The following extract is published in the Jersey annual Law and Accountancy Review. This publication taps into the expertise of specialists in both sectors to look at recent developments and to examine the continuing relationship between finance and the legal and accounting firms that support its increasingly complex activities.

http://www.thisisjersey.com/jersey-evening-post/supplements/law-and-accountancy-review/

As the Jersey Financial Services Commission (JFSC) supervisory work broadens, (lawyers and accountants are now subject to their supervision for AML) all regulated firms need to manage their expectations to avoid sanction. The JFSC has shown it takes its responsibilities seriously and wishes to ensure local organisations continue to tighten up on compliance controls. In light of this there is ever more reason for those organisations to take pro-active steps themselves before problems are identified. One only has to look across the water to the regulated community in the UK to see the benefits of this approach. For example the Financial Services Authority (FSA) are welcoming and accepting in-house “own” reports for submission. These in-house own reports are produced following the identification of a problem and the anticipation of some form of regulatory action on disclosure. In fact, provided such reports are properly prepared and thorough they serve a good purpose: ‘to tell before it’s found out’ and may have an effect on what action should be taken against such firms for any breaches identified.

Analysing this practice, it must be right that if a firm discovers it has regulatory issues, takes positive steps to address them and then goes further still and informs the FSA by providing a full report that firm will be seen as responsible. It demonstrates knowledge of issues and openness, and an intention to comply with regulations. Rather than wait for the regulator to come knocking at the door, the financial institution goes to the regulator…….

Want to read more of this intresting article?……click on the following link and go to page 16&17 @

http://www.thisisjersey.com/jersey-evening-post/supplements/law-and-accountancy-review/