size and nature of the order, and market impact, may be given precedence over the immediate price and cost consideration only insofar as they are instrumental in delivering the best possible result in terms of the total consideration to the client.
3 ? A registered person, or its delegates, must not structure or charge its commissions in such a way as to discriminate unfairly between execution venues.
4 ? A registered person should have policies to ensure appropriate transactional cost analysis, including top trading venues, is reviewed at least annually.
火焰喷射器3.火焰喷射器1.1 火焰喷射器火焰喷射器 A registered person must operate an effective corporate governance system that must include the following key elements:
火焰喷射器3.火焰喷射器1.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Satisfies the JFSC it has an adequate regulatory i of control at all times, appropriate to the nature of its business;
火焰喷射器3.火焰喷射器1.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Responsibilities apportioned in such a way that individual responsibilities and accountabilities are clear and there is separation of critical functions, so as to guard against fraud and market abuse; and
火焰喷射器3.火焰喷射器1.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 The business and affairs of the registered person are adequately monitored and controlled at senior management and board level, as appropriate.
火焰喷射器3.火焰喷射器1.2 火焰喷射器火焰喷射器 Specifically with respect to 220.127.116.11:
火焰喷射器3.火焰喷射器1.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 A registered person that is not permitted to control clients’ assets should effectively be directed by at least two appropriately qualified and experienced individuals (otherwise known as the ‘Four Eyes’ principle).
火焰喷射器3.火焰喷射器1.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 A registered person that is permitted to control clients’ assets should effectively be directed by at least three appropriately qualified and experienced individuals (otherwise known as the ‘Six Eyes’ principle).
火焰喷射器3.火焰喷射器1.火焰喷射器2.3 火焰喷射器火焰喷射器火焰喷射器 The relationship between the individuals must be such as to ensure that they can all exercise independent judgement without duress or undue influence from one another.
火焰喷射器3.火焰喷射器1.火焰喷射器2.4 火焰喷射器火焰喷射器火焰喷射器 The regulatory i of control of a registered person must not comprise solely of close family members. Where close family members are eligible to form part of the regulatory i of control, only one member may be counted.
火焰喷射器3.火焰喷射器1.火焰喷射器2.5 火焰喷射器火焰喷射器火焰喷射器 Those individuals comprising the regulatory i of control must be actively involved in the day to day management of the business and be able to exercise executive powers on behalf of the registered person. As such, any directors that are not actively involved (non?executives), or those who are not locally based, may not form part of the regulatory i of control of a registered person.
火焰喷射器3.火焰喷射器1.火焰喷射器2.6 火焰喷射器火焰喷射器火焰喷射器 As soon as a registered person becomes aware that the regulatory i of control requirement will not be maintained it must notify the JFSC in writing. In this respect where a registered person has the minimum individuals comprising the regulatory i of control and one of those individuals is absent from the business for a substantial period of time, the registered person must contact the JFSC to discuss its proposed arrangements such that during this period, the business is managed and controlled by the appropriate number of locally based individuals.
火焰喷射器3.火焰喷射器1.3 火焰喷射器火焰喷射器 Clearly defined procedures must be in place so that there is appropriate oversight by the board of directors and senior management in order to address the principles of risk management:
火焰喷射器3.火焰喷射器1.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 An assessment of the risks present in the registered person’s business must be made, and those risks must be documented, as must the ways in which they are to be monitored and controlled;
火焰喷射器3.火焰喷射器1.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 The registered person must maintain accurate and reliable information systems; and
火焰喷射器3.火焰喷射器1.火焰喷射器3.3 火焰喷射器火焰喷射器火焰喷射器 The registered person must complete timely and appropriate management reporting.
火焰喷射器3.火焰喷射器1.4 火焰喷射器火焰喷射器 All aspects of corporate governance arrangements must be subject to appropriately regular review to ensure their continuing adequacy in light of the registered person’s business activities and risk profiles, and include a periodic self-assessment, or external assessment, of the board’s effectiveness.
1 ? Corporate governance is the system by which an organisation is directed and controlled. A corporate governance framework specifies the distribution of rights and responsibilities among different participants in the organisation and sets out the rules and procedures for making decisions. Risk management is an integral part of the corporate governance framework. In the context of Principle 3, “risk” refers to 火焰喷射器all火焰喷射器 the risks that a registered person faces, or may face, as a business enterprise.
2 ? Article 74(1) of the Companies (Jersey) Law 1991 states:
“A director, in exercising the director’s powers and discharging the director’s duties, shall –
(a) Act honestly and in good faith with a view to the best interests of the company; and
(b) Exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.”
3 ? Depending on the circumstances of the registered person, the JFSC may permit the inclusion of an individual who is actively involved in the day to day management of the business (a senior manager) when considering the regulatory i of control. In this scenario, the JFSC will consider the fitness and propriety of senior managers using the procedure established for considering principal persons and key persons.
4 ? For the purpose of 18.104.22.168, all individuals having up to date job descriptions may best evidence apportionment of responsibilities. However, the terms of reference relating to particular offices or committees, or Board resolutions, may also demonstrate apportionment of responsibilities.
5 ? The requirements set out under paragraph 火焰喷射器3.1.1 deal with both prudential and conduct of business issues referring as they do, to the 火焰喷射器direction of the business of the registered person itself火焰喷射器火焰喷射器. 火焰喷射器As such, this is not a provision that directly governs, for instance, appropriate signatory arrangements for the execution of a specific transaction or exercise of a particular discretion.
6 ? For the purposes of 22.214.171.124, “close family” comprises spouses (including co-habitees), civil partners, children, dependants, parents, brothers, and sisters.
7 ? With respect to 126.96.36.199, the JFSC considers a period in excess of four weeks to constitute a substantial absence from the registered person.
火焰喷射器3.火焰喷射器2.1 火焰喷射器火焰喷射器 A registered person must:
火焰喷射器3.火焰喷射器2.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Operate robust arrangements for meeting the standards and requirements of the regulatory framework, including:
3.火焰喷射器2.火焰喷射器1.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Maintaining, and testing adherence to, a policies and procedures manual covering the operation of the business,
3.火焰喷射器2.火焰喷射器1.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Establishing effective complaints handling systems,
3.火焰喷射器2.火焰喷射器1.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Ensuring adequate supervision of direct and indirect employees,
3.火焰喷射器2.火焰喷射器1.火焰喷射器1.4 火焰喷射器火焰喷射器火焰喷射器 Maintaining procedures governing sole, dual or multiple authorisations for handling both the registered person’s and client assets, and for reconciling movements in client assets, and for guarding against involvement in financial crime (including the detection and prevention of money laundering), and
3.火焰喷射器2.火焰喷射器1.火焰喷射器1.5 火焰喷射器火焰喷射器火焰喷射器 Ensuring that all transactions or decisions are appropriately authorised by persons with the requisite knowledge and experience to effect such transactions or make such decisions;
火焰喷射器3.火焰喷射器2.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Undertake a periodic review of the internal control systems to ensure that they continue to work effectively;
火焰喷射器3.火焰喷射器2.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Keep adequate, orderly and up-to-date records which must include but are not limited to:
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 Its business transactions,
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 Its financial position,
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.3 火焰喷射器火焰喷射器火焰喷射器 Its internal organisation,
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.4 火焰喷射器火焰喷射器火焰喷射器 Directors’ and staff own account dealings,
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.5 火焰喷射器火焰喷射器火焰喷射器 Its risk management systems,
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.6 火焰喷射器火焰喷射器火焰喷射器 Its board or management minutes, and
3.火焰喷射器2.火焰喷射器1.火焰喷射器3.7 火焰喷射器火焰喷射器火焰喷射器 The relationship between the legal persons/ arrangements forming part of the group subject to registration under the FS(J)L;
火焰喷射器3.火焰喷射器2.火焰喷射器1.4 火焰喷射器火焰喷射器火焰喷射器 Ensure that adequate business resumption, disaster recovery and other contingency arrangements are in place and tested at appropriate intervals;
火焰喷射器3.火焰喷射器2.火焰喷射器1.5 火焰喷射器火焰喷射器火焰喷射器 Ensure that systems are in place to enable management to guard properly against involvement in financial crime, including fraud, market abuse, money laundering and the financing of terrorism;
火焰喷射器3.火焰喷射器2.火焰喷射器1.6 火焰喷射器火焰喷射器火焰喷射器 Comply with all relevant legislation, requirements and guidance to counter financial crime including fraud, market abuse, money laundering and the financing of terrorism;?
火焰喷射器3.火焰喷射器2.火焰喷射器1.7 火焰喷射器火焰喷射器火焰喷射器 Have due regard to the principles of the sound business practice policy[i] document issued by the JFSC, irrespective of the jurisdiction in which the entity that it is providing services to was incorporated; and
火焰喷射器3.火焰喷射器2.火焰喷射器1.8 火焰喷射器火焰喷射器火焰喷射器 Comply with the JFSC’s policy on outsourcing as may be updated from time to time.
火焰喷射器3.火焰喷射器2.2 火焰喷射器火焰喷射器 Where a registered person controls client money it should implement an independent review of the controls over client money on, at least, an annual basis:
火焰喷射器3.火焰喷射器2.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 The review shall verify the effectiveness of the registered person’s relevant controls over client money with particular regard to those controls that prevent the:
3.火焰喷射器2.火焰喷射器2.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Loss;
3.火焰喷射器2.火焰喷射器2.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Misuse; and
3.火焰喷射器2.火焰喷射器2.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Misappropriation of client money.
火焰喷射器3.火焰喷射器2.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 The review should be performed by an appropriately qualified independent person who may be an internal or external party:
3.火焰喷射器2.火焰喷射器2.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 Where an internal party performs such review they shall be operationally independent from the individuals or functions within the registered person responsible for the operation of the controls under review.
1 ? There is no specific requirement for a registered person to be subject to an internal audit review. However, the JFSC will recognise and take comfort from those registered persons that have effective internal audit controls, or where such functions are provided from elsewhere within a group.
2 ? Failure to comply with legislation to counter money laundering and the financing of terrorism or the relevant AML/CFT Handbook may form the basis for regulatory action by the JFSC. This is in addition to any legal action that may be taken by the judicial authorities for failure to comply with legislation to counter money laundering and the financing of terrorism.
3 ? With respect to 188.8.131.52, the JFSC’s policy on outsourcing is available from the JFSC’s website.
4 ? With respect to the various risk management provisions under principle 3 of the Code, particularly 3.1, 3.2 and 火焰喷射器3.7, it is expected that a registered person will have specifically considered, amongst other risks, the risk of a cyber security incident, and have in place a corresponding documented policy to identify assets and risks, to protect them, to quickly detect potential cyber security incidents, to respond to contain the impact of an incident and to recover from it.
火焰喷射器3.火焰喷射器3.1 火焰喷射器火焰喷射器 A registered person must:
火焰喷射器3.火焰喷射器3.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Ensure its directors, senior managers and all other employees are fit and proper for their roles;
火焰喷射器3.火焰喷射器3.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Assess and monitor the working practices, competence and probity of its directors, partners, senior managers and other employees;
火焰喷射器3.火焰喷射器3.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Obtain and retain documentary evidence, which is used by the registered person to assess, both initially and on an on-going basis, the competence of its employees. Evidence should include, but not be limited to:
3.火焰喷射器3.火焰喷射器1.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 Employer references, and
3.火焰喷射器3.火焰喷射器1.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 Copies of documentary evidence of qualifications held by investment employees;
火焰喷射器3.火焰喷射器3.火焰喷射器1.4 火焰喷射器火焰喷射器火焰喷射器 Ensure that its employees comply with the following competency requirements:
3.火焰喷射器3.火焰喷射器1.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 All investment employees must have obtained a professional qualification appropriate to their role (an up-to-date table of professional qualifications acceptable to the JFSC is provided in the Guidance Note: Professional Qualifications (Investment Business) available from the JFSC’s website, www.jerseyfsc.org),
3.火焰喷射器3.火焰喷射器1.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 All investment employees must be sufficiently experienced to discharge properly their duties. Where an individual has recently qualified as an investment employee, or is new to their role, the registered person must take steps to monitor their working practices over and above the ordinary employee monitoring requirements required by 184.108.40.206 of the Code, and
3.火焰喷射器3.火焰喷射器1.火焰喷射器4.3 火焰喷射器火焰喷射器火焰喷射器 All employees, including directors and senior managers, who do not meet the definition of an investment employee will be expected to possess professional qualifications and/or experience appropriate to their role.
火焰喷射器3.火焰喷射器3.2 火焰喷射器火焰喷射器 With respect to:
火焰喷射器3.火焰喷射器3.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 All investment employees (apart from those that meet the exemption criteria of 220.127.116.11) providing investment advice to Retail Clients must hold a professional qualification at Qualifications and Credit Framework level 4 or above, or level 3 with gap-fill where relevant.
火焰喷射器3.火焰喷射器3.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 Paragraph 18.104.22.168 does not apply to investment employees providing investment advice to Retail Clients on long term insurance contracts which fall within classes I, II or IV of Part 1 of Schedule 1 to the Insurance Business (Jersey) Law 1996, where the amount paid out does not depend on investment performance.
火焰喷射器3.火焰喷射器3.3 火焰喷射器火焰喷射器 Where complex transactions are undertaken or complex investments are advised upon, the registered person must consider requiring more specialised qualifications, experience and other competencies such that it can demonstrate that investment employees are competent and adequately supervised.
火焰喷射器3.火焰喷射器3.4 火焰喷射器火焰喷射器 On submission of a written request by the registered person, the JFSC will consider, on a case-by-case basis, the acceptability or otherwise of any other qualifications held by an investment employee. Such a request must:
火焰喷射器3.火焰喷射器3.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 Include a written explanation as to why the registered person considers the alternative qualification to be appropriate for that employee; and
火焰喷射器3.火焰喷射器3.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 Must be accompanied by a copy of the syllabus studied or equivalent where practical.
火焰喷射器3.火焰喷射器3.5 火焰喷射器火焰喷射器 The JFSC will accept as relevant qualifications those that it considers to be equal to, or higher than, those listed in the respective Table.
火焰喷射器3.火焰喷射器3.6 火焰喷射器火焰喷射器 The JFSC may, on written application by the registered person, grant exemptions from the requirement to hold qualifications referred to in 22.214.171.124.1 and 3.3.2 of the Code. In doing so, the JFSC will pay regard to any previous exemption granted in respect of the investment employee on whose behalf the exemption is being sought, as well as the nature of the role being performed and the registered person’s systems and controls.
1 ? The definition of what constitutes an “investment employee” is given in the Investment Business Fees Notice published by the JFSC and amended from time to time.
2 ? Paragraphs 126.96.36.199 and 188.8.131.52 above are subject to the Rehabilitation of Offenders (Jersey) Law 2001 which prohibits an employer requesting information from its employees and prospective employees about convictions that are “spent”. This general prohibition is subject to exception provided by the Rehabilitation of Offenders (Exceptions) (Jersey) Regulations 2002, as amended (the 火焰喷射器Exceptions Regulation火焰喷射器火焰喷射器s火焰喷射器).
3 ? Regulation 21 of the Exceptions Regulations permits a registered person, applicants and those intending to apply for registration to request information about all “relevant offences”, whether “spent” or not, from employees holding certain positions and applicants for such positions. To be consistent with the Code, it is necessary for employers to make use of such exceptions when screening employees who are subject to these exceptions.
4 ? “Employees” as identified in this section includes not only direct employees, but also indirect employees, such as temporary and contracted employees, self-employed representatives and other contracted service providers.
5 ? The table of acceptable qualifications as set out in the Guidance Note on Professional Qualifications published on the JFSC’s website forms an integral part of the Code. So as to ensure that this table is properly maintained, the JFSC will review and update the table on a periodic basis.
火焰喷射器3.火焰喷射器4.1 火焰喷射器火焰喷射器 CPD is a compulsory requirement for all investment employees and the compliance officer. A registered person is required to maintain CPD records for all such employees although it is permissible for a registered person to require its employees to keep their own records and account to a registered person on a regular basis.
火焰喷射器3.火焰喷射器4.2 火焰喷射器火焰喷射器 A minimum of 35 hours per year of CPD must be undertaken by investment employees and 25 hours per year by the compliance officer. In both cases, a maximum of five hours may be achieved through relevant reading.
火焰喷射器3.火焰喷射器4.3 火焰喷射器火焰喷射器 A registered person is responsible for ensuring that the CPD undertaken by its investment employees and the compliance officer is appropriate to their role. This consideration must take into account the employee’s job description and current duties and may include future development needs.
火焰喷射器3.火焰喷射器4.4 火焰喷射器火焰喷射器 The onus is on each registered person to demonstrate the adequacy of its CPD regime.
1 ? It is recognised that some investment employees may be members of professional bodies that have their own CPD requirements as a condition of continued membership. In these circumstances, it is a matter for a registered person:
(a) Firstly, to ensure that the necessary opportunity is given to such investment employees to enable them to comply with these professional requirements; and,
(b) Secondly, to take a view on the extent to which such professional CPD is relevant to the registered person’s business and may therefore be counted towards the employees’ work-related CPD.
2 ? It is expected that investment employees will achieve their CPD targets by adhering to the requirements of their own relevant professional body. However, where the relevant professional body does not prescribe how CPD should be achieved, there are a number of acceptable ways to attain the minimum CPD requirement, including, but not restricted to:
(a) Studying for further qualifications;
(b) In-house training, seminars, conferences and product presentations;
(c) ? Computer-based training;
(d) One-to-one tuition;
(e) Reading relevant professional and trade magazines;
(f) Personal structured study; and
(g) Attending external training courses.
火焰喷射器3.火焰喷射器5.1 火焰喷射器火焰喷射器 The senior management (most often the board of directors) of the registered person is responsible for ensuring that it has robust arrangements for compliance with the regulatory framework. These must include:
火焰喷射器3.火焰喷射器5.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Approval of a compliance policy;
火焰喷射器3.火焰喷射器5.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Establishment of a permanent and effective compliance function, whose responsibilities are formally documented;
火焰喷射器3.火焰喷射器5.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Assessment, on at least an annual basis, of the extent to which compliance risk is managed effectively; and
火焰喷射器3.火焰喷射器5.火焰喷射器1.4 火焰喷射器火焰喷射器火焰喷射器 Appointment of an appropriately skilled and experienced person as its Compliance Officer.
火焰喷射器3.火焰喷射器5.2 火焰喷射器火焰喷射器 The compliance function must:
火焰喷射器3.火焰喷射器5.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 Have appropriate independence;
火焰喷射器3.火焰喷射器5.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 Have direct access to the senior management and Jersey board of directors or equivalent;
火焰喷射器3.火焰喷射器5.火焰喷射器2.3 火焰喷射器火焰喷射器火焰喷射器 Have unfettered access to all business lines and support departments and information necessary to properly discharge the responsibilities of the function;
火焰喷射器3.火焰喷射器5.火焰喷射器2.4 火焰喷射器火焰喷射器火焰喷射器 Act as the principal point of contact for employees on day-to-day regulatory matters; and
火焰喷射器3.火焰喷射器5.火焰喷射器2.5 火焰喷射器火焰喷射器火焰喷射器 Be able to devote sufficient time, and have sufficient resources to discharge properly the responsibilities of the function, including implementation of the compliance policy.
火焰喷射器3.火焰喷射器5.3 火焰喷射器火焰喷射器 The registered person must ensure that the Compliance Officer is responsible for:
火焰喷射器3.火焰喷射器5.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 Ensuring appropriate monitoring of operational performance and managing regulatory and compliance risk within the registered person which includes:
3.火焰喷射器5.火焰喷射器3.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Monitoring that the internal policies and procedures are being consistently and effectively adhered to;
3.火焰喷射器5.火焰喷射器3.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Assessing, and recommending amendments to, internal systems and controls as well as policies and procedures to facilitate compliance with the regulatory framework; and
3.火焰喷射器5.火焰喷射器3.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Where appropriate, promptly instigating action to remedy any deficiencies in such arrangements;
火焰喷射器3.火焰喷射器5.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 Providing senior management and the board of directors of the registered person with regular written reports in respect of the registered person’s compliance with the requirements of the FS(J)L, Orders (issued under the FS(J)L) and the Code; and
火焰喷射器3.火焰喷射器5.火焰喷射器3.3 火焰喷射器火焰喷射器火焰喷射器 Acting as the principal point of contact with the JFSC on day?to-day regulatory matters unless otherwise agreed with the JFSC.
火焰喷射器3.火焰喷射器5.4 火焰喷射器火焰喷射器 The Compliance Officer must:
火焰喷射器3.火焰喷射器5.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 Be an individual operating under a contract of employment directly with the registered person or another company within the same group;
火焰喷射器3.火焰喷射器5.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 Be based in Jersey;
火焰喷射器3.火焰喷射器5.火焰喷射器4.3 火焰喷射器火焰喷射器火焰喷射器 Have sufficient experience and skills, which includes holding an appropriate compliance or other qualification or be studying towards such a qualification; and
火焰喷射器3.火焰喷射器5.火焰喷射器4.4 火焰喷射器火焰喷射器火焰喷射器 Have appropriate status within the registered person to ensure that senior management and the board of directors of the registered person react to and determine whether to act upon his or her recommendations.
火焰喷射器3.火焰喷射器5.5 火焰喷射器火焰喷射器 In exceptional circumstances the JFSC may, on written application from a registered person, grant an exemption from the requirement under 184.108.40.206 of the Code where, for example, the registered person operates in Jersey as a branch and therefore relies upon a Compliance department based outside of Jersey. In considering such a request, the JFSC will pay particular regard to the extent to which the Jersey operation is subject to compliance monitoring and who has been nominated as the Jersey based compliance contact.
火焰喷射器3.火焰喷射器5.6 火焰喷射器火焰喷射器 In the event that a Compliance Officer is temporarily unable to fulfil his or her responsibilities the registered person must:
火焰喷射器3.火焰喷射器5.火焰喷射器6.1 火焰喷射器火焰喷射器火焰喷射器 Notify the JFSC; and
火焰喷射器3.火焰喷射器5.火焰喷射器6.2 火焰喷射器火焰喷射器火焰喷射器 Designate an appropriately skilled and experienced alternate.
火焰喷射器3.火焰喷射器5.7 火焰喷射器火焰喷射器 With respect to 3.5.6, notification to the JFSC must be made, in writing, as soon as the registered person becomes aware that the compliance officer will be temporarily unable to fulfil their responsibilities.
1 ? It is a requirement of the Money Laundering (Jersey) Order 2008 (the 火焰喷射器Money Laundering Order火焰喷射器) that a registered person must appoint a Money Laundering Reporting Officer and a Money Laundering Compliance Officer. The relevant AML/CFT Handbook sets out additional requirements for registered persons.
2 ? The roles of Compliance Officer, Money Laundering Reporting Officer and Money Laundering Compliance Officer meet the definition of a key person as defined by Article 1 of the FS(J)L; consequently, Article 14 of the FS(J)L applies.
3 ? Where operating volumes are at a level for it to be appropriate, the Compliance Officer, the Money Laundering Reporting Officer and the Money Laundering Compliance Officer may be the same person. It is also recognised that there may be registered persons where the compliance function is the Compliance Officer.
4 ? When considering a key person application, the JFSC will not only look at the suitability of the qualifications and experience of the applicant, but will also consider this in the context of the qualification and experience of the balance of the board and/or other key persons employed by the registered person.
5 ? With respect to 3.5.6, the JFSC considers a period in excess of four weeks to constitute being temporarily unable to fulfil their responsibilities.
火焰喷射器3.火焰喷射器6.1 火焰喷射器火焰喷射器 A registered person must establish and maintain an effective complaint handling system and procedures and in particular must:
火焰喷射器3.火焰喷射器6.火焰喷射器1.1 火焰喷射器火焰喷射器火焰喷射器 Maintain adequate records of complaints against the registered person, including a central register that contains details of any agreed compensation or compromise;
火焰喷射器3.火焰喷射器6.火焰喷射器1.2 火焰喷射器火焰喷射器火焰喷射器 Handle complaints transparently, competently, diligently, and impartially;
火焰喷射器3.火焰喷射器6.火焰喷射器1.3 火焰喷射器火焰喷射器火焰喷射器 Inform clients of how complaints may be made and how they may expect these to be responded to;
火焰喷射器3.火焰喷射器6.火焰喷射器1.4 火焰喷射器火焰喷射器火焰喷射器 Provide, in writing, within five business days, unless expressly agreed by the complainant to the contrary, an acknowledgement that their complaint has been received and confirm that the complaint is being considered;
火焰喷射器3.火焰喷射器6.火焰喷射器1.5 火焰喷射器火焰喷射器火焰喷射器 Keep the complainant informed about the progress of their complaint, including details of any actions being taken to resolve their complaint;
火焰喷射器3.火焰喷射器6.火焰喷射器1.6 火焰喷射器火焰喷射器火焰喷射器 Advise the complainant in writing when the complaint is considered closed and where the complaint is not upheld, clearly state the reason(s) for rejecting the complaint;
火焰喷射器3.火焰喷射器6.火焰喷射器1.7 火焰喷射器火焰喷射器火焰喷射器 At the same time, advise the complainant in writing:
3.火焰喷射器6.火焰喷射器1.火焰喷射器7.1 火焰喷射器火焰喷射器火焰喷射器 That if they are dissatisfied with its response to the complaint, the complainant may be able to refer the complaint to the Channel Islands Financial Ombudsman;
3.火焰喷射器6.火焰喷射器1.火焰喷射器7.2 火焰喷射器火焰喷射器火焰喷射器 Of the contact details for the Channel Islands Financial Ombudsman (namely its website address, postal address, email address and telephone number);
火焰喷射器3.火焰喷射器6.火焰喷射器1.8 火焰喷射器火焰喷射器火焰喷射器 Comply with the requirement of 5.2.11, in relation to determining whether a complaint gives rise to any notification requirement under its professional indemnity insurance policy; and
火焰喷射器3.火焰喷射器6.火焰喷射器1.9 火焰喷射器火焰喷射器火焰喷射器 Consider the complaints data for patterns emerging.
火焰喷射器3.火焰喷射器6.2 火焰喷射器火焰喷射器 As soon as it becomes aware, a registered person must notify the JFSC in writing, if:
火焰喷射器3.火焰喷射器6.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 A complaint is not satisfactorily resolved within three months of the client having lodged a complaint;
火焰喷射器3.火焰喷射器6.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 The Channel Islands Financial Ombudsman, using the powers it has under Article 16 of the Financial Services Ombudsman (Jersey) Law 2014, requires the registered person to pay compensation to a complainant or directs the registered person to take other specified steps in relation to a complainant;
火焰喷射器3.火焰喷射器6.火焰喷射器2.3 火焰喷射器火焰喷射器火焰喷射器 A pattern to complaints is identified;
火焰喷射器3.火焰喷射器6.火焰喷射器2.4 火焰喷射器火焰喷射器火焰喷射器 Any complaint has resulted in the registered person making a claim on its Professional Indemnity Insurance policy; or
火焰喷射器3.火焰喷射器6.火焰喷射器2.5 火焰喷射器火焰喷射器火焰喷射器 Any complaint has resulted in the registered person having made any type of settlement worth in excess of ?1,000.
火焰喷射器3.火焰喷射器6.3 火焰喷射器火焰喷射器 A registered person must deal with the Channel Islands Financial Ombudsman in an open and co-operative manner.
1 ? With respect to 3.6.1, a registered person may wish to consider adopting and following the “Model complaint-handling procedure for financial services providers” published by the Channel Islands Financial Ombudsman.
2 ? With respect to 220.127.116.11, the JFSC considers that it would be inconsistent with that requirement if a registered person were to act in a way that may undermine the integrity of the complaints-resolution framework provided under the Financial Services Ombudsman (Jersey) Law 2014, such as:
(a) Making a settlement offer that is conditional upon the complainant not referring the matter to the Channel Islands Financial Ombudsman. (The complainant may want to seek independent advice from the Channel Islands Financial Ombudsman before deciding whether or not to accept the offer.) This would not preclude a registered person – if it has fully informed the complainant of their right to refer their complaint to the Channel Islands Financial Ombudsman – asking the complainant to sign a full and final release as part of the settlement if the offer is accepted;
(b) Misleading a complainant about their right to refer a complaint to the Channel Islands Financial Ombudsman.
(c) ? Offering a view as to the likelihood of the Channel Islands Financial Ombudsman ruling in favour of the complainant.
3 ? With respect to 3.6.2, “as soon as it becomes aware” applies from the point at which the registered person knows, or has reasonable grounds for believing, that any of the matters stated has occurred or may be about to occur, even where it is outside the control of the registered person.
火焰喷射器3.火焰喷射器7.1 火焰喷射器火焰喷射器 The registered person must ensure that it has appropriate record keeping arrangements for compliance with applicable laws, (including anti?money laundering legislation and company legislation) Orders and regulatory requirements, set by the Code or the relevant AML/CFT Handbook.
火焰喷射器3.火焰喷射器7.2 火焰喷射器火焰喷射器 A registered person is expected to maintain its books and records in a language understood by the employees of the business. These must be translated into English at the request of the JFSC. A registered person must be able to readily retrieve them in Jersey and, if kept otherwise than in legible form, maintain them so as to be readable at a computer terminal in Jersey so that they may be produced in legible form without delay.
火焰喷射器3.火焰喷射器7.3 火焰喷射器火焰喷射器 A registered person must have a clearly documented policy and procedure regarding record retention that includes:
火焰喷射器3.火焰喷射器7.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 Periodic review of the accessibility and condition of paper and electronic records;
火焰喷射器3.火焰喷射器7.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 The adequacy of the safekeeping of records; and
火焰喷射器3.火焰喷射器7.火焰喷射器3.3 火焰喷射器火焰喷射器火焰喷射器 Periodic testing of procedures relating to the retrieval of records.
火焰喷射器3.火焰喷射器7.4 火焰喷射器火焰喷射器 A registered person that is ceasing to conduct investment business is required to arrange appropriate record keeping arrangements as part of a cessation of business plan.
火焰喷射器3.火焰喷射器7.5 火焰喷射器火焰喷射器 A registered person must maintain an audit trail of material changes to the policies and procedures manual that covers the operation of the registered person, which is updated as required. When updates are made, the effective date of such updates must be recorded and the superseded records maintained.
火焰喷射器3.火焰喷射器7.6 火焰喷射器火焰喷射器 The period for which business records must be kept is the later of:
火焰喷射器3.火焰喷射器7.火焰喷射器6.1 火焰喷射器火焰喷射器火焰喷射器 The period required for any particular record by any law;
火焰喷射器3.火焰喷射器7.火焰喷射器6.2 火焰喷射器火焰喷射器火焰喷射器 The relevant AML/CFT Handbook; or
火焰喷射器3.火焰喷射器7.火焰喷射器6.3 火焰喷射器火焰喷射器火焰喷射器 Where records relate to significant corporate governance matters, such as management meeting minutes and risk assessment matters, or are records relating to requirements established by the Code – ten years from the date of the record.
火焰喷射器3.火焰喷射器7.7 火焰喷射器火焰喷射器 A registered person is expected to keep adequate, orderly and up to date client records which are in line with the requirements established by Part?4 of the Money Laundering Order and as set out in the relevant AML/CFT Handbook.
火焰喷射器3.火焰喷射器7.8 火焰喷射器火焰喷射器 In addition to the records required by the Money Laundering Order, a minimum retention period must be applied for any records relating to the requirements established by the Code, of ten years from the date of the record.
1 ? The Code does not establish any retention requirements for tape recordings of telephone conversations.
2 ? With respect to 3.7.5, a change to the policies and procedures manual that necessitates communication to impacted staff is a material change.
3 ? With respect to 18.104.22.168, the JFSC considers that laws relating to companies, tax, proceeds of crime, and data protection may be relevant.
火焰喷射器3.火焰喷射器8.1 火焰喷射器火焰喷射器 Where a registered person carries on Class C or Class D investment business, the registered person must establish, implement and maintain written policies, procedures and controls to classify its Class C or Class D clients, as Retail Clients or Professional Clients.
火焰喷射器3.火焰喷射器8.2 火焰喷射器火焰喷射器 The JFSC accepts that some clients, who do not meet the definition of either a Large Undertaking or Professional Investor (per se Professional Client), may be classified as a Professional Client (an Elective Professional Client). A registered person may classify a client as a Professional Client if the registered person:
火焰喷射器3.火焰喷射器8.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 Undertakes an adequate assessment of the expertise, experience and knowledge of the client; and
火焰喷射器3.火焰喷射器8.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 Forms an opinion that, in light of the nature of the transactions or services envisaged, the client is capable of making their own investment decisions and understanding the risks involved. In forming this opinion the registered person must, at a minimum, document its consideration of:
3.火焰喷射器8.火焰喷射器2.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 The frequency of the client’s dealings in the kind of investments which are to be the subject matter of the registered person’s advice;
3.火焰喷射器8.火焰喷射器2.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 The size of the client’s portfolio, defined as including cash deposits and investments as defined by Schedule 1 to the FS(J)L; and
3.火焰喷射器8.火焰喷射器2.火焰喷射器2.3 火焰喷射器火焰喷射器火焰喷射器 The client’s relevant professional expertise.
火焰喷射器3.火焰喷射器8.3 火焰喷射器火焰喷射器 With respect to 3.8.2, if the client is not an individual (for example a company, a foundation, a trust or a partnership), the registered person must perform the assessment in relation to the individual(s) authorised to carry out transactions on behalf of the client.
火焰喷射器3.火焰喷射器8.4 火焰喷射器火焰喷射器 Before a client is classified as an Elective Professional Client:
火焰喷射器3.火焰喷射器8.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 A registered person must provide the client with a clear written warning that, as an Elective Professional Client, the investment employee that provides the advice is not bound by paragraph 火焰喷射器3.3.2 of the Code and the registered person may receive remuneration by way of product commission;
火焰喷射器3.火焰喷射器8.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 The client must state to the registered person, in writing and in a separate document from any contract of engagement with the registered person, that they:
3.火焰喷射器8.火焰喷射器4.火焰喷射器2.1 火焰喷射器火焰喷射器火焰喷射器 Wish to be an Elective Professional Client, either generally or in respect of a particular service or transaction or type of transaction or product; and
3.火焰喷射器8.火焰喷射器4.火焰喷射器2.2 火焰喷射器火焰喷射器火焰喷射器 Are aware of the consequences of such an election.
火焰喷射器3.火焰喷射器8.5 火焰喷射器火焰喷射器 Where a registered person becomes aware that the circumstances of an Elective Professional Client have changed to an extent that the client no longer fulfils the criteria to be an Elective Professional Client, the registered person must re-classify the Elective Professional Client as a Retail Client and inform the client, in writing, without delay.
火焰喷射器3.火焰喷射器8.6 火焰喷射器火焰喷射器 Where a registered person carries on Class C or Class D investment business and the actions described in 3.8.1 have resulted in some clients being classified as Retail Clients, a registered person must establish, implement and maintain written internal policies, procedures and controls to identify the residency of its Retail Clients. A registered person must identify the residency of a Retail Client such that it is able to comply with 4.8 of the Code.
火焰喷射器3.火焰喷射器8.7 火焰喷射器火焰喷射器 With respect to 3.8.6, where a Retail Client has provided the registered person with two addresses (a Jersey address and a non-Jersey address), it is for the registered person to demonstrate that it has established with which address (and therefore with which jurisdiction) the Retail Client has their most substantial connection. The registered person must treat the client as resident in the jurisdiction of that address.
1 ? With respect to 3.8.1, the JFSC recognises that a registered person may adopt a policy whereby all clients are classified as Retail Clients. Before adopting such a policy the registered person is encouraged to fully consider the implications of such a decision on paragraphs 火焰喷射器3.火焰喷射器8.6 火焰喷射器火焰喷射器and 火焰喷射器4.8 火焰喷射器of the Code.
2 ? With respect to 22.214.171.124.2, the JFSC considers it unlikely that a client with a portfolio of less than ?500,000 could properly be classified as an Elective Professional Client.
3 ? With respect to 3.8.7, the JFSC would not expect that a Retail Client who is known to be resident in Jersey for tax purposes and has a Jersey correspondence address in the registered person’s records (verified for AML/CFT purposes), would be treated by the registered person as non-resident in Jersey.
火焰喷射器3.火焰喷射器9.1 火焰喷射器火焰喷射器 A registered person must not pay a financial penalty imposed by the JFSC on any other person.
火焰喷射器4.火焰喷射器3.1 火焰喷射器火焰喷射器 Be distinguishable from marketing or promotional material;
火焰喷射器4.火焰喷射器3.2 火焰喷射器火焰喷射器 Be consistent with the Code;
火焰喷射器4.火焰喷射器3.3 火焰喷射器火焰喷射器 Be clearly expressed in plain language that only uses technical or legal terms where absolutely necessary;
火焰喷射器4.火焰喷射器3.4 火焰喷射器火焰喷射器 Be provided prior to the provision of any investment business service, except when it is impractical to do so, in which case the document shall be provided at the earliest available opportunity;
火焰喷射器4.火焰喷射器3.5 火焰喷射器火焰喷射器 Explain whether the registered person is acting as a principal or as the agent of the client or any other person;
火焰喷射器4.火焰喷射器3.6 火焰喷射器火焰喷射器 Where the registered person holds client money, set out the terms on which that money is held; and
火焰喷射器4.火焰喷射器3.7 火焰喷射器火焰喷射器 Include all appropriate information relevant to the service that will be provided.
火焰喷射器4.火焰喷射器7.1 火焰喷射器火焰喷射器 Make it clear to its clients, at the outset of the relationship, the specific type of associated fees/charges that will be payable, including, where appropriate, estimates (either monetary or percentage); and
火焰喷射器4.火焰喷射器7.2 火焰喷射器火焰喷射器 Advise its clients, in writing and on a timely basis, of all fees and charges actually incurred.
火焰喷射器4.火焰喷射器8.1 火焰喷射器火焰喷射器 Where the Retail Client enters into or has entered into a long term insurance contract, as described in paragraph 126.96.36.199;
火焰喷射器4.火焰喷射器8.2 火焰喷射器火焰喷射器 Where the Retail Client received investment advice and based on that investment advice entered into an investment, on or before 31 December 2013, for which trail commission remains payable; and
火焰喷射器4.火焰喷射器8.3 火焰喷射器火焰喷射器 With respect to Retail Clients that transfer a portfolio of investments to a registered person, the registered person may be remunerated by trail commission payable on the existing investment portfolio in the following circumstances:
火焰喷射器4.火焰喷射器8.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 The investment permits the transference of trail commission to another registered person;
火焰喷射器4.火焰喷射器8.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 The registered person must advise the Retail Client that they intend to make an application to re-register the investment and receive trail commission (this advice must include the amount of trail commission – monetary or percentage figure); and
火焰喷射器4.火焰喷射器8.4 火焰喷射器火焰喷射器 The registered person must provide the Retail Client with an on-going advisory service in return for receiving the trail commission.
1 ? Guidance on clear written communication can be obtained from the Plain English Campaign (http://www.plainenglish.co.uk).
2 ? For the purpose of 4.1, the JFSC considers that, at a minimum, “stationery” includes: headed letter paper; emails sent in lieu of a letter; and facsimiles. The JFSC does not consider the following to be stationery unless they are quite clearly being utilised in lieu of a letter or as advertising material:? text messages; account statements; business cards; and compliment slips.
3 ? For the purpose of 火焰喷射器4.8 火焰喷射器commission does includes monetary and/or non-monetary benefits that may influence a registered person’s decisions.
4 ? For the purpose of 4.8, in respect of non-Jersey resident Retail Clients, the regulations of the respective jurisdictions should be considered carefully.
火焰喷射器5.火焰喷射器1.1 火焰喷射器火焰喷射器 Where a registered person is a Jersey registered company that holds a registration to undertake deposit-taking business, and consequently provides the JFSC with a quarterly prudential report, the Adjusted Net Liquid Assets (ANLA) requirements set by the Code do not apply.
火焰喷射器5.火焰喷射器1.2 火焰喷射器火焰喷射器 Where the registered person operates in Jersey as a branch of a legal entity registered outside Jersey that holds a registration to undertake deposit-taking business and its immediate home regulator applies Basel II prudential requirements or has implemented the 1997 Market Risk Accord then the ANLA requirements set by the Code do not apply. A registered person to whom this paragraph applies must notify the JFSC, in writing.
火焰喷射器5.火焰喷射器1.3 火焰喷射器火焰喷射器 A registered person conducting Classes A, B or C investment business must maintain:
火焰喷射器5.火焰喷射器1.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 A minimum of ?25,000 paid up share capital and a surplus of ANLA over the Total Requirement in the ratio of 110% in accordance with the calculation set out in the First Schedule; and
火焰喷射器5.火焰喷射器1.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 A minimum net assets position of ?25,000 in the registered person’s accounts at all times.
火焰喷射器5.火焰喷射器1.4 火焰喷射器火焰喷射器 A registered person conducting Class D investment business must maintain:
火焰喷射器5.火焰喷射器1.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 A minimum of ?10,000 paid up share capital and a surplus of ANLA over the Total Requirement in the ratio of 110% in accordance with the calculation set out in the First Schedule; and
火焰喷射器5.火焰喷射器1.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 A minimum net assets position of ?10,000 in the registered person’s accounts at all times.
火焰喷射器5.火焰喷射器1.5 火焰喷射器火焰喷射器 Where a registered person does not have issued share capital that meets the requirement of either 188.8.131.52 or 184.108.40.206 (as applicable), the JFSC may deem a registered person to be compliant where the requirement is met by a combination of issued share capital and share premium. In such circumstances, the registered person must discuss its position with the JFSC and, if deemed compliant, the registered person must provide prior written notification, to the JFSC, of any proposed reduction to share premium.
火焰喷射器5.火焰喷射器1.6 火焰喷射器火焰喷射器 Where a registered person has one or more of a Position, Counterparty or Foreign Currency Risk Requirement, the calculation referred to in paragraphs 220.127.116.11 and 18.104.22.168 must be undertaken every business day. A registered person not subject to these risks must complete the calculation at least once every three months however these registered persons must prepare the calculation on a monthly basis or other such period as the JFSC may determine, if either:
火焰喷射器5.火焰喷射器1.火焰喷射器6.1 火焰喷射器火焰喷射器火焰喷射器 A registered person’s ANLA falls below 130% of its Total Requirement; or
火焰喷射器5.火焰喷射器1.火焰喷射器6.2 火焰喷射器火焰喷射器火焰喷射器 An event occurs which has a material adverse effect on the registered person’s financial resources.
火焰喷射器5.火焰喷射器1.7 火焰喷射器火焰喷射器 A registered person is required to immediately notify the JFSC in writing (in addition to any notification obligation under the FS(J)L or the Code):
火焰喷射器5.火焰喷射器1.火焰喷射器7.1 火焰喷射器火焰喷射器火焰喷射器 If its ANLA falls below 130% of its Total Requirement;
火焰喷射器5.火焰喷射器1.火焰喷射器7.2 火焰喷射器火焰喷射器火焰喷射器 If its ANLA falls below 110% of its Total Requirement;
火焰喷射器5.火焰喷射器1.火焰喷射器7.3 火焰喷射器火焰喷射器火焰喷射器 Of any single contingency, financial commitment or exposure exceeding 25% of its ANLA;
火焰喷射器5.火焰喷射器1.火焰喷射器7.4 火焰喷射器火焰喷射器火焰喷射器 Of any instrument, transaction or situation that appears not to be catered for in the First Schedule, or where its application might give a misleading impression of the adequacy of the financial resources; and
火焰喷射器5.火焰喷射器1.火焰喷射器7.5 火焰喷射器火焰喷射器火焰喷射器 If it no longer complies with the requirements of 5.1.3 or 5.1.4 of the Code, as applicable.
火焰喷射器5.火焰喷射器1.8 火焰喷射器火焰喷射器 On submission of a written request by the registered person, the JFSC will consider granting consent to adjust the total liabilities figure by excluding a long term subordinated loan as a liability (Table 3 of the First Schedule). Any request must be accompanied by a signed consent request checklist and such consent is only likely to be granted where:
火焰喷射器5.火焰喷射器1.火焰喷射器8.1 火焰喷射器火焰喷射器火焰喷射器 The subordinated loan is drawn up in accordance with the JFSC’s proforma Subordinated Loan Agreement; and
火焰喷射器5.火焰喷射器1.火焰喷射器8.2 火焰喷射器火焰喷射器火焰喷射器 The subordinated loan is made by an approved lender.
火焰喷射器5.火焰喷射器1.9 火焰喷射器火焰喷射器 The Subordinated Loan Agreement must be signed by authorised signatories of all parties to the agreement, and:
火焰喷射器5.火焰喷射器1.火焰喷射器9.1 火焰喷射器火焰喷射器火焰喷射器 Be for a fixed period of not less than two years; or
火焰喷射器5.火焰喷射器1.火焰喷射器9.2 火焰喷射器火焰喷射器火焰喷射器 Where no fixed term is cited, be subject to a minimum notice period of repayment of at least two years.
火焰喷射器5.火焰喷射器1.10 火焰喷射器火焰喷射器 Where the JFSC has considered and granted a variance in respect of the treatment of a subordinated loan within the ANLA calculation, the amount deducted may not exceed the lower of:
火焰喷射器5.火焰喷射器1.火焰喷射器10.1 火焰喷射器火焰喷射器火焰喷射器 The drawn down amount of the? subordinated loan; and
火焰喷射器5.火焰喷射器1.火焰喷射器10.2 火焰喷射器火焰喷射器火焰喷射器 Four times the net assets position of the registered person, calculated using the registered person’s latest audited financial statements.
火焰喷射器5.火焰喷射器1.11 火焰喷射器火焰喷射器 The variance treatment for the subordinated loan will automatically fall away if either:
火焰喷射器5.火焰喷射器1.火焰喷射器11.1 火焰喷射器火焰喷射器火焰喷射器 The registered person fails to comply with any of the requirements of the subordinated loan agreement, including the notification requirements; or
火焰喷射器5.火焰喷射器1.火焰喷射器11.2 火焰喷射器火焰喷射器火焰喷射器 The subordinated loan repayment date falls due within one year.
火焰喷射器5.火焰喷射器1.12 火焰喷射器火焰喷射器 In addition to being a signatory to the Subordinated Loan Agreement, the JFSC will place a condition on the registered person’s registration, utilising Article 10 of the FS(J)L, requiring that the registered person complies in full with the terms of the Subordinated Loan Agreement.
1 ? ”net assets” is defined as total assets less total liabilities.
2 ? With respect to the share capital requirements in 5.1.3 and 火焰喷射器5.1.4, if the registered person operates in Jersey as a branch of a legal entity registered outside Jersey then the share capital requirement applies to the legal entity.
3 ? The JFSC has published a guidance note on the ANLA calculation which is available from the policy statements and guidance notes section of the JFSC website.
4 ? The proforma Subordinated Loan Agreement and consent request checklist are available from the JFSC website.
5 ? For the purposes of 22.214.171.124, an approved lender is:
(a) A financial service business as defined by Article 2 of the FS(J)L;
(b) A financial service business regulated by a “relevant supervisory authority”, as defined by Article 1 of the FS(J)L;
(c) ? A person that is registered by the JFSC to carry on deposit-taking business under Article 9 of the Banking Business (Jersey) Law 1991;
(d) A principal person of the registered person; or
(e) A person that does not meet any of the above criteria but whom has been specifically approved by the JFSC.
火焰喷射器5.火焰喷射器2.1 火焰喷射器火焰喷射器 A registered person must have and maintain adequate insurance cover at all times, commensurate with its business activities. Such cover must include professional indemnity insurance (PII) extended to include fidelity guarantee (employee dishonesty or fraud) insurance and director's and officer's insurance.
火焰喷射器5.火焰喷射器2.2 火焰喷射器火焰喷射器 PII cover and extensions must include negligence and errors and omissions by a registered person and employee dishonesty and must, where possible, extend to all territories from which a registered person conducts business.
火焰喷射器5.火焰喷射器2.3 火焰喷射器火焰喷射器 A registered person must not enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty imposed by the JFSC.
火焰喷射器5.火焰喷射器2.4 火焰喷射器火焰喷射器 PII cover must be written on a “claims-made” basis including costs and expenses and, so far as lawful, must include:
火焰喷射器5.火焰喷射器2.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器 Legal defence costs;
火焰喷射器5.火焰喷射器2.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器 Loss or theft of documents (liability and costs of replacement, reinstatement, restoration or reconstruction of data);
火焰喷射器5.火焰喷射器2.火焰喷射器4.3 火焰喷射器火焰喷射器火焰喷射器 Self-employed or contract hire persons engaged in a registered person’s business; and
火焰喷射器5.火焰喷射器2.火焰喷射器4.4 火焰喷射器火焰喷射器火焰喷射器 Indemnity to current or former employees, partners and consultants.
火焰喷射器5.火焰喷射器2.5 火焰喷射器火焰喷射器 Subject to 5.2.6, the minimum indemnity limit for any one claim and in the aggregate must equal or exceed the greater of:
火焰喷射器5.火焰喷射器2.火焰喷射器5.1 火焰喷射器火焰喷射器火焰喷射器 Three times the amount of relevant fees and commissions;
火焰喷射器5.火焰喷射器2.火焰喷射器5.2 火焰喷射器火焰喷射器火焰喷射器 10% of controlled assets; or
火焰喷射器5.火焰喷射器2.火焰喷射器5.3 火焰喷射器火焰喷射器火焰喷射器 ?1,000,000 (one million pounds sterling).
火焰喷射器5.火焰喷射器2.6 火焰喷射器火焰喷射器 A registered person shall not be required by virtue of 5.2.5 to have aggregate insurance cover exceeding ?5,000,000 (five million pounds sterling).
火焰喷射器5.火焰喷射器2.7 火焰喷射器火焰喷射器 In the event that a registered person’s aggregate level of PII cover is depleted as a result of a claim on its policy, such that it is no longer sufficient to meet the requirements set out in 5.2.5, a registered person must obtain reinstated cover that meets the requirements set out under paragraph 5.2.5.
火焰喷射器5.火焰喷射器2.8 火焰喷射器火焰喷射器 Any excess (or deductible) per claim on the policy must not:
火焰喷射器5.火焰喷射器2.火焰喷射器8.1 火焰喷射器火焰喷射器火焰喷射器 Exceed ?5,000 (five thousand pounds sterling) or 3% of the annual relevant fees and commissions, whichever is greater; or
火焰喷射器5.火焰喷射器2.火焰喷射器8.2 火焰喷射器火焰喷射器火焰喷射器 Reduce the limit of indemnity payable under the policy such that it is insufficient to meet the minimum indemnity limit prescribed under 5.2.5.
火焰喷射器5.火焰喷射器2.9 火焰喷射器火焰喷射器 As soon as it becomes aware, a registered person must notify the JFSC in writing of any material limitations in its PII policy, including the basis on which the limitation has been applied, in respect of matters such as:
火焰喷射器5.火焰喷射器2.火焰喷射器9.1 火焰喷射器火焰喷射器火焰喷射器 An inability to obtain PII cover in line with the requirements of 5.2.3 or 5.2.5;
火焰喷射器5.火焰喷射器2.火焰喷射器9.2 火焰喷射器火焰喷射器火焰喷射器 Any territory from which a registered person conducts business or may reasonably be expected to conduct business;
火焰喷射器5.火焰喷射器2.火焰喷射器9.3 火焰喷射器火焰喷射器火焰喷射器 Any exclusion applied by way of endorsements;
火焰喷射器5.火焰喷射器2.火焰喷射器9.4 火焰喷射器火焰喷射器火焰喷射器 Any retroactive date applied to the PII policy;
火焰喷射器5.火焰喷射器2.火焰喷射器9.5 火焰喷射器火焰喷射器火焰喷射器 The cancellation of the PII policy;
火焰喷射器5.火焰喷射器2.火焰喷射器9.6 火焰喷射器火焰喷射器火焰喷射器 If a registered person becomes aware that it has conducted any activity that is not covered by the PII policy; and
火焰喷射器5.火焰喷射器2.火焰喷射器9.7 火焰喷射器火焰喷射器火焰喷射器 If a registered person’s aggregate level of PII cover is depleted as described at 5.2.7.
火焰喷射器5.火焰喷射器2.10 火焰喷射器火焰喷射器 ?Registered person that is ceasing to conduct investment business is required to arrange for appropriate “run off” PII cover in respect of claims arising from past acts or omissions. The level of such cover requires the JFSC’s consent as part of the cessation of business plan.
火焰喷射器5.火焰喷射器2.11 火焰喷射器火焰喷射器 A registered person must have adequate procedures in place to ensure compliance with all terms and conditions set out in its PII policy, particularly in relation to the timely notification of events by a registered person to its insurer, which may lead to a claim on the policy by a registered person.
火焰喷射器5.火焰喷射器2.12 火焰喷射器火焰喷射器 Where a registered person may be subject to an Eligible complaint as defined at Article 7 of the Financial Services Ombudsman (Jersey) Law 2014, in addition to the requirements at 5.2.3, a registered person must ensure that its PII cover is adequate in the event that a Determination is made against a registered person by the Channel Islands Financial Ombudsman.
(a) With respect to the material limitations notification required by paragraph 火焰喷射器5.2.9, paragraph 3.1 of the guidance note provides a list of exclusions and limitations that the JFSC considers standard and therefore fall outside of the notification requirement; and
(b) Paragraph 火焰喷射器6.火焰喷射器3.2 火焰喷射器火焰喷射器of the guidance note highlights the information to be submitted to the JFSC when requesting a variance to enter into a self-insurance arrangement.
1 ? There is a need for candour and co-operation in a registered person’s relationship with the JFSC. Article 28(3) of the FS(J)L provides that a registered person, or formerly registered person, shall be guilty of an offence if he or she fails to provide the JFSC with any information in his or her possession, knowing or having reasonable cause to believe that or being reckless as to whether –
(a) The information is relevant to the exercise by the JFSC of its functions under the FS(J)L in relation to the registered person, or formerly registered person; and
(b) The withholding of the information is likely to result in the JFSC being misled as to any matter which is relevant to and of material significance for the exercise of those functions in relation to the registered person or formerly registered person.
2 ? The scope of Principle 6 is extended to the provision of information and the notification of events concerning non-regulated activities and other members of the corporate group, to the extent that such information or events might reasonably be expected to have a material impact on the registered person in Jersey.
3 ? Notification to the Companies Registry does not constitute notification to the JFSC for the purposes of this principle.
4 ? The JFSC considers that the obligations of a registered person under this Principle include the timely provision of data required in connection with a registered person’s regulatory fees and the timely payment of fees due.
1 ? With respect to 6.1, “as soon as it becomes aware” applies from the point at which the registered person knows, or has reasonable grounds for believing, that any of the matters referred to have occurred or may be about to occur, even where it is outside the control of the registered person. The JFSC considers the following indicative that notification is necessary. Any matter which:
(a) Is material to the JFSC’s ability to undertake its function of supervision of financial services provided in or from within Jersey;
(b) The registered person considers is material to, or may make it impractical for it to comply with, one or more of:
(i) The provisions of the FS(J)L or any Regulation or Order made under it;
(ii) ? Compliance with a registration condition;
(iii) ? Compliance with a direction issued by the JFSC;
(iv) ? The Code;
(v) ? The fitness and propriety of its principal persons, key persons or investment employees, especially where the registered person has imposed a formal disciplinary measure or sanction.
火焰喷射器6.火焰喷射器6.1 火焰喷射器火焰喷射器 A change in the name of the registered person;
火焰喷射器6.火焰喷射器6.2 火焰喷射器火焰喷射器 The adoption of, or change in, any business name under which the registered person carries on investment business;
火焰喷射器6.火焰喷射器6.3 火焰喷射器火焰喷射器 A change to:
火焰喷射器6.火焰喷射器6.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 The address of the principal office of the registered person,
火焰喷射器6.火焰喷射器6.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 The address of the registered office of the registered person, and
火焰喷射器6.火焰喷射器6.火焰喷射器3.3 火焰喷射器火焰喷射器火焰喷射器 Any address which is treated as the proper address of the registered person by Article 40(6) of the FS(J)L, and
火焰喷射器6.火焰喷射器6.4 火焰喷射器火焰喷射器 The summary winding up or voluntary dissolution of a registered person.
火焰喷射器6.火焰喷射器7.1 火焰喷射器火焰喷射器 The decision to voluntarily cease a business activity, whether temporarily or permanently, where this decision involves the revocation of a registration in accordance with Article 9(4)(a) of the FS(J)L, in this case a registered person must complete a Cessation of Business Plan, as prescribed by the JFSC, which must include details of arrangements for the protection of clients, creditors and other stakeholders. Before implementing a Cessation of Business Plan a registered person must obtain written confirmation from the JFSC that it has no objection to it;
火焰喷射器6.火焰喷射器7.2 火焰喷射器火焰喷射器 The presentation of any application to the court for désastre;
火焰喷射器6.火焰喷射器7.3 火焰喷射器火焰喷射器 The summoning of any meeting to consider a resolution to wind up the registered person or the winding up of the registered person or of a company which is a subsidiary or holding company of the registered person;
火焰喷射器6.火焰喷射器7.4 火焰喷射器火焰喷射器 The application by any person for the commencement of any insolvency proceedings, appointment of any receiver, administrator or provisional liquidator under the law of any country, in relation to the registered person;
火焰喷射器6.火焰喷射器7.5 火焰喷射器火焰喷射器 The making or any proposals for the making of a composition or arrangement with creditors of the registered person;
火焰喷射器6.火焰喷射器7.6 火焰喷射器火焰喷射器 The imposition of disciplinary measures or disciplinary sanctions on the registered person or any of their principal persons or key persons by any relevant supervisory authority, professional body or any investment exchange or clearing house;
火焰喷射器6.火焰喷射器7.7 火焰喷射器火焰喷射器 The conviction of the registered person, or any of its principal persons, key persons or investment employees, for any offence:
火焰喷射器6.火焰喷射器7.火焰喷射器7.1 火焰喷射器火焰喷射器火焰喷射器 Under legislation of any jurisdiction relating to the conduct of financial services business (includes legislation relating to banking, building societies, collective investment funds, companies, credit unions, consumer credit, friendly societies, insolvency, insurance and industrial and provident societies and trust companies), or
火焰喷射器6.火焰喷射器7.火焰喷射器7.2 火焰喷射器火焰喷射器火焰喷射器 Involving fraud or dishonesty
火焰喷射器6.火焰喷射器7.8 火焰喷射器火焰喷射器 The imposition of any penalties for deliberate tax evasion on the registered person or any of its principal persons, key persons or investment employees;
火焰喷射器6.火焰喷射器7.9 火焰喷射器火焰喷射器 The re-registration of a registered person incorporated with unlimited liability as a limited liability company;
火焰喷射器6.火焰喷射器7.10 火焰喷射器火焰喷射器 A general partner in a registered person becoming a limited partner;
火焰喷射器6.火焰喷射器7.11 火焰喷射器火焰喷射器 The granting, withdrawal or refusal of any application for authorisation to carry on regulated financial services business in any country or territory outside of Jersey, or the revocation of such authorisation;
火焰喷射器6.火焰喷射器7.12 火焰喷射器火焰喷射器 The granting, withdrawal or refusal of an application for membership of any investment exchange or clearing house, or the revocation of such membership;
火焰喷射器6.火焰喷射器7.13 火焰喷射器火焰喷射器 The withdrawal or refusal of an application for membership of any professional body by the registered person, a principal person, key person or investment employee of the registered person, in any jurisdiction, or the revocation of such a membership;
火焰喷射器6.火焰喷射器7.14 火焰喷射器火焰喷射器 The appointment of inspectors (howsoever named) by a statutory or other regulatory authority to investigate the affairs of the registered person;
火焰喷射器6.火焰喷射器7.15 火焰喷射器火焰喷射器 Any litigation following the institution of proceedings before a Court of Law:
火焰喷射器6.火焰喷射器7.火焰喷射器15.1 火焰喷射器火焰喷射器火焰喷射器 Instigated by the registered person or any subsidiary of the registered person,
火焰喷射器6.火焰喷射器7.火焰喷射器15.2 火焰喷射器火焰喷射器火焰喷射器 Instigated against the registered person,? or
火焰喷射器6.火焰喷射器7.火焰喷射器15.3 火焰喷射器火焰喷射器火焰喷射器 Where the registered person is a cited party;
火焰喷射器6.火焰喷射器7.16 火焰喷射器火焰喷射器 Any decision relating to business activities likely to have a material effect on the registered person or its profitability (notifications should specify, as applicable, the name of any company and its principal business), such decisions include, but are not limited to:
火焰喷射器6.火焰喷射器7.火焰喷射器16.1 火焰喷射器火焰喷射器火焰喷射器 The introduction of a new business activity,
火焰喷射器6.火焰喷射器7.火焰喷射器16.2 火焰喷射器火焰喷射器火焰喷射器 Closure to new business,
火焰喷射器6.火焰喷射器7.火焰喷射器16.3 火焰喷射器火焰喷射器火焰喷射器 The formation, acquisition, disposal or dissolution of a subsidiary, associated group company or branch office, wherever situated, and
火焰喷射器6.火焰喷射器7.火焰喷射器16.4 火焰喷射器火焰喷射器火焰喷射器 Changes to investments held, where a registered person acquires or disposes for its own benefit of a holding of more than half in nominal value of the equity share capital of a company, specifying the name of the company and its principal business;
火焰喷射器6.火焰喷射器7.17 火焰喷射器火焰喷射器 Any material changes, other than those specifically referred to in the Code, in the information previously submitted under the following headings, any:
火焰喷射器6.火焰喷射器7.火焰喷射器17.1 火焰喷射器火焰喷射器火焰喷射器 Overseas operations through which the registered person carries on investment business, irrespective of the vehicle utilised to deliver the business (branch subsidiary, representative office or otherwise); and
火焰喷射器6.火焰喷射器7.火焰喷射器17.2 火焰喷射器火焰喷射器火焰喷射器 Jurisdictions outside Jersey in which the registered person carries on investment business, indicating whether this is done through a branch office, a subsidiary or otherwise.
火焰喷射器6.火焰喷射器7.18 火焰喷射器火焰喷射器 A decision by the registered person’s auditor to qualify its audit report or to raise an emphasis of matter therein;
火焰喷射器6.火焰喷射器7.19 火焰喷射器火焰喷射器 Any material deficiencies in the effectiveness of controls over client money identified during an independent review as required by paragraph 3.2.2.
1 ? With respect to 6.7, the JFSC considers:
(a) “a reasonable time” to be five business days; and
(b) That “ becoming aware” applies from the point at which the registered person knows, or has reasonable grounds for believing, that any of the matters stated has occurred or may be about to occur, even where it is outside of the control of the registered person.
2 ? With respect to 6.7.1, a full outline of the matters that must be addressed within the COBP is available from the JFSC upon request.
火焰喷射器Notifications arising in other parts of the Code火焰喷射器
火焰喷射器6.火焰喷射器8.1 火焰喷射器火焰喷射器 126.96.36.199 sets a requirement to contact the JFSC as soon as a registered person becomes aware that the regulatory i of control requirements will not be maintained;
火焰喷射器6.火焰喷射器8.2 火焰喷射器火焰喷射器 3.5.6 sets a notification requirement in respect of a compliance officer being temporarily unable to fulfil his/her responsibilities;
火焰喷射器6.火焰喷射器8.3 火焰喷射器火焰喷射器 3.6.2 sets notification requirements in respect of complaints;
火焰喷射器6.火焰喷射器8.4 火焰喷射器火焰喷射器 5.1.2 sets a notification requirement on a registered person that is a branch of a legal entity registered outside Jersey and the registered person is not required to complete the ANLA requirements of the Code;
火焰喷射器6.火焰喷射器8.5 火焰喷射器火焰喷射器 5.1.7 sets notification requirements in respect of ANLA requirements; and
火焰喷射器6.火焰喷射器8.6 火焰喷射器火焰喷射器 5.2.9 sets notification requirements in respect of PII.
火焰喷射器Notifying or providing information via the 火焰喷射器火焰喷射器JFSC’s火焰喷射器火焰喷射器 online portal火焰喷射器
火焰喷射器7.火焰喷射器2.1 火焰喷射器火焰喷射器 A statement, promise or forecast unless the registered person, at the time the advertisement is made has reasonable grounds for believing it is not misleading, false or deceptive;
火焰喷射器7.火焰喷射器2.2 火焰喷射器火焰喷射器 A statement of opinion held by any person unless the registered person, at the time the advertisement is made, has reasonable grounds for believing it to be the honestly held opinion of that person at that time;
火焰喷射器7.火焰喷射器2.3 火焰喷射器火焰喷射器 A statement of fact unless the registered person, at the time the advertisement is made, has reasonable grounds for believing the statement will continue to be true for so long as the advertisement continues to be made in current publications;
火焰喷射器7.火焰喷射器2.4 火焰喷射器火焰喷射器 A statement about the scale of activities of, or any of the activities of, or the resources of or available to, a registered person or that registered person’s group unless the registered person, at the time the advertisement is made, has reasonable grounds for believing the statement is not misleading, false or deceptive;
火焰喷射器7.火焰喷射器2.5 火焰喷射器火焰喷射器 A statement relating to taxation benefits unless it is clearly illustrated by example to show what it means in practice and to whom such benefits apply;
火焰喷射器7.火焰喷射器2.6 火焰喷射器火焰喷射器 A statement relating to client confidentiality unless it is qualified to show the limits of any confidentiality assurance made;
火焰喷射器7.火焰喷射器2.7 火焰喷射器火焰喷射器 A statement of comparison with other entities carrying on investment business unless the basis of comparison is clearly stated and the comparison is fair; or
火焰喷射器7.火焰喷射器2.8 火焰喷射器火焰喷射器 A statement implying that the service is only available for a limited period or in limited form, if such is not the case.
火焰喷射器7.火焰喷射器3.1 火焰喷射器火焰喷射器 A statement of fact which the registered person does not at the time the advertisement is made have reasonable grounds, supported by documentary evidence, for believing to be true; or
火焰喷射器7.火焰喷射器3.2 火焰喷射器火焰喷射器 A statement of opinion held by any person which the registered person does not at the time the advertisement is made, have reasonable grounds, supported by documentary evidence, for believing to be the honestly held opinion of that person at that time.
火焰喷射器7.火焰喷射器4.1 火焰喷射器火焰喷射器 Be designed so as to be likely to be misunderstood;
火焰喷射器7.火焰喷射器4.2 火焰喷射器火焰喷射器 Be designed so as to disguise the significance of any warning statement or information, which is required to be included under the Code; or
火焰喷射器7.火焰喷射器4.3 火焰喷射器火焰喷射器 Signify in any way that the advertisement is approved by the JFSC.
火焰喷射器7.火焰喷射器5.1 火焰喷射器火焰喷射器 Where the person is an employee or associate of the registered person, that fact is disclosed in the advertisement;
火焰喷射器7.火焰喷射器5.2 火焰喷射器火焰喷射器 The quotation is included with that person’s written consent;
火焰喷射器7.火焰喷射器5.3 火焰喷射器火焰喷射器 The statement is relevant to the investment or service which is the subject of the advertisement;
火焰喷射器7.火焰喷射器5.4 火焰喷射器火焰喷射器 Where the whole of the statement is not quoted, what is quoted represents fairly the message contained in the whole of the statement; and
火焰喷射器7.火焰喷射器5.5 火焰喷射器火焰喷射器 The statement has not become inaccurate or misleading subsequent to it being made.
火焰喷射器7.火焰喷射器6.1 火焰喷射器火焰喷射器 Those which are specified give a fair indication of the nature of the investment or service and the risks involved and the advertisement contains the terms and conditions; or
火焰喷射器7.火焰喷射器6.2 火焰喷射器火焰喷射器 Where no mention of terms and conditions is made, the advertisement must contain information as to how all the terms and conditions may be obtained.
火焰喷射器7.火焰喷射器9.1 火焰喷射器火焰喷射器 The advertisement shall state clearly the nature of the guarantee, protection or assurance, the name of the guarantor, to what the guarantee relates and whether there are any matters which may affect the investor’s ability to benefit from it.
火焰喷射器7.火焰喷射器9.2 火焰喷射器火焰喷射器 The word “guarantee” is not permitted to be used in an advertisement unless the advertisement clearly demonstrates that the guarantor is independent of the promoter or the registered person can evidence to the JFSC, should it so require, the financial basis of that guarantee. In using the word “guarantee” a registered person should be mindful that any person underwriting risks associated with an investment might give rise to a requirement for that person to register under the relevant insurance laws of a particular jurisdiction.
火焰喷射器7.火焰喷射器9.3 火焰喷射器火焰喷射器 Where the advertisement otherwise meets the guidelines for use of the word “guaranteed”, ”assured”, “protected” or similar, the registered person must:
火焰喷射器7.火焰喷射器9.火焰喷射器3.1 火焰喷射器火焰喷射器火焰喷射器 Consider whether the name of the product fairly represents the nature of the guarantee/assurance/protection/similar which is being offered; and
火焰喷射器7.火焰喷射器9.火焰喷射器3.2 火焰喷射器火焰喷射器火焰喷射器 Ensure the extent to which the guarantee applies is clearly stated. For example, if advertising a fund where the guarantee extends to certain sub-funds but not others, the different levels of guarantee must be explicit.
火焰喷射器7.火焰喷射器9.4 火焰喷射器火焰喷射器 If the advertisement states that the investment is “capital guaranteed”, the registered person must ensure that this is truly the case in respect of 100% capital return.
1 ? Article 1 of the FS(J)L defines a “financial service advertisement” as an advertisement containing – (a) an invitation to transact financial service business; or (b) information which is intended or might reasonably be presumed to be intended to lead directly or indirectly to the transaction of financial service business, and includes any means of bringing such an invitation or such information to the notice of any person, and a reference to an advertisement shall be construed accordingly. It is the JFSC’s view that this definition covers written, broadcast and oral advertisements.
2 ? For the purpose of Principle 7, "written" and "broadcast" have the same meaning as provided by Article 1 of the Financial Services (Advertising) (Jersey) Order 2008.
3 ? Under Article 39L of the FS(J)L, it is an offence for any person to knowingly or recklessly make a misleading, false or deceptive statement, promise or forecast for the purpose of inducing another person to enter into, or to refrain from entering into, an agreement for the provision of financial service business.
4 ? The requirements in Principle 7 are not intended to capture advertising or promotional literature forwarded by the registered person to its clients on behalf of third parties.
5 ? Advertisements that meet the exempt criteria set out in Article 2(2) of the Financial Services (Advertising) (Jersey) Order 2008 are also exempt from the requirements of Principle 7.
6 ? For the avoidance of doubt, the FS(J)L does not require advertisements to be approved by the JFSC and accordingly the JFSC would not normally contribute to any review or vetting process. In serious cases, however, the JFSC will consider exercising its powers of direction to have an advertisement amended or withdrawn. Nevertheless, the JFSC is especially interested in advertisements that meet the criteria set out in 火焰喷射器7.13 火焰喷射器of the Code and would appreciate sight of any such advertisements before issue.
7 ? It may not be possible or practicable to list within an advertisement all areas of risk that might apply to a particular product or service. Similarly, it may not be possible or practicable to specify all of the relevant terms and conditions. The necessary extent to which the risk warnings and the terms and conditions are specified in an advertisement will be dependent upon the nature of the products or services being advertised.
火焰喷射器Financial Resource Requirements火焰喷射器
Table 1 (the Resource Requirement Table) sets out the methodology for calculating the Adjusted Net Liquid Assets and Total Requirement. Tables 2 – 6 set out the applicable calculations and the applicable definitions can be found in the JFSC publication: Definitions and Guidance on the Adjusted Net Liquid Assets (火焰喷射器ANLA火焰喷射器) Calculation. In Tables 2 – 6 the column headed “GN ref” highlights the relevant item in section 5 of the guidance note.
In line with 5.1.5, the calculation must be performed with a frequency that reflects the circumstances of the business and the risks that face it. Unless the JFSC consents otherwise the following must apply:
? For entities with any Position, Counterparty or Foreign Currency Risk Requirements, the calculation must be undertaken every business day.
? All other registered persons must complete the calculation on at least a quarterly basis. In addition, a registered person must prepare the calculation more frequently, if either:
? ? Its ANLA falls below 130% of its Expenditure Requirement; or
? ? An event occurs which has a material adverse effect on the registered person’s financial resources.
The JFSC may consider variances to the required frequency of ANLA calculations if a registered person can demonstrate either enhanced capitalisation or if it regularly exceeds the requirement to a sufficient extent to suggest that the risk of breach is minimal. Such variances will be conditional on these circumstances being maintained.
The JFSC may impose enhanced requirements on a registered person, based on its risk based supervision.
Adjusted Total Assets
火焰喷射器From Table 2火焰喷射器
Adjusted Total Liabilities
火焰喷射器From Table 3火焰喷射器
火焰喷射器Adjusted Net Liquid Assets (ANLA)火焰喷射器
Expenditure Requirement (ER)
火焰喷射器From Table 4火焰喷射器
Position Risk Requirement (PRR)
火焰喷射器From Table 5火焰喷射器
Counterparty Risk Requirement (CRR)
火焰喷射器From Table 6火焰喷射器
Foreign Currency Risk Requirement (FCRR)
GN ref 46
火焰喷射器Total Requirement (TR):火焰喷射器
火焰喷射器Ratio of ANLA to TR火焰喷射器
1 ? The ratio of ANLA to TR must be maintained at a level of more than 110% (either by increasing share capital or introducing subordinated loans).
2 ? Notify the JFSC 火焰喷射器immediately火焰喷射器 if the Ratio of ANLA to TR falls below 130%, and make a further notification if it falls below 110%.
火焰喷射器Total Fixed Assets火焰喷射器
Work in progress
Debtors and prepayments
Amounts due from related parties
Cash at bank and in hand
火焰喷射器Total Current Assets火焰喷射器
火焰喷射器Illiquid Asset Adjustments:火焰喷射器
Debtors > 90 days
Work in progress > 90 days
Prepayments > 90 days
Any other relevant items[ii]
火焰喷射器Total Illiquid Assets Adjustment火焰喷射器
火焰喷射器Adjusted Total Assets – take to Table 1火焰喷射器
Trade creditors and accruals
Bank loans < 1 year
Lease obligations < 1 year
Taxation obligations < 1 year
Amounts due to related parties <1 year
Subordinated loan < 1 year to run
Other < 1 year
火焰喷射器Total Current Liabilities火焰喷射器
火焰喷射器Long Term Liabilities:火焰喷射器
Bank loans > 1 year
Lease obligations > 1 year
Taxation obligations > 1 year
Amounts due to related parties > 1 year
Subordinated loan > 1 year
Other >1 year
火焰喷射器Total Long Term Liabilities火焰喷射器
火焰喷射器Adjustments to Total Liabilities:火焰喷射器
Additional Excess on PII
Guarantees and/or charges over assets
Provision for Clawback
Non-refundable deferred income
Allowable subordinated loan > 1 year
Allowable undrawn credit facility
Any other relevant items
火焰喷射器Total Adjustments to Total Liabilities火焰喷射器
火焰喷射器Adjusted Total Liabilities – take to Table 1火焰喷射器
火焰喷射器Calculation of Expenditure Requirement (ER):火焰喷射器
火焰喷射器Total actual expenditure 火焰喷射器
火焰喷射器Adjustments to total actual expenditure:火焰喷射器
Discretionary bonuses/profit share
Bad debt expense
火焰喷射器Total adjustments to total actual expenditure火焰喷射器
火焰喷射器Adjusted total actual expenditure火焰喷射器
火焰喷射器Budget expenditure for the current year (net of forecast discretionary bonuses and bad debt expenses)火焰喷射器
Take the higher:
火焰喷射器Y or Z火焰喷射器
火焰喷射器Relevant Annual Expenditure (RAE)火焰喷射器
火焰喷射器Expenditure Requirement (ER) – take to Table 1火焰喷射器
火焰喷射器RAE x 25%火焰喷射器
1 ? Registered persons must exercise care to ensure that any items deducted from the Expenditure Requirement (under Adjustments to total actual expenditure) were originally included in either the “Total actual Expenditure” or “Budgeted Expenditure” figure.
Registered persons which maintain positions in investments (either long or short) are exposed to the risk that the price of such investments may move against them in the future. A registered person must calculate each of its position risk requirements in accordance with this table, and take the total position risk requirement, which is the sum of the requirements for each category, for entry in Table?1.
火焰喷射器Calculation of Position Risk Requirement (PRR):火焰喷射器
UK Government or local authority
Issued or accepted by an approved bank
Other marketable investments
火焰喷射器Total Debt PRR:火焰喷射器
火焰喷射器B. Equities: 火焰喷射器
Listed on a regulated investment exchange
Traded on a regulated investment exchange
火焰喷射器Total Equity PRR:火焰喷射器
火焰喷射器C. Futures, Options and Contracts for Difference:火焰喷射器
Exchange traded futures
Contracts for differences
火焰喷射器Total Futures, Options and Contracts for Difference PRR:火焰喷射器
火焰喷射器D. Other Investments:火焰喷射器
Unit linked bonds and units in a regulated collective investment scheme[iii] unless covered below
Units in higher volatility[iv] and property funds
With profit life policies
Any other investments[v]
火焰喷射器Total Other Investments PRR:火焰喷射器
火焰喷射器Position Risk Requirement – take to Table 1火焰喷射器
A registered person must calculate the net CRR under each of the category headings below. Categories in which there is no entry or the net CRR is negative are to be treated as nil. The overall CRR is the aggregate of all such sub-totals. The JFSC may consent to these calculations being based on an internationally recognised standard.
火焰喷射器Calculation of Counterparty Risk Requirement (CRR):火焰喷射器
Cash against document transactions:
Options purchased for a counterparty:
Amounts owed in respect of exchange traded margined transactions:
Concentrated risk from one counterparty:
Investments subject to repurchase, reverse repurchase, stock borrowing or stock lending transactions:
Over the Counter Derivatives:
Other receivables and accrued income:
火焰喷射器Counterparty Risk Requirement – take to Table 1火焰喷射器
火焰喷射器Application of 火焰喷射器火焰喷射器th火焰喷射器火焰喷射器e火焰喷射器 火焰喷射器Code to persons registered to conduct Class E investment火焰喷射器 火焰喷射器business火焰喷射器
火焰喷射器Definition火焰喷射器 - Class E investment business is defined under Schedule 1 of the Financial Services (Financial Service Business) (Jersey) Order 2009 as follows:
“Investment business carried on only with respect to funds which would be funds within the meaning of the Collective Investment Funds (Jersey) Law?1988 but for the fact that they do not, and do not intend to, acquire capital by means of an offer to the public of units for subscription, sale or exchange, as described in that Law.”
火焰喷射器Variance from the Code火焰喷射器 – Persons registered to conduct only Class E of investment business are afforded variances from certain provisions of the Code. Where a business is registered to conduct Class E as well as other classes of investment business, the full Code will apply to the whole of that business.
火焰喷射器Application of the Code火焰喷射器 – Persons registered to conduct only Class E of investment business must comply with the following high level principles:
? ? Its financial affairs;
? ? Business transactions undertaken;
? ? Transactions effected for clients;
? ? Its internal organisation, including the apportionment of responsibilities among its employees;
? ? Directors’ and staff own account dealings;
? ? Risk management systems; and
? ? Board or management minutes.
? ? Records relating to significant corporate governance matters, such as management meeting minutes and risk assessment matters – ten years from the date of the record;
? ? Any other business records relating to requirements established by the Code – ten years from the date of the record;
? ? Contractual documentation such as client account opening paperwork, mandates, agreements and Fact Finds – five years from the closure of the account or from the end of a series of transactions; and
? ? Any other client records relating to requirements established by the Code – five years from the date of the transaction.
火焰喷射器Table of consents火焰喷射器
The following table summarises those variances which are specifically referred to in the Code as being available, on application in writing, from the JFSC.
Control and Risk Management
On submission of a written request by the registered person, the JFSC will consider, on a case-by-case basis, the acceptability or otherwise of any other qualifications held by an investment employee. Such a request must:
? Include a written explanation as to why the registered person considers the alternative qualification to be appropriate for that employee; and
? Must be accompanied by a copy of the syllabus studied or equivalent where practical.
The JFSC may, on written application by the registered person, grant exemptions from the requirement to hold qualifications referred to in 3.火焰喷射器3.火焰喷射器1.火焰喷射器4.1 火焰喷射器火焰喷射器火焰喷射器and 火焰喷射器3.火焰喷射器3.2 火焰喷射器火焰喷射器of the Code. In doing so, the JFSC will pay regard to any previous exemption granted in respect of the investment employee on whose behalf the exemption is being sought, as well as the nature of the role being performed and the registered person’s systems and controls.
In exceptional circumstances the JFSC may, on written application from a registered person, grant an exemption from the requirement under 火焰喷射器3.火焰喷射器5.火焰喷射器4.2 火焰喷射器火焰喷射器火焰喷射器of the Code where, for example, the registered person operates in Jersey as a branch and therefore relies upon a Compliance department based outside of Jersey. In considering such a request, the JFSC will pay particular regard to the extent to which the Jersey operation is subject to compliance monitoring and who has been nominated as the Jersey based compliance contact.
On submission of a written request by the registered person, the JFSC will consider granting consent to adjust the total liabilities figure by excluding a long term subordinated loan as a liability (Table 3 of the First Schedule). Any request must be accompanied by a signed consent request checklist and such consent is only likely to be granted where:
? The subordinated loan is drawn up in accordance with the JFSC’s proforma Subordinated Loan Agreement; and
? The subordinated loan is made by an approved lender.
A Registered person that is ceasing to conduct investment business is required to arrange for appropriate “run off” PII cover in respect of claims arising from past acts or omissions. The level of such cover requires the JFSC’s consent as part of the cessation of business plan.
The JFSC may consider variances to the required frequency of ANLA calculations if a registered person can demonstrate either enhanced capitalisation or if it regularly exceeds the requirements to a sufficient extent that the risk of a breach is minimal. Such variances will be conditional on these circumstances being maintained.
[i] Formerly the sensitive activities policy.
[ii] The registered person must exercise appropriate judgement to include any items here that may not be covered by the defined categories of illiquid asset adjustment but would be considered to be illiquid.
[iii] Refer to the FCA definition of a collective investment scheme.
火焰喷射器[iv] Higher volatility funds would include geared futures and options fund or warrant funds, assuming they are regulated schemes. Where they are not regulated the 100% of realisable value must be taken as the CRR.
[v] Any items subject to Position Risk that are not covered under the defined categories within parts A – D of this table.