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Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200- .

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A decision made (16/07/2009) regarding: Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200- .

Decision Reference:  MD-E-2009-0122 

Decision Summary Title :

Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200-

Date of Decision Summary:

13 July 2009

Decision Summary Author:

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 :

Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200-

Date of Written Report:

13 July 2009

Written Report Author:

Finance Industry Development Executive

Written Report :

Public or Exempt?

Public

Subject:    

Approval of the Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200-

Decision(s):  

The Minister made the Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200- (“the Order”)

Reason(s) for Decision: 

Non-profit organizations being provided with a ‘prescribed service’ by certain registered persons (e.g. company directors and trustees) are exempt from registration and regulation under the Non-Profit Organisations (Jersey) Law 2008.  Following the introduction of foundations to Jersey, the Order will extend the exemption to NPOs being provided with a ‘prescribed service’ by registered members of the council of a foundation.

 

Resource Implications: 

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

Action required: 

The Minister to sign, date and seal the Order and the Order to be returned to the States Greffe.

Signature:  Senator A.J.H.Maclean 

Position:  Minister

Date Signed: 

Date of Decision (If different from Date Signed): 

Non-Profit Organizations (Amendment No. 2) (Jersey) Order 200- .

MINISTER FOR ECONOMIC DEVELOPMENT  

Non-Profit Organizations (Amendment No. 2) (Jersey)

Order 200- (“the Order”)  
 

1. THE ISSUE AND RECOMMENDATION  

1.1. Non-profit organizations being provided with a ‘prescribed service’ by certain registered persons (e.g. company directors and trustees) are exempt from registration and regulation under the Non-Profit Organisations (Jersey) Law 2008 (“the NPO Law”).   

1.2. Following the introduction of foundations to Jersey, the Order will extend the exemption to non-profit organizations being provided with a ‘prescribed service’ by registered members of the council of a foundation.   

1.3. It is recommended that the Minister signs, dates and seals the Order and the Order be returned to the States Greffe without delay. 
 

2. BACKGROUND  

NPOs  

  1. The NPO Law came into force in August 2008 and provides for the registration and regulation of non-profit organizations (“NPOs”).  It is designed to comply with international standards intended to prevent NPOs being used for terrorist financing.

2.2. An NPO must be registered if it is established or administered in Jersey.  However, there is an exemption from registration and regulation under the NPO Law for ‘regulated NPOs’, i.e. NPOs to which a ‘prescribed service’ is provided in the course of trust company business under the Financial Services (Jersey) Law 1998 (“Financial Services Law”). 

2.3. A ‘prescribed service’ is currently defined in the Non-Profit Organizations (Jersey) Order 2008 (“the 2008 NPO Order”) as being a service provided by:  (i) a registered director of a company; or (ii) a registered trustee of a trust. 

The Order

  1. The Foundations (Jersey) Law 2009 (“the Foundations Law”) was passed by the States in October 2008 and approved by the Privy Council on 10 June 2009.  The Law will come in to force on 17 July 2009 and will introduce a completely new legal entity to Jersey, which is neither a company nor a trust, but has some similarities to both.  Foundations will be administered by a council of members, which will be analogous to the board of directors of a company and the trustees of a trust.
  2. The Foundations Law will amend the Financial Services Law to bring the provision of services to foundations within the scope of trust company business.  Thus, by analogy, it will be appropriate to extend the current exemption for regulated NPOs to NPOs being provided with a ‘prescribed service’ by a registered member of the council of a foundation.  The NPO would then be exempt from registration and regulation under the NPO Law.
  3. The Order will extend the ‘regulated NPO’ exemption in this way by amending the definition of a ‘prescribed service’ contained in the 2008 NPO Order.  This amendment will come into force at the same time as the Foundations Law. 

 
 

3. RECOMMENDATION 

3.1. It is recommended that the Minister signs, dates and seals the Order and the Order be returned to the States Greffe without delay. 
 
 

Finance Industry Development Executive

13 July 2009


 

 

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