Financial Services (Amendment No. 4) (Jersey) Law 200-.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (21/09/2007) regarding: Financial Services (Amendment No. 4) (Jersey) Law 200-.

Decision Reference: MD-E-2007-0183
Decision Summary Title:	Financial Services (Amendment No. 4) (Jersey) Law 200-		Date of Decision Summary:	20 September 2007
Decision Summary Author:	James Mews, Finance Industry Development Executive		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Financial Services (Amendment No. 4) (Jersey) Law 200-		Date of Written Report:	20 September 2007
Written Report Author:	James Mews, Finance Industry Development Executive		Written Report: Public or Exempt?	Public
Subject: Approval of the Financial Services (Amendment No. 4) (Jersey) Law 200- (the “Amendment”)
Decision(s): The Minister approved the Amendment, sign the Statement of Compatibility with the ECHR, approved the Report to be included in the Amendment, and requested the Officer to take such steps as were necessary to lodge the Amendment for debate by the States on 6 November 2007.
Reason(s) for Decision: The changes proposed are to introduce standard regulatory provisions: To implement international standards in the regulation of insurance business in Jersey – in preparation for the IMF assessment in 2008. To improve compatibility with the European Convention on Human Rights To enhance the ability of the Commission to co-operate with supervising authorities in countries and territories outside Jersey. The proposals have been subject to shortened consultation but no objections have been received from industry or Jersey Finance Limited.
Resource Implications: No measurable cost or manpower implications arise for the Commission, the States or industry.
Action required: The Finance Industry Development Executive to undertake the necessary arrangements for the lodging of the Amendment and accompanying Report au Greffe by 24th September 2007 in order for the draft Law to be debated on 6th November 2007.
Signature:		Position: Minster for Economic Development
Date Signed:		Date of Decision:

Financial Services (Amendment No. 4) (Jersey) Law 200-.

MD-E-2007-0183

MINISTER FOR ECONOMIC DEVELOPMENT

FINANCIAL SERVICES (AMENDMENT NO. 4) (JERSEY) LAW 200-

(“THE AMENDMENT”)

JERSEY FINANCIAL SERVICES COMMISSION (“THE COMMISSION”)

ISSUE AND RECOMMENDATION
1. The Commission requests amending the Financial Services (Jersey) Law 1998 (“the Law”) in order to –
  - implement international standards in the regulation of financial service businesses in Jersey in preparation for the IMF assessment in 2008;
  - to improve compatibility with the European Convention on Human Rights (“ECHR”); and,
  - make other minor changes.
1. It is recommended that the Minister for Economic Development approves the Amendment, the Report to be inserted in front of the Amendment by the Publications Officer, signs the certificate of compatibility with the European Convention on Human Rights, and that the Finance Industry Development Executive takes the necessary steps for this to be lodged au Greffe by 24th September 2007, in order that it is debated by the States on 6th November 2007.

BACKGROUND
1. The proposals cover matters that were identified during a self-assessment exercise, undertaken by the Commission, against international regulatory standards, including those issued by IOSCO1 and the IAIS2. These are the standards that will be used during the IMF assessment in 2008. These changes have been the subject of a consultation process.
1. The limited time available to draft the law precluded consultation being conducted on the draft legislation for the usual length of time and the consultation had to be carried out during the holiday season of August. In order to ameliorate the limitations of this consultation, a Position Paper was published in June 2007, which described in some detail the nature of the proposed changes and the reasons for them. A series of seminars was then held for the finance industry at which the proposals were again described and discussion and comment was invited.
1. Neither the Position Paper nor the discussions elicited any adverse comment on the proposals. Only three submissions were received as a result of the consultation paper, all of them from banks: in general, the comments on the draft legislation were supportive, and none was adverse.

THE PROPOSALS
1. In summary, the changes will:
  1. Expand the criteria for refusing an application for registration, or revoking a registration, to include offences by the registered person, or by an employee or associate, under any of a range of legislation, whether the offences occur in Jersey or elsewhere.
  1. Extend the provisions regarding the acceptability of directors, shareholder controllers, etc., so as to apply also to other Key Persons: to date, such persons have been subject to limited regulation on a voluntary basis.
  1. Require a registered person to publicise not merely the fact that it is registered but also such conditions attaching to a registration as the Commission may specify (typically any that limit the scope of its activities).
  1. Permit the Commission to disclose, to the public, the names of certain individuals operating with an investment business i.e. senior management and those employed as a dealer; a discretionary manager; an adviser and a supervisor.
  1. Introduce a right of appeal against decisions of the Commission to issue public statements. This requires provisions such as a requirement for persons to be named in a public statement to be given notice of it, although the Commission will have the authority to decide to issue without prior notice where there is an over-riding need to protect the public or the Island’s reputation.
  1. Make other minor changes, including improvements to the rights of appeal and associated provisions to ensure consistency across all the laws regulating the finance industry.
1. All of these changes affect areas of Jersey law that are likely to be subject to particular scrutiny during the forthcoming IMF assessment. If these changes are not made, criticism is likely to be made by the assessment team.
1. No measurable cost or manpower implications arise for the Commission, the States or industry.
1. The Law Officer’s Department has advised that the Minister may provide the required statement under Article 16(1) of the Human Rights (Jersey) Law 2000.

RECOMMENDATION
1. It is recommended that the Minister for Economic Development approves the Amendment, the Report to be inserted in front of the Amendment by the Publications Officer, signs the certificate of compatibility with the European Convention on Human Rights, and that the Finance Industry Development Executive takes the necessary steps for this to be lodged au Greffe by 24th September 2007, in order that it is debated by the States on 6th November 2007.

JAMES MEWS

Finance Industry Development Executive

1 International Organisation of Securities Commissions

2 International Association of Insurance Supervisors