Jersey To Amend Trust Company Rules

Friday, April 2, 2010

The Jersey Financial Services Commission has launched a consultation on proposed changes to trust company business exemptions with regard to persons undertaking the activity of a director under the Financial Services (Jersey) Law (FS(J)L) 1998.

The consultation paper will be of particular interest to:

• Individuals that act as directors, on a professional basis, of companies that they do not beneficially own; and
• Individuals that are currently relying on ‘the connected persons exemption’.

The Consultation Paper proposes the following two changes in respect of Trust Company Business exemptions:-

• To present a new exemption that introduces “de minimis” provisions which will allow an individual to hold a maximum of six directorships (in addition to any that would otherwise be exempt) before the need to register under the FS(J)L is triggered.
• To restrict the scope of the ‘Connected Persons’ exemption contained in the note to paragraph 1 of the Schedule to the Financial Services (Trust Company Business (Exemptions No 4)) (Jersey) Order 2000.

In addition, although not subject to the consultation process, the Commission has taken this opportunity to re-publish the Guidance Note (first published in February 2009) entitled “Natural Persons undertaking the Activity of Acting as a Director under the Financial Services (Jersey) Law 1998”.