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Orders to Prescribe Conditions for the Appointment of a Manager under Financial Services Regulatory Laws.

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.

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A decision made (11/11/2008) regarding: Orders to Prescribe Conditions for the Appointment of a Manager under Financial Services Regulatory Laws.

Decision Reference:   MD-E-2008-0216 

Decision Summary Title:

Orders to Prescribe Conditions for the Appointment of a Manager Under Financial Services Regulatory Laws.

Date of Decision Summary:

11 November 2008

Decision Summary Author:

James Mews,

Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title:

Orders to Prescribe Conditions for the Appointment of a Manager Under Financial Services Regulatory Laws.

Date of Written Report:

11 November 2008

Written Report Author:

James Mews,

Finance Industry Development

Written Report :

Public or Exempt?

Public

Subject:

Collective Investment Funds (Appointment of a Manager) (Jersey) Order 200-

Banking Business (Appointment of a Manager) (Jersey) Order 200-

Insurance Business (Appointment of a Manager) (Jersey) Order 200-

Financial Services (Appointment of a Manager) (Jersey) Order 200-

Decision(s):

The Minister made the following Orders –

(a) Collective Investment Funds (Appointment of a Manager) (Jersey) Order 2008;

(b) Banking Business (Appointment of a Manager) (Jersey) Order 2008;

(c) Insurance Business (Appointment of a Manager) (Jersey) Order 200-; and

(d) Financial Services (Appointment of a Manager) (Jersey) Order 200-.

Reason(s) for Decision:

  • To prescribe the circumstances in which the powers under the respective primary Laws may be exercised for a person to be appointed to manage the affairs of a person carrying on business that is subject to regulation under that Law; and by such prescription to give effect to those powers.
  • To enhance the ability of the Commission to exercise its function to supervise financial services provided in or from within Jersey.

Resource Implications: 

There are no measurable financial or manpower costs for the States.

Action required: 

The Minister to sign, date and seal the Orders.

Department to return the sealed Orders to the States Greffe immediately.

Signature:  Senator P.F.C.Ozouf 

Position: Minister for Economic Development 
 

Date Signed: 

Date of Decision:       

Hide report
Orders to Prescribe Conditions for the Appointment of a Manager under Financial Services Regulatory Laws.

Draft Orders to Prescribe Conditions for the Appointment of a Manager under Financial Services Regulatory Laws. 
 

Draft Collective Investment Funds (Appointment of a Manager) (Jersey) Order 200-

Draft Banking Business (Appointment of a Manager) (Jersey) Order 200-

Draft Insurance Business (Appointment of a Manager) (Jersey) Order 200-

Draft Financial Services (Appointment of a Manager) (Jersey) Order 200-

(Together, “the Draft Orders”) 

Collective Investment Funds (Jersey) Law 1988 (“CIFL”)

Banking Business (Jersey) Law 1991 (“BBL”)

Insurance Business (Jersey) Law 1996 (“IBL”)

Financial Services (Jersey) Law 1998 (“FSL”)

(Together, the “Financial Services Regulatory Laws”) 
 

  1. THE ISSUE AND RECOMMENDATION

 

  1. Recent amendments to the CIFL, BBL and IBL included the addition of provisions that allow for a person to be appointed to manage the affairs, or any part of the affairs of regulated persons and for the Minister to make Orders to set out the circumstances in which this power may be exercised by the Financial Services Commission (the “Commission”). 

 

  1. It is recommended that the Minister signs, dates and seals the four Orders and that they be lodged au Greffe.

 

  1. BACKGROUND

 

  1. These amendments to the CIFL, BBL and IBL are substantially the same as those that previously existed under the FSL, except that, in the case of the BBL only, the appointment is to be made by the Commission, whereas under the other laws, it is the Court that decides on the application of the Commission whether or not to make the appointment.

 

  1. Each of the laws also provides for the Minister to make an Order, on the recommendation of the Commission, that prescribes the circumstances in which the power may be exercised.

 

  1. The Commission has made such a recommendation and consultation has been carried out with industry through the Commission and Jersey Finance.  There has been no objection to the proposed Orders.

 

  1. CONTENTS OF THE ORDERS

 

  1. The detailed circumstances are contained in a schedule to each Order.  These include where there has been inadequate management of the affairs of the business, where there has been a failure of the cessation of business in an orderly manner, following complaints by relevant parties, where the person is not regulated but should be, and where the regulated person has failed to comply with regulatory requirements such as conditions or directions.

 

  1. In preparing the Draft Orders, the opportunity has been taken to review the criteria set out in the Order made under the FSL and this has resulted in some small changes being introduced to that Order to achieve consistency across all the laws. 

 

  1. In each of the other Orders the circumstances prescribed are, mutatis mutandis, the same as in the proposed new order under FSL. The most significant difference is the omission from the Order under the BBL of the example of a serious breach of fiduciary duty being an indicator of inadequate management; this omission being due to the fact that there is no such obligation in the relationship between a bank and a depositor.

 

  1. RECOMMENDATION

 

  1. It is recommended that the Minister signs, dates and seals the four Orders and that they be lodged au Greffe.

 
 

JAMES MEWS

Finance Industry Development Executive

11 November 2008

 

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