Control of Borrowing (Amendment No. 14) (Jersey) Order 201- and
Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201- (collectively “the draft Orders”)
1. THE ISSUE AND RECOMMENDATION
1.1. The draft Orders make consequential amendments to regulatory Orders following the coming into force of the Incorporated Limited Partnerships (Jersey) Law 2011 (“the ILP Law”) and the Separate Limited Partnerships (Jersey) Law 2011 (“the SLP Law”).
1.2. There are no financial or manpower implications for the States of Jersey.
1.3. The Jersey Financial Services Commission has recommended that the Minister makes the drafts Orders.
1.4. It is recommended that the Minister makes these Orders.
2. BACKGROUND
2.1. The ILP Law and the SLP Law introduced two new types of limited partnership, the ILP and the SLP, respectively.
COBO Order
2.2. Consequential amendments are needed to the Control of Borrowing (Jersey) Order 1958 (“the COBO Order”) and the Financial Services (Trust Company Business (Exemptions No. 3)) (Jersey) Order 2001 (“the TCB Order”).
2.3. Article 10 of the COBO Order prohibits the circulation within Jersey of a prospectus in respect of a limited partnership, unless the Jersey Financial Services Commission consents to its circulation.
2.4. The prohibition does not apply to a prospectus in respect of a limited partnership formed under the Limited Partnerships (Jersey) Law 1994.
2.5. ILPs (formed under the Incorporated Limited Partnerships (Jersey) Law 2011) and SLPs (formed under the Separate Limited Partnerships (Jersey) Law 2011) are comparable to limited partnerships formed under the Limited Partnerships (Jersey) Law 1994. It is therefore considered that they too should benefit from this exemption.
2.6. The effect of the draft Control of Borrowing (Amendment No. 14) (Jersey) Order 201- is that the exemption from the prohibition under Article 10 of the COBO Order will be extended to apply to ILPs and SLPs as well as limited partnerships formed under the Limited Partnerships (Jersey) Law 1994.
TCB Order
2.7. Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201- will amend the TCB Order, which was brought into force on 2 February 2001 and provides for limited exemptions from the Financial Services (Jersey) Law 1998 in favour of private protector companies, general partners and agents for the sale of trading companies, partnerships and investment company subsidiaries and an unlimited exemption in favour of agents for the sale of trading companies and partnerships locally trading.
2.8. The amended Order will apply in respect of general partners of SLPs and general partners of ILPs, as well as those of limited partnerships.
3. RECOMMENDATION
3.1. It is recommended that the Minister makes these Orders.
Director, Finance Industry Development
22 September 2011