Josephine Howe Matthew Shaxson February 8 2021 In force: Financial Services (Disclosure and Provision of Information) (Jersey) Law, Order and Regulations Ogier | White Collar Crime - Jersey Josephine Howe , Matthew Shaxson White Collar Crime IntroductionOrder and regulationsSignificant personsNominated personsRelevant datesDispensationAdditional requirements for foundationsCommentIntroductionOn 6 January 2021 the Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 (the DPI Law) came into effect, together with the Financial Services (Disclosure and Provision of Information) (Jersey) Order (the DPI Order) and the Financial Services (Disclosure and Provision of Information) (Jersey) Regulations (the DPI Regulations).The DPI Law affects Jersey companies, foundations, incorporated limited partnerships, limited liability companies, limited liability partnerships and separate limited partnerships (both existing and new). The DPI Law introduces a revised statutory framework for reporting information on beneficial owners and controllers to the Jersey Financial Services Commission (JFSC). The most important change is the introduction of the concept of 'significant persons' for these entities, with certain reportable information being made publicly available for the first time.The DPI Law enabled the States of Jersey to make secondary legislation which determines the reported information that will be made available for public inspection.(1)This article provides an overview of the secondary legislation introduced under the DPI Law– namely, the DPI Order and the DPI Regulations– and an update on the filing deadlines now that the new legislation is in effect.Order and regulationsThe DPI Order (adopted by the States of Jersey on 23 December 2020) details the information required to be reported to the JFSC about beneficial owners and significant persons of entities to ensure transparency and compliance with international standards. While for most entities reporting details of beneficial owners to the JFSC has been mandatory for some time, it is a new requirement in respect of foundations.The DPI Regulations (adopted by the States of Jersey on 18 November 2020) detail the information on significant persons that will appear on the public register and set out the application process for preventing information about a significant person from being available for public inspection.Significant personsIn relation to each entity type, the significant person will be as follows:companies – a director or secretary of the company;foundations – a member of the council of the foundation;incorporated limited partnerships and separate limited partnerships – a general partnerlimited liability partnerships – a limited partner participating in the management of the partnership; andlimited liability companies – a manager of the company.The following information relating to individuals who are significant persons of an entity which is reportable to the JFSC will be made public:name;month and year of date of birth;address for correspondence;nationality; andoccupation.If an entity's significant person is an entity, the following information will be made public:the type of entity;its registered name;its number;its date of incorporation; andits registered office address.If the significant person is a foreign entity, the jurisdiction in which it is incorporated will also be made public.Limited partnerships are not defined as 'entities' in the DPI Law and, as such, do not fall within its scope. The obligation to provide and update beneficial ownership and controller information for limited partnerships will continue as part of the Control of Borrowing (Jersey) Order (COBO) 1958 regime and existing COBO consents for limited partnerships will remain unchanged.Each entity will be required to provide an annual confirmation statement verifying that its beneficial owners and significant persons remain the same, updating where necessary. This will replace the annual return for companies and will be subject to a fee. In order to accommodate the filing of reportable information under the DPI Law, the JFSC has launched a new online registry portal, together with certain guidance which has now been made available.Nominated personsUnder the DPI Law, each entity must also nominate a person who is resident in Jersey (a 'nominated person'), who will provide the information and interface with the JFSC. This may vary from entity to entity but can include:a trust company regulated by the JFSC;a significant person from the entity who is resident in Jersey;a lawyer; oran accountant.Relevant datesNotably, there are deadlines to meet these reporting requirements in April and June 2021. Foundations have until 6 April 2021 to file abridged regulations. All entities must appoint their nominated person by 6 April 2021 and have until 30 June 2021 to file the annual confirmation statement (being a recent extension from the original deadline of 30 April 2021).From 2022 that deadline will revert to between 1 January and the end of February each year.The JFSC guidance provides that significant person information will not be made available on the public register before 1 October 2021.DispensationThere is a dispensation process pursuant to the DPI Regulations by which a nominated person can apply to prevent information about a significant person from being made publicly available. The dispensation aims to:protect a significant person (or a person who lives with them) at risk of violence, intimidation or physical or mental harm as a result of the information being published;mitigate a serious risk of damage or threat to property; ormaintain the confidentiality of information which relates to an individual who lacks capacity to manage their own affairs.Other applications may also be considered in exceptional circumstances.Additional requirements for foundationsOne final point to mention relates to the new requirement under the DPI Law for existing foundations to provide abridged regulations when completing their first annual confirmation statement and also on the incorporation of a new foundation.'Abridged regulations' are those parts of the regulations of a foundation comprising the information required to be included in the regulations under Articles 12 and 14 of the Foundations (Jersey) Law 2009 (the Foundations Law), but, importantly, not including any information from which a person can or may be identified.In summary, Article 12 of the Foundations Law sets out what the regulations of a foundation must include in respect of:the establishment and functions of the council;the appointment and retirement of its qualified member and council members; andcouncil functions and decision making (including whether such functions or decisions must be exercised in conjunction with or with the approval of another person or can be delegated).Article 14 of the Foundations Law sets out what the regulations must include in respect of the guardian, including the identity of the initial guardian of the foundation and provision for the retirement, appointment and remuneration of guardians.The JFSC guidance states that any information that can or may identify a person need not be included in the abridged regulations. It does not suggest how to go about doing this but advises to exclude only what is necessary to protect the identity of the individual and to ensure that the abridged regulations still make sense. It therefore seems that redaction may be the appropriate approach to take when excluding personal information from the regulations of an existing foundation. New foundations can be drafted so that personal information is included in schedules separate to the regulations.CommentIn light of the April and June 2021 deadlines, entities affected by the DPI Law should consider the impact of these changes and start preparing the additional reportable information.For further information on this topic please contact Josephine Howe or Matthew Shaxson at Ogier by telephone (+44 1534 514 000) or email ([email protected] or [email protected]). The Ogier website can be accessed at www.ogier.com.Endnotes(1) For further information on the DPI Law and the background to its introduction, please see "Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020".