Financial Services Advertisements
Providers and/or issuers of financial services advertisements must now comply with the new Advertising Order. The order sets out general principles and specific requirements as to disclosure of information and record-keeping.
Two amendment orders have come into force in respect of Unregulated Funds. The effect of the first order is that SPV GPs and trustees of Unregulated Funds are now exempt from the requirement to be regulated for fund services business. The second order has added the Specialist Fund Market of the LSE to the list of permitted exchanges for Unregulated Exchange-Traded Funds.
Practice Note on the Application of the Regulation of Undertakings and Development Law (Jersey) 1973 for General Partners of Limited Partnerships
This Practice Note provides that where a general partner of a limited partnership does not directly employ any staff in Jersey and enjoys no exclusive right of occupation of any floor space in Jersey, and benefits from the staff and/or premises of its administrator (being a person licensed to provide administration services pursuant to the Financial Services (Jersey) Law 1998, as amended) it will be treated as exempt for the purposes of the Regulation of Undertakings and Development Law (Jersey) 1973 (the "Law") under the exemptions specified in the Regulation of Undertakings and Development (Jersey) Regulation, 1978. For the avoidance of doubt, such treatment shall not be dependent upon where the business of the limited partnership is being conducted by the general partner.
The Practice Note does not revoke any licence issued under the Law prior to the date of the Practice Note but in cases where, pursuant to the Practice Note, a licence under the Law would not be required the general partner holding such licence is permitted to apply for the revocation of any such licence.
Guidance Note for Managers of Managed Entities
This Guidance Note was published by the JFSC in relation to acting as the Manager of a Managed Entity (a "MoME"), being a class of fund services business introduced under the Financial Services (Jersey) Law 1998 (the "FSJ Law").
The FSJ Law does not provide a definition of the activities that would constitute acting as a MoME - however, in broad terms, the activity is interpreted by the Commission as involving the provision of management services to another person registered to conduct fund services business so as to enable that person (the "managed entity") to comply with a material part of the regulatory framework.
The fund services business licensing policy establishes that a managed entity shall have a MoME. It is not for the Commission to determine who shall be the MoME; however, where a service provider has supplied the managed entity with a compliance officer, the Commission would ordinarily expect that provider to be fulfilling the MoME role. The Commission also regards the provision of the following services, from within Jersey, as being indicative of a MoME relationship:
- provision of director(s);
- provision of a money laundering reporting officer and/or a money laundering compliance officer;
- maintenance of statutory and non-statutory books and records for the managed entity, in particular minutes of board meetings and statutory registers;
- inclusion of the managed entity on the MoME's PII policy;
- provision/adoption of MoME's procedures manual by the managed entity;
- provision of company secretarial services to the managed entity; and
- provision of a registered office for the managed entity.
New Prospectus Order
The Jersey Financial Services Commission is proposing amendments to the regulation of prospectuses issued by Jersey 'certified funds' - that is, collective investment funds established under the Collective Investment Funds (Jersey) Law 1998, which includes Jersey Expert Funds.
The changes are to be introduced by the Collective Investment Funds (Certified Funds – Prospectuses) (Jersey) Order 200- (the "New Prospectus Order") and existing legislation will either be amended or revoked to make way for the new order as it comes into force.
In some areas the New Prospectus Order will enhance disclosure requirements, bringing Jersey into line with the latest international standards. It will also formalise the regulation of certain types of non-corporate certified funds, which previously fell outside of the scope of existing regulation.