Banking Business (General Provisions) (Amendment No. 3) (Jersey) Order 201-

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 25 July 2011 regarding:

Decision Reference: MD-E-2011-0117
Decision Summary Title:	Draft Banking Business (General Provisions) (Amendment No.3) (Jersey) Order 201-		Date of Decision Summary:	22 July 2011
Decision Summary Author:	Director, 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:	Draft Banking Business (General Provisions) (Amendment No.3) (Jersey) Order 201-		Date of Written Report:	22 July 2011
Written Report Author:	Director, Finance Industry Development		Written Report : Public or Exempt?	Public
Subject: Banking Business (General Provisions) (Amendment No.3) (Jersey) Order 201- (the “Amending Order”).
Decision(s): On the recommendation of the Jersey Financial Services Commission, the Minister made the Banking Business (General Provisions) (Amendment No.3) (Jersey) Order 2011.
Reason(s) for Decision: The Amending Order changes the requirements (set out in Schedule 2 to the Banking Business (General Provisions) (Jersey) Order 2002 (the “Principal Order”)), for deposit advertisements to require a statement as to whether or not the Jersey Bank Depositors Compensation Scheme will apply, and for information to be given in relation to any other protection schemes that may be applicable. The following minor amendments to the Principal Order are also made by the Amending Order- to update to the reference to legislation that has been superseded ; and to remove a requirement for applications to registration to be in duplicate.
Resource Implications: The draft Order will not have any effect on the financial or manpower resources of the States of Jersey.
Action required: To notify the Greffier of the States and the Law Draftsman that the Order has been made and deliver the signed and sealed Order to the Publications Editor, States Greffe, for notification to the States.
Signature:		Position: Minister for Economic Development
Date Signed:		Date of Decision:

Banking Business (General Provisions) (Amendment No. 3) (Jersey) Order 201- - Draft

BANKING BUSINESS (GENERAL PROVISIONS) (AMENDMENT NO. 3) (JERSEY) ORDER 2011; (the “Amending Order”)

Issue and Recommendation
1. The principal purpose of the Amending Order is to update the existing statutory requirements for a deposit advertisement to make disclosures as to the applicability of deposit protection. The changes are a direct consequence of the Jersey Bank Depositors Compensation Scheme (“Jersey DCS”) having been established.
2. The Minister is recommended to sign and date the order and delivery it to the Greffe.
The Order
1. The existing requirements are contained in Schedule 2 to the Banking Business (General Provisions) (Jersey) Order 2002 (the “Principal Order”), as Condition 4 of a suite of conditions applicable to a deposit advertisement: all other conditions remain unchanged. Condition 4 applies to all deposit advertisements issued in Jersey, whether by a registered person under the Banking Business (Jersey) Law 1991 (the “1991 Law”), or by someone from outside the Island. Failure to comply with these conditions is an offence under Article 20 of the 1991 Law.
2. The Amending Order establishes a requirement for the disclosure of deposit protection under the Jersey DCS in all advertisements issued in Jersey by registered persons. More detailed regulatory requirements are already imposed on registered persons under the Codes of Practice for Deposit-taking Business issued by the Commission and hence there will be no impact on any registered person, except that contravention will now be a criminal, rather than regulatory, breach..
3. For other issuers of deposit advertisements in Jersey, the change introduces a new requirement for a statement that the Jersey DCS does not apply, and disclosure of any applicable protection by statutory deposit protection schemes established outside of Jersey.

2.4. The required disclosure in respect of such schemes is limited to key details, provided that the advertisement provides a reference to a public website where full details are available.

2.5. The disclosure of other forms of deposit protection, such as guarantees provided by parent, is already addressed by the Order and this has been strengthened to specifically require that information about the guarantor is provided wherever an advertisement implies that a deposit will be guaranteed.

2.6. The amendment also updates the names of superseded legislation referenced by the Order and removes the requirement to submit applications for registration in duplicate, which is no longer felt to be useful.

2.7. To allow time for issuers of deposit advertisements (especially those outside of Jersey) to comply with the new requirements, Article 6 of the Amending Order delays its coming into force for six months.

2.8. The proposal to make these changes was the subject of a public consultation paper issued by the Financial Services Commission (the “Commission”). The paper (Reference 5 / 2010), was issued in February 2010 and the consultation period closed on 19 May 2010. No adverse feedback was received during the consultation period. The decision to proceed with steps to establish the new requirements was communicated in a feedback paper issued in September 2010, subject to full implementation not being before 30 June 2011.

2.9. Pursuant to the requirements of Article 20(1) of the Law, the Board of Commissioners has recommended that the Minister makes the Amending Order.

2.10. There are no financial or manpower implications for the States.

Recommendation
1. The Minister is recommended to sign and date the order and delivery it to the Greffe.

Director, Finance Industry Development

July 2011

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23 June 2011