Financial Services Commission (Amendment No. 8) (Jersey) Law 2022

Financial Services Commission (Amendment N o. 8) (Jersey) Law 2022 Contents Article 1 Financial Services Commission (Jersey) Law 1998 amended . 3 2 Article 1(1) (interpretation) amended . 3 3 Article 21A (power to impose civil financial penalties) substituted . 4 4 Article 21B (level of penalty and criteria for imposition) amended . 5 5 Article 21C (notification of imposition of penalty) amended . 6 6 Article 21D (restrictions on powers of Commission in respect of notices) amended 6 7 Article 21E (late payment surcharge and enforcement) amended . 7 8 Article 21F (appeal against imposition of penalty) amended . 7 9 Article 21G (proceeds of penalties) amended . 7 10 Citation and commencement . 7 Financial Services Commission (Amendment No. 8 ) (Jersey) Law 2022 A LAW to amend further the Financial Services Commission (Jersey) Law 1998 . Adopted by the States 19th January 2022 Sanctioned by Order of Her Majesty in Council 13th April 2022 Registered by the Royal Court 22nd April 2022 Coming into force 29th April 2022 THE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law – 1 Financial Services Commission (Jersey) Law 1998 amended This Law amends the Financial Services Commission (Jersey) Law 1998 . 2 Article 1(1) (interpretation) amended In Article 1(1) – ( a ) the following definitions are inserted in the correct alphabetical sequence – “ “key person”, in relation to a registered person, means a person who – ( a ) is or was employed or otherwise engaged by a registered person as a money laundering reporting officer; or ( b ) is or was designated as such by the registered person under Article 9 of the Money Laundering (Jersey) Order 2008 ; “money laundering reporting officer” means a person appointed as reporting officer under the Money Laundering (Jersey) Order 2008 ; “senior management function”, in relation to a registered person, means a function designated as such by the Commission by notice published on the Commission’s website where – ( a ) the function requires the individual performing it to be responsible for managing one or more aspects of the registered person’s affairs; and ( b ) those aspects involve, or might involve, a risk of serious consequences – ( i ) for the registered person, or ( ii ) for business or other interests in Jersey, and in paragraph (a), managing one or more aspects of the registered person’s affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on;”; ( b ) for the definition “principal person” there is substituted – “ “principal person” means – ( a ) a director, controller or manager within the meaning given by Article 1 of the Banking Business (Jersey) Law 1991 ; ( b ) a chief executive or shareholder controller as defined in Article 1(1) of the Insurance Business (Jersey) Law 1996 or any individual acting as a director of a permit holder (within the meaning given by Article 1(1) of that Law) ; ( c ) a principal person as defined in Article 1(1) of the Financial Services (Jersey) Law 1998 ; ( d ) a principal person as defined in Article 1(1) of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 ; ( e ) a principal person as defined in Regulation 2 of the Alternative Investment Funds (Jersey) Regulations 2012 ; or ( f ) a principal person as defined in Article 1(1) of the Collective Investment Funds (Jersey) Law 1988 , and includes a person who was a principal person as defined in paragraph (a), (b), (c), (d), (e) or (f);”; ( c ) in the definition “registered person” after paragraph (d) there is inserted – “( e ) a supervised person as defined in Article 1(1) of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 ; ( f ) a certificate holder as defined in Article 1(1) of the Collective Investment Funds (Jersey) Law 1988 ; ( g ) a person required to be a registered person, permit holder, service provider, supervised person or certificate holder under any of the Laws referred to in paragraph (a), (b), (c), (d), (e) or (f);”. 3 Article 21A (power to impose civil financial penalties ) substituted For Article 21A there is substituted – “ 21A Power to impose civil financial penalties ( 1 ) If the Commission is satisfied that a registered person has, to a significant and material extent, contravened any enactment or Code of Practice to which this Article applies, the Commission may – ( a ) except where that registered person is a fund, impose on that registered person a penalty to the extent permitted by the following provisions of this Law; ( b ) if satisfied that the contravention by the registered person was – ( i ) committed with the consent or connivance of, or was attributable to neglect on the part of a principal person, key person or any person who performs or performed a senior management function, or ( ii ) aided, abetted, counselled or procured by a principal person, key person or any person who performs or performed a senior management function, impose on that principal person, key person or person who performs or performed a senior management function, a penalty to the extent permitted by this Law (despite the fact that the registered person is a fund). ( 2 ) This Article applies to – ( a ) the Money Laundering (Jersey) Order 2008 ; and ( b ) the Codes of Practice issued by the Commission under – ( i ) Article 15 of the Collective Investment Funds (Jersey) Law 1988 ; ( ii ) Article 19A of the Banking Business (Jersey) Law 1991 , ( iii ) Article 42 of the Insurance Business (Jersey) Law 1996 , ( iv ) Article 19 of the Financial Services (Jersey) Law 1998 , ( v ) Article 22 of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 , ( vi ) Regulation 22 of the Alternative Investment Funds (Jersey) Regulations 2012 . ( 3 ) The Minister may by Order amend paragraph (2).”. 4 Article 21B (level of penalty and criteria for imposition) amended In Article 21B – ( a ) for paragraphs (3) and (3A) there is substituted – “( 3 ) In considering whether to impose a penalty on a registered person, principal person, key person or any person who performs or performed a senior management function and the amount of the penalty to be imposed, the Commission must, where applicable, have regard to the following matters – ( a ) the seriousness of the contravention; ( b ) whether or not the person knew or ought to have known of the contravention; ( c ) whether or not the person voluntarily reported the contravention; ( d ) whether or not the person has taken steps to rectify the contravention and to prevent its recurrence; ( e ) the potential financial consequences to the person and to third parties (including customers and creditors of the person) of imposing the penalty; ( f ) the principle of ensuring that a person cannot expect to profit from the contravention; ( g ) the penalties imposed by the Commission in other cases; and ( h ) the principles mentioned in paragraph (4) other than those set out in this paragraph.”; and ( b ) in paragraph (4) there is deleted “and paragraph (3A)(a) to (d)”. 5 Article 21C (notification of imposition of penalty) amended In Article 21C – ( a ) for “registered person or principal person” wherever it occurs there is substituted “registered person, principal person, key person or any person who performs or performed a senior management function”; ( b ) in paragraph (1)(b)(i) after “Code of Practice” there is inserted “or the Money Laundering (Jersey) Order 2008 ”; ( c ) for sub-paragraph (2)(a) there is substituted – “( a ) details of the alleged contravention;”. 6 Article 21D (restrictions on powers of Commission in respect of notices) amended In Article 21D – ( a ) for paragraph (2A) there is substituted “( 2A ) The Commission must not issue a notice of intent under Article 21C(1) in respect of a contravention of the Money Laundering (Jersey) Order 2008 that occurred before the commencement of the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022, except that if the contravention was continuing at the time of the commencement of that Law, a notice of intent may be issued in respect of such part of the contravention as continued after the commencement. ( 2B ) The Commission must not issue a notice of intent under Article 21C(1) to a key person or a person who performs or performed a senior management function in respect of a contravention of a Code of Practice that occurred before the commencement of the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022, except that if the contravention was continuing at the time of the commencement of that Law, a notice of intent may be issued in respect of such part of the contravention as continued after the commencement. (2C) The Commission must not issue a notice of intent under Article 21C(1) to – ( a ) a supervised person within the meaning of Article 1(1) of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008 who was not a registered person prior to the commencement of the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022 ; or ( b ) a certificate holder within the meaning of Article 1(1) of the Collective Investment Funds (Jersey) Law 1988 , in respect of a contravention of a Code of Practice that occurred before the commencement of the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022, except that if the contravention was continuing at the time of the commencement of the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022, a notice of intent may be issued in respect of such part of the contravention that continued after such commencement. ( 2D ) The Commission must not issue a notice of intent under Article 21C(1) to an individual more than 6 years after the contravention giving rise to the notice came to the attention of the Commission.”; ( b ) in paragraph (4) for “(2A)” there is substituted “(2D)”. 7 Article 21E (late payment surcharge and enforcement) amended For Article 21E(4) – “( 4 ) A penalty, including any surcharge imposed on a registered person, principal person, key person or any person who performs or performed a senior management function, may be enforced as if it were a debt owed by that person to the Commission.”. 8 Article 21F (appeal against imposition of penalty) amended In Article 21F(1) for “registered person or principal person” there is substituted “registered person, principal person, key person or any person who performs or performed a senior management function”. 9 Article 21G (proceeds of penalties) amended In Article 21G(2) for “principal person” in both places where it appears there is substituted “principal person, key person or a person who performs or performed a senior management function”. 10 Citation and commencement This Law may be cited as the Financial Services Commission (Amendment No. 8) (Jersey) Law 2022 and comes into force 7 days after it is registered.