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Control of Borrowing (Amendment No. 14) (Jersey) Order 201-; and Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201-

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 3 October 2010 regarding:

Decision Reference: MD-E-2011-0154

Decision Summary Title :

Control of Borrowing (Amendment No. 14) (Jersey) Order 201-; and Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201-.

Date of Decision Summary:

September 2011

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?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Control of Borrowing (Amendment No. 14) (Jersey) Order 201-; and Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201-.

Date of Written Report:

September 2011

Written Report Author:

Director,

Finance Industry Development

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:  

 

Making of the Control of Borrowing (Amendment No. 14) (Jersey) Order 2011 and the Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 2011 (collectively, “the Orders”).

 

Decision(s):

 

The Minister made the Orders.

 

Reason(s) for Decision:

 

The 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”).

Resource Implications:

 

There are no financial or manpower implications for the States of Jersey.

 

Action required:

 

The Orders to be signed and sealed and returned to the Greffe forthwith.

 

Signature:

 

Senator AJH Maclean

Position:

Minister for Economic Development

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Control of Borrowing (Amendment No. 14) (Jersey) Order 201-; and Financial Services (Trust Company Business (Exemptions No. 3)) (Amendment) (Jersey) Order 201-

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

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