Further to our earlier updates on the Review of Financial Advice (RFA) (the JFSC’s version of the UK’s Retail Distribution Review), the JFSC has now published a paper setting out its final position. That paper confirms that only persons registered to undertake Class C and D investment business will be affected by the RFA. The RFA will distinguish between Professional Clients and non-Professional Clients (or retail clients). The principal changes, which will apply from 1 January 2014, are:

• Advisers are required to hold an appropriate qualification at QCF level 4 or above in order to be able to give financial advice in or from within Jersey to retail clients. Advisers to professional clients must be “appropriately qualified”.
• Remuneration by way of commission will not be permitted in respect of advice given to retail clients resident in Jersey.

As fund service business providers are exempt from the requirement to register for investment business, we do not anticipate that the introduction of the RFA will have a significant impact on Jersey’s funds industry.