Companies (Designated Body) (Jersey) Order 2012

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 11 December 2012:

Decision Reference: MD-E-2012-0164

Decision Summary Title :

Companies (Designated Body) (Jersey) Order 2012

Date of Decision Summary:

10 December 2012

Decision Summary Author:

Director,

Finance Industry Development

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Oral

Person Giving

Oral Report:

Director, Finance Industry Development

Written Report

Title :

Companies (Designated Body) (Jersey) Order 2012

Date of Written Report:

N/A

Written Report Author:

Director,

Finance Industry Development

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Companies (Designated Body) (Jersey) Order 2012

Decision:

The Minister made the Companies (Designated Body) (Jersey) Order 2012.

Reason(s) for Decision:

The Companies (Professional Oversight Board) (Jersey) Order 2010 (“the POB Order”) designated the United Kingdom’s Professional Oversight Board (“POB”) to carry out certain ‘oversight’ functions under the Companies (Jersey) Law 1991 (the “Companies Law”). That designation is part of the regime for Recognized Auditors that was introduced into Part 16 of the Companies Law in 2010.

Until 2 July 2012, the POB constituted a separate ‘board’ under the articles of association of The Financial Reporting Council Limited (“FRC”), a company registered in England. On 2 July 2012 the FRC was restructured. Part of that restructure involved the disbanding of the POB as a separate board of the FRC. Secondary legislation has been passed by the UK Parliament which means that the statutory functions that were previously carried out in the UK in the name of the POB are now carried out directly in the name of the FRC.

Consequential amendments to the statutory provisions in Jersey are needed to reflect this restructure of the FRC (although the legal entity carrying out the oversight function – the FRC – has not changed). The Designated Body Order will achieve this by directly designating the FRC and revoking the POB Order.

In accordance with the provisions of Article 113N(1) of the Companies Law, the Jersey Financial Services Commission has recommended that the Minister make the Designated Body Order.

Resource Implications:

There are no financial or manpower implications for the States of Jersey arising as a result of this decision.

Action required:

The Order is sealed and forwarded to the States Publications editor for publication forthwith.

Signature:

Senator AJH Maclean

Position:

Minister for Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Companies (Designated Body) (Jersey) Order 2012

Jersey Crest

Companies (Designated Body) (Jersey) Order 2012

Explanatory Note

This Order designates The Financial Reporting Council Limited for the purposes of Articles 113K, 113L and 113N of the Companies (Jersey) Law 1991 (the “Law”). The Order replaces the Companies (Professional Oversight Board) (Jersey) Order 2010, which designated the Professional Oversight Board.

As the designated body, The Financial Reporting Council may (or must, in the case of Article 113M) carry out the following powers and duties of the Financial Services Commission –

Article 113K of the Law empowers the Commission or designated body to require a recognized professional body (for example, the Institute of Chartered Accountants in England and Wales) to give notice of events and provide information.

Article 113L empowers the Commission or designated body to require a recognized auditor to provide information.

Article 113M requires the Commission or designated body to ensure that, where a recognized auditor conducts an audit of a market traded company under Part 16 of the Law, the audit must be carried out in accordance with the rules referred to in the Law.

As the designated body, The Financial Reporting Council Limited is required to report to the Minister for Economic Development at least once a year, and from time to time as required, on the exercise of the powers conferred and the discharge of the duties imposed on it as the designated body.

The Professional Oversight Board’s last report as designated body was delivered in 2011 and related to the period March 2010 to March 2011. Given that the Professional Oversight Board was established under the articles of association of The Financial Reporting Council Limited, transitional provision is made for continuity of reporting by the designated body. The transitional arrangement requires The Financial Reporting Council Limited to report on the discharge of the designated body’s functions from March 2011 onwards, notwithstanding that it is only designated from commencement of this Order.

File No. 909/22

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