Guernsey: All Change - Proposed Amendments to Regulatory Legislation

Last Updated: 6 September 2007
Article by Mark Chambers


In June of this year, the Jersey Financial Services Commission (the "Commission") issued Position Paper No. 4 in relation to amendments to regulatory legislation. The primary legislation to which this relates is the Banking Business Law (Jersey) 1991, Collective Investments Funds (Jersey) Law 1988 (the "CIF Law"), Financial Services (Jersey) Law 1998 ("FSL") and the Insurance Business Law (Jersey) 1996 (together, the "Regulatory Laws").

The proposed amendments are in anticipation of the visit of the International Monetary Fund ("IMF") to the Island for an assessment, due to take place in 2008, of the extent to which Jersey meets the standards set by various international regulatory bodies (including the International Organization of Securities Commissions and the Basel Committee on Banking Supervision). The emphasis of the assessment is to focus primarily upon the practical implementation of the regulatory legislation that has already been put in place. The assessment is conducted by comparison of the level of compliance by Jersey with a number of principles set by these international regulatory bodies.

The importance of the IMF visit cannot be underestimated as assessments are undertaken every five years and there is no opportunity to update the findings in the intervening period. As such, Jersey must demonstrate not only the extent and high standard of regulation implemented in the Island, but also the degree to which the regulatory framework is applied in practice.

Logistically, given the short timeframe to effect the amendments, the key focus at present is on primary legislation. However, there are also proposals to make amendments to secondary legislation (Orders and Regulations) which may be brought into force in a shorter period.

The purpose of this brief article is to highlight a few of the changes to the Regulatory Laws that are proposed.

Prevention of Individuals Working in the Regulated Finance Sector

An explicit power will be introduced in the Regulatory Laws to prevent an individual from operating in the regulated finance industry. It is worth noting that this may apply to any person involved in a regulated financial industry sector, whether they constitute a "principal person" (or indeed a "key person") or not (as defined in the Regulatory Laws). At present, the current legislative framework only enables the Commission to ensure that persons do not work in the finance industry indirectly, though the licensing of regulated entities. It has been emphasised that this course will only be taken by the Commission in exceptional circumstances and a policy document will be formulated for guidance in this respect. There will also be a right of appeal to the Royal Court.

Extension of "Principal Person" Regime to "Key Person"

It is proposed to extend the scope of powers contained in the Regulatory Laws for the Commission to interact with individuals acting as "key persons" in the same manner as with "principal persons". "Key persons" are considered to be those holding a position of Compliance Officer, Money Laundering Reporting Officer and a new position of Money Laundering Compliance Officer (from 1 January 2008, following the implementation of a revised anti-money laundering framework). At present, there are no explicit powers for the Commission to vet individuals wishing to act as "key persons" and the Commission must go indirectly to the relevant registered entity to request for removal of an individual if unsuitable. It is felt that the increasingly important role of "key persons" is such that the powers and obligations of the Commission under the Regulatory Laws relating to principal persons should be extended to "key persons" in addition. In practice, as "key persons" submit personal questionnaires to the Commission already, this should have limited impact on filing requirements.

Disclosure of Conditions and Management

In order to ensure that the IOSCO requirement to provide the public access to relevant information concerning a licensee will be met, the Commission proposes to make publicly available any specific conditions applicable to a regulated entity which may limit the scope of its permitted activities. The Regulatory Laws will be amended to permit the Commission to make disclosure of conditions where it believes it is in the public interest to do so. Again, an explicit power is required in this regard, as it is not clear at present whether there is adequate authority under the Regulatory Laws to disclose conditions. A policy statement will be issued to outline the criteria for determining whether disclosure of certain conditions will be appropriate. Whilst this change is primarily focussed on investment business, it is proposed that the policy will also apply to other regulated finance sectors: banking business, collective investment funds, insurance business and trust company business.

It is further proposed to disclose the identity of senior management and investment employees of regulated entities on the Commission’s website.

Advertising Order

The introduction of an advertising order for businesses regulated to conduct financial services businesses will not only provide greater clarity as to the minimum standards for advertisements placed in the Island, but more importantly provide a basis for reliance on certain exemptions under the FSL (relating to overseas persons) requiring compliance with an advertising order that currently does not exist. The proposals for an advertising order will prescribe the following general principles, including (a) the identification of the issuer; (b) that written advertisements should be clear, fair and not misleading and indicate that the relevant person is licensed to undertake the business to which the advertisement relates; and (c) a statement to be included that the Commission has not endorsed the advertisement or the product or service to which it relates.

Disclosures by Funds

The current framework for disclosure requirements in relation to collective investment funds leaves some categories of funds without any specific requirements for the contents of an offering document. In particular, this applies to limited partnerships and closed-ended unit trusts. It is therefore proposed to amend the relevant statutory order of the CIF Law to address the gaps identified in disclosure requirements.


The changes are intended to conform each of the Regulatory Laws as much as possible, but also to respond to the requirements of international regulatory bodies. It is worth noting that the majority of the proposed amendments to the Regulatory Laws reflect the current practice and approach of the Commission. Nevertheless, the amendments are considered important to ensure that Jersey maintains its reputation as a well regulated jurisdiction and that, in practice, the regulatory framework is applied.

A further paper will be issued shortly by the Commission with drafts of the specific amendments to the Regulatory Laws for comment by the industry.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions