Please note the JFSC “UPDATE-CHANGE” to its Sound Business Practice Policy [2 August 2018], obviously the list of activities should be on every administrators mind when thinking about risk and this may be a good time to remind them.

INTRO

The JFSC Sound Business Practice Policy is designed to highlight business that has the potential to pose reputational risks to Jersey.

The JFSC Sound Business Practice Policy applies to:

1.  applications made to the JFSC in respect of consent under the following Articles of COBO on an initial and on-going basis
2.  applications made to the JFSC for approval for the transfer of a Reserved Company AND
3.  the Codes of Practice require that due regard is to be had by registered persons to the principles of this sound business practice policy document, issued by the JFSC.

a.   This requirement, on the registered person (Valla), applies irrespective of the incorporation/registration jurisdiction of the entity to                which the registered person is providing services.

THE CHANGE

Table 2 has been amended as follows:-

• The JFSC has clarified that any sale or facilitation of sale of citizenship / citizenship by investment (which includes the administration associated with citizenship and/or arranging for citizenship), is a sensitive activity falling within table 2 of the Sound Business Practice Policy.

The revised Sound Business Practice Policy is available here. http://www.jerseyfsc.org/media/2111/20180802-ps-sound-business-practice-policy.pdf

THE DETAIL

Attached as Appendices to this Policy are two tables. The tables set out those activities which, as a matter of policy, the JFSC has determined potentially pose reputational risks to Jersey.

• Table 1 sets out those activities that are subject to oversight by the JFSC for one or more of supervision of financial soundness, conduct of business and compliance with requirements relating to anti-money laundering and countering the financing of terrorism, and as a result fall within the scope of this Policy.
• Table 2 sets out those activities not within the regulatory oversight of the JFSC but are considered to likely pose a potential reputational risk to Jersey.
•  For the avoidance of doubt, the tables apply:

   a. to e-commerce related activities; and

   b. whether the activity

   -is to be carried out in Jersey or elsewhere by a Jersey incorporated/registered person, or

   -by a person that is administered by a Jersey registered person.