Financial Services
Ombudsman (Jersey) Law 2014
A LAW to establish a Financial
Services Ombudsman and for related purposes
Adopted by the
States 1st April 2014
Sanctioned by
Order of Her Majesty in Council 16th July 2014
Registered by the
Royal Court 25th
July 2014
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
Part 1
Interpretation
1 Interpretation
In this Law, unless the context otherwise
requires –
“board” means the
board of the OFSO, established by Article 2(2);
“Commission” means
the Jersey Financial Services Commission established by the Financial Services
Commission (Jersey) Law 1998[1];
“committee” means a
committee authorized under paragraph 8(1) of Schedule 1;
“complainant” has
the meaning given by Article 7;
“financial service provider”
means a person carrying on relevant financial services business;
“Minister” means the
Minister for Economic Development;
“OFSO” means the
Office of the Financial Services Ombudsman established by Article 2;
“Ombudsman” means a
person designated as such under Article 5(1)(b), and includes the
Principal Ombudsman;
“Principal Ombudsman”
means the person appointed as such under Article 4(1);
“publish”, in
relation to publication of a matter by the OFSO, means publish the matter in a
manner appearing to the OFSO to be likely to bring the matter to the attention
of those affected by it;
“relevant financial services business”
has the meaning given by Article 9;
“respondent” means a
person against whom a complaint may be entertained by virtue of Article 10;
“staff” has the
meaning given by Article 4(3).
Part 2
Establishment and functions of OFSO
2 Establishment
of OFSO
(1) There
is to be a body corporate to be known as the Office of the Financial Services
Ombudsman (“OFSO”).
(2) The
OFSO is to have a board, whose members are the OFSO’s directors, consisting
of –
(a) a Chairman;
and
(b) at
least 2, and no more than 4, other members.
(3) Schedule 1
makes further provision in relation to the constitution of the OFSO.
(4) Schedule 2
makes provision in relation to the finances of the OFSO.
(5) The
States may by Regulations amend –
(a) paragraph (2)(b),
to alter the minimum or maximum number of members;
(b) Schedule 1,
other than paragraph 11.
3 General
functions of OFSO
(1) The
primary function of the OFSO is to administer the operation of this Law to
secure that complaints about financial services are resolved –
(a) independently,
and in a fair and reasonable manner;
(b) effectively,
quickly, with minimum formality, and so as to offer an alternative to court
proceedings that is more accessible for complainants; and
(c) by
the most appropriate means, whether by mediation, referral to another forum,
determination by an Ombudsman or in any other manner.
(2) The
OFSO has in addition any other function conferred on or transferred to it under
this Law or any other enactment.
(3) The
States may by Regulations –
(a) transfer
to the OFSO any function under any other enactment, to the extent that the
function relates to complaints about financial services; and
(b) amend
this Law or any other enactment in order to give effect to any transfer of
functions to the OFSO under sub-paragraph (a).
(4) The
board of the OFSO must, in carrying out its functions, seek to protect the
independence of the OFSO, including in particular the independence of the Ombudsmen,
from –
(a) the
States of Jersey, and in particular the Minister (subject to paragraph (5)(b));
(b) persons
providing funding for the OFSO;
(c) financial
service providers;
(d) persons
who use the services of financial service providers;
(e) the
Commission; and
(f) any
other influence that might compromise its independence.
(5) Paragraph (4)
does not require the board to protect the independence of the OFSO from –
(a) any
corresponding body in Guernsey, if there is an arrangement described in Article 6(1);
(b) the
Minister, to the extent that the Minister is exercising his or her power under paragraph 12
of Schedule 1 or under any other provision of this Law.
4 Appointment
of Principal Ombudsman and other staff of OFSO
(1) The
board of the OFSO must appoint as the Principal Ombudsman, for a period of at
least 5 years, a person appearing to the board to have the appropriate
qualifications and experience to perform the functions of the Principal
Ombudsman under this Law.
(2) The appointment of the Principal Ombudsman is
to be on such terms (including terms as to the early termination of his or her
appointment and as to remuneration) as the board considers –
(a) promote the independence of the Principal
Ombudsman; and
(b) are otherwise appropriate.
(3) The OFSO –
(a) must secure the availability of a sufficient
number of other suitable persons (“staff”) to perform its functions
from time to time; and
(b) may do so in any way it considers
appropriate, including without limitation –
(i) by appointing employees,
(ii) by appointing agents, on the terms
that it thinks fit as to the remuneration and expenses of those agents,
(iii) by establishing panels
of self-employed persons who may be contracted on particular occasions, and
(iv) by contracting or otherwise arranging with another
person to provide staff on any basis.
(4) The OFSO may not enter into or offer to
enter into a contract of employment with a person who was a board member
immediately before that contract is entered into or offered.
(5) In respect of its employees the OFSO may, as
it thinks fit –
(a) determine terms as to remuneration,
expenses, pensions and other conditions of service; and
(b) establish and maintain schemes, or make any
other arrangements, for the payment of pensions and other benefits.
5 Designation
of Ombudsmen
(1) The
board of the OFSO must –
(a) secure
that, among its staff, there is a sufficient number of persons who appear to the
Principal Ombudsman to have the appropriate qualifications and experience to perform
the functions of an Ombudsman under this Law; and
(b) designate
those staff members as Ombudsmen for the purpose of this Law.
(2) The
appointment of a person who is designated as an Ombudsman is to be on such
terms (including terms as to the duration and termination of his or her designation
and as to remuneration) as the board considers –
(a) promote
the independence of the Ombudsman; and
(b) are
otherwise appropriate.
6 Arrangements
with Guernsey and adaptation to European standards
(1) Paragraph (2)
applies if an arrangement is entered into by the Minister, after consulting the
OFSO, with the States of Guernsey for any or all of the following –
(a) sharing
resources or staff for the purposes of any function under this Law and of any
similar function under a corresponding Ombudsman scheme in Guernsey;
(b) aligning
any aspect of the procedures, policies, eligibility criteria or other elements
of the Ombudsman schemes of the jurisdictions;
(c) any
other form of cooperation between the separate Ombudsman schemes of the
jurisdictions; and
(d) combining
the Ombudsman schemes of the jurisdictions into a single scheme similar to the
scheme under this Law.
(2) The
States may by Regulations make such provision as they consider necessary or expedient
to give effect to that arrangement, and that provision may, without limitation,
include –
(a) provision
for conferring functions on the OFSO in relation to the Guernsey scheme, or for
transferring functions of the OFSO to the corresponding body under the Guernsey
scheme;
(b) provision
for uniting the finances of the schemes, or for allocating between the
jurisdictions the expenses of the schemes or the powers to raise income for the
schemes;
(c) provision
for transferring, wholly or partly, the employment of any employee of OFSO
(including the Principal Ombudsman) to the corresponding body under the
Guernsey scheme, or for reducing the hours and pay of such an employee when
that employee is to be offered similar work under the Guernsey scheme;
(d) provision
for sharing of information between the schemes of each jurisdiction; and
(e) provision
made by amendment of any provision of this Law except this Article and Parts 5
and 6.
(3) In
the case of an arrangement described in paragraph (1)(d), Regulations
under paragraph (2) may, without limitation, include –
(a) provision
for merging the OFSO with the corresponding body under the Guernsey scheme;
(b) provision
for transferring all of the functions of the OFSO to the corresponding body
under the Guernsey scheme, and for abolishing the OFSO following the transfer.
(4) Nothing
in paragraph (2) or (3) is to be read as –
(a) requiring
provision to be made by way of Regulations under this Article, if that provision
can instead be made –
(i) by an arrangement
described in paragraph (1) without any enactment,
(ii) by Regulations or
an Order under any other provision of this Law, or
(iii) by any other means;
(b) preventing –
(i) a board member,
an Ombudsman, or any or all of the other staff of the OFSO, from accepting
appointment to a corresponding position under the Guernsey scheme, or
(ii) a person
appointed to any position under the Guernsey scheme from being appointed to a
corresponding position under this Law; or
(c) limiting
the terms on which any appointment of such a person may be made.
(5) The
States may by Regulations make such amendment to this Law as they consider
expedient to give effect, in relation to this Law, to any provision of –
(a) Regulation (EU) No. 524/2013 of
the European Parliament and of the Council of 21 May 2013 on online
dispute resolution for consumer disputes (OJ L 165/1, 18.6.2013)[2];
(b) Directive 2013/11/EU of the European
Parliament and of the Council of 21 May 2013 on alternative dispute
resolution for consumer disputes (OJ L 165/63, 18.6.2013)[3];
(c) Directive 2008/52/EC of the European
Parliament and of the Council of 21 May 2008 on certain aspects of
mediation in civil and commercial matters (OJ L 136/3, 24.5.2008)[4];
(d) Commission Recommendation 98/257/EC of 30 March 1998
on the principles applicable to the bodies responsible for out-of-court settlement
of consumer disputes (OJ L 115/31, 17.4.1998)[5];
(e) Commission Recommendation 2001/310/EC
of 4 April 2001 on the principles for out-of-court bodies involved in
the consensual resolution of consumer disputes (OJ L 109/56, 19.4.2001)[6];
(f) any other Community instrument, within
the meaning of the European Communities (Jersey) Law 1973[7], appearing to the States to be relevant to the functions of the
OFSO.
(6) This Article is without prejudice to any
other power to amend this Law –
(a) under any other provision of this Law,
including Article 12(8); or
(b) under Article 2 of the European
Communities Legislation (Implementation) (Jersey) Law 1996[8].
Part
3
Referral of Complaints to OFSO
7 Eligible
complaint
A complaint may be referred to the OFSO if –
(a) the
person (“the complainant”) making the complaint, or on whose behalf
the complaint is made, is an eligible complainant;
(b) the
complaint relates to an act by another person, being an act that occurred in
the course of relevant financial services business carried on, in or from
within Jersey, by that other person; and
(c) the
timing conditions, set out in Article 11, are satisfied.
8 Eligible
complainant
(1) In
this Article –
“relevant act”, in relation to a complainant, means the
act that is the subject of the complainant’s complaint;
“relevant business” means the relevant financial
services business in the course of which the relevant act occurred;
“relevant provider” means the person whose act was the
relevant act (being the person carrying on the relevant business at the time of
that act, whether or not that person is or was a financial services provider at
any other time).
(2) A
complainant is eligible if the complainant –
(a) was,
at the time of the relevant act, a person falling within any of the categories
described in paragraph (3);
(b) is
not, and was not at the time of the relevant act, a financial service provider;
and
(c) at
the time of the relevant act, had the relationship required by paragraph (6)
to the relevant provider in respect of the relevant act.
(3) The
categories referred to in paragraph (2)(a) are –
(a) an
individual who, in relation to the relevant provider and the relevant act, is
acting for purposes other than his or her trade, business or profession;
(b) a
microenterprise, within the meaning of Commission Recommendation 2003/361/EC of
6 May 2003 concerning the definition of micro, small and medium-sized
enterprises (OJ L 124/36, 20.5.2003)[9], as amended from time to
time;
(c) any
other category that –
(i) relates to
charities, trusts, foundations or other bodies,
(ii) appears to the
Minister to be appropriate for this purpose, subject to paragraph (5), and
(iii) is specified for this
purpose by the Minister by Order on the recommendation of the OFSO.
(4) The
Minister may by Order, on the recommendation of the OFSO, amend paragraph (3)(a)
or (b) to exclude any description of individual or microenterprise
appearing to the Minister to be likely to have resources, expertise or other
characteristics rendering it reasonable to expect that description of
individual or microenterprise to use other means than the OFSO to resolve
complaints.
(5) In
making an Order under paragraph (3)(c) the Minister must take particular
account of –
(a) the
desirability of ensuring that the services of the OFSO are primarily available
to persons appearing to the Minister to be likely to lack resources, expertise
or other characteristics that would render it reasonable to expect those
persons to use other means than the OFSO to resolve complaints;
(b) if
there is an arrangement described in Article 6(1), the desirability of
aligning the scheme under this Law with the corresponding Guernsey scheme.
(6) The
required relationship for the purpose of paragraph (2)(c) is –
(a) as
a client of the relevant provider, being a person –
(i) with whom the
relevant provider transacts or has transacted relevant financial services
business, or
(ii) to whom the
relevant provider gives or has given advice about such business;
(b) as
a person attempting to become a client of the relevant provider; or
(c) any
other relationship, appearing to the person examining the complaint under Article 12(1)(a)
to be sufficiently close to give appropriate standing for the services of the
OFSO to be available to the complainant, taking account of the guidelines
published under paragraph (14).
(7) The
Principal Ombudsman must determine, and keep under review, guidelines for use under
paragraph (6)(c) by persons examining complaints under Article 12(1)(a).
(8) The
guidelines may make provision in respect of any relationship that a complainant
might have to the relevant provider in respect of the relevant act, but must include
provision in respect of a relationship that a complainant has –
(a) as
a participant, or a person on whose behalf another person is a participant, in a
collective investment fund in respect of which the relevant provider carries on
the relevant business;
(b) as
a person to or in respect of whom benefits are to be provided under a pension
scheme in respect of which the relevant provider carries on the relevant
business;
(c) as
a person for whose benefit a contract of insurance was taken out or was
intended to be taken out, or who has a right to benefit from a claim under a
contract of insurance, being a contract in respect of which the relevant
provider carries on the relevant business;
(d) as
a person who relies in the course of business on a cheque guarantee card issued
by the relevant provider by way of the relevant business;
(e) as
the true owner, or person entitled to immediate possession, of a cheque or
other instrument to which Article 5 of the Cheques (Jersey) Law 1957[10] applies, or of the funds it
represents, collected by way of the relevant business by the relevant provider for
the account of another person;
(f) as
a person who receives a banker’s reference given by the relevant provider
by way of the relevant business;
(g) as
a person who gives the relevant provider a guarantee or security in relation to
any credit provided by that provider by way of relevant business falling within
Article 9(1)(i);
(h) as
a person in relation to whose financial standing the relevant provider holds
information by way of by way of relevant business falling within Article 9(1)(i);
(i) as
a person who attempts to enter a relationship falling within any of
sub-paragraphs (a) to (h);
(j) as
a person against whom the relevant provider takes, or attempts to take, steps
the taking of which constitute relevant business falling within Article 9(1)(i).
(9) The
provision that may be made in the guidelines includes provision that a
relationship (whether or not one of the relationships mentioned in paragraph (8)) –
(a) is
generally to be treated as sufficiently close to justify eligibility;
(b) is
generally to be treated as not being sufficiently close to justify eligibility;
or
(c) is
to be assessed taking into account factors specified in the guidelines.
(10) The
Minister may by Order, after consulting the OFSO and the persons mentioned in paragraph (13)(a)
to (d) –
(a) amend
any of paragraphs (8)(a) to (j) or add further sub-paragraphs to
paragraph (8);
(b) make
such provision as is mentioned in paragraph (9) in relation to a relationship
mentioned in paragraph (8).
(11) Before
making a recommendation to the Minister under paragraph (3)(c)(iii) or (4)
the OFSO must consult –
(a) such
persons as the Minister may specify by notice to the OFSO; and
(b) any
other person appearing to the OFSO to be appropriate.
(12) Before determining
any new guideline or any substantial amendment to a guideline, the Principal
Ombudsman must consult –
(a) the
Minister;
(b) such
persons as the Minister may specify by notice to the OFSO;
(c) any
other persons appearing to the Principal Ombudsman to be appropriate.
(13) The
Minister must specify, for the purposes of paragraphs (11)(a)
and (12)(b) –
(a) if
there is an arrangement described in Article 6(1), the person appearing to
the Minister to be appropriate in relation to the corresponding Guernsey scheme;
(b) any
body appearing to the Minister to be representative of the interests of all or
any of the persons who may be eligible complainants as a result of the proposed
Order or guideline;
(c) any
body appearing to the Minister to be representative of the interests of all or
any of any persons who are more likely to be respondents as a result of the
proposed Order or guideline; and
(d) any
other persons appearing to the Minister to be appropriate.
(14) The OFSO
must publish the guidelines, specifying a date after the publication on which
any new or amended guideline is to come into effect.
(15) In
carrying out their functions under paragraphs (6)(c) and (7), the
person examining a complaint under Article 12(1)(a) and the Principal
Ombudsman must take particular account –
(a) of the
principle that the services of the OFSO should be available for complaints
where the relationship is sufficiently close, or of such a nature, as to mean –
(i) that acts of the relevant
provider are likely to have effects on the interests of persons having that
relationship to the relevant provider, and
(ii) that it is fair
and reasonable to expect the relevant provider to accept responsibility for the
effect of those acts on those interests; and
(b) if
there is an arrangement described in Article 6(1), of the desirability of
aligning the scheme under this Law with the corresponding Guernsey scheme.
(16) It
is irrelevant for the purposes of this Article whether the complainant has any
or no connection with Jersey (other than through the required relationship in
respect of the relevant business that was carried on, as required by Article 7(b),
in or from within Jersey).
9 Relevant
financial services business
(1) Relevant
financial services business is business, other than business exempted under paragraph (4),
that is any one or more of the following –
(a) financial
service business within the meaning of the Financial Services (Jersey) Law 1998[11];
(b) the
business of an AIF, of an AIFM or of a service provider, as each of those terms
is defined by the Alternative Investment Funds (Jersey) Regulations 2012[12];
(c) deposit-taking
business within the meaning of the Banking Business (Jersey) Law 1991[13];
(d) the
business of a collective investment fund, within the meaning of the Collective
Investment Funds (Jersey) Law 1988[14], or of a functionary within
the meaning of that Law;
(e) insurance
business for the purposes of the Insurance Business (Jersey) Law 1996[15];
(f) business
that would fall within any of sub-paragraphs (a) to (e) but for an
exemption or exclusion conferred by or under any of the Laws or Regulations mentioned
in those sub-paragraphs;
(g) business
that –
(i) falls within paragraph 7
of Part B of Schedule 2 to the Proceeds of Crime (Jersey) Law 1999[16], and
(ii) is specified Schedule 2
business, within the meaning of the Proceeds of Crime (Supervisory Bodies)
(Jersey) Law 2008[17], in respect of which Article 10
of that Law requires the person carrying on the business to be a registered
person within the meaning of that Law;
(h) relevant
pension business, within the meaning of Schedule 3;
(i) relevant
credit business, within the meaning of Schedule 4; or
(j) relevant
ancillary business, within the meaning of paragraph (2).
(2) Relevant
ancillary business is business ancillary to any other business falling within
any of paragraphs (1)(a) to (i) (the “main business”), if –
(a) the
main business is carried on in relation to the complainant by the same person
as the ancillary business; or
(b) the
ancillary business consists of –
(i) introducing,
directly or by one or more intermediaries, persons who seek services, the
provision of which constitutes the main business, to other persons who carry on
that business, or
(ii) giving advice
with a view to making such introductions.
(3) Business
that may be ancillary for the purpose of paragraph (2) includes, without
limitation –
(a) current
account services;
(b) the
provision and operation of automated teller machines;
(c) financial
advice about the main business;
(d) designing
or establishing financial schemes or arrangements that require the provision of
a service by way of the main business.
(4) The
Minister must by Order exempt classes of business, to the extent that they
would otherwise be relevant financial services business, in relation to which
the Minister considers that it is not appropriate for the services of the OFSO
to be available.
(5) In making
an Order under paragraph (4) the Minister must take particular account of –
(a) the
matters described in Article 8(5); and
(b) any
likely impact on respondents carrying on any class of business that may be
carried on without being registered, or holding a permit or certificate, under
any of the Laws or Regulations mentioned in paragraphs (1)(a) to (e).
(6) Before
exercising the power under paragraph (4) the Minister must
consult –
(a) the
OFSO;
(b) the
Commission;
(c) if
there is an arrangement described in Article 6(1), the person appearing to
the Minister to be responsible for the corresponding scheme in Guernsey;
(d) any
body that the Minister believes is representative of the interests of all or
any of those who would be affected by the proposed Order; and
(e) such
other persons as appear to the Minister to be appropriate.
10 Respondents
(1) In this Article “relevant
provider” and “relevant act” have the meanings given by Article 8(1).
(2) A complaint may be entertained by the OFSO
against any one or more of –
(a) the relevant provider (irrespective of
whether that person is still a financial service provider when the complaint is
referred to the OFSO);
(b) another person who, when the complaint is
referred to the OFSO –
(i) has any liability in relation to the
relevant act, being a liability that was transferred, after the commencement of
this Part, to the person from the relevant provider, and
(ii) is carrying on relevant financial
services business (whether or not the same business as that to which the
complaint relates) in or from within Jersey; and
(c) a person, not falling within
sub-paragraph (a) or (b), who is designated under paragraph (3).
(3) An Ombudsman may, by notice in writing given
to a person, designate that person (the “successor”) as a
respondent in relation to a complaint referred to the OFSO, whether in addition
to or in substitution for a person falling within paragraph (2)(a) or (b),
if –
(a) any business, asset or liability (in
relation to the relevant act or to any other matter) of the relevant provider was
transferred, after the commencement of this Part and before the complaint is
referred to the OFSO, to the successor from the relevant provider;
(b) the
relevant provider no longer exists when the complaint is referred to the OFSO,
or in the opinion of the Ombudsman substantial prejudice is likely to be caused
to the complainant if the relevant provider is treated as the only respondent;
(c) when the complaint is referred to the OFSO,
the successor is carrying on relevant financial services business (irrespective
of where it is carried on and whether it is the same business as that to which
the complaint relates); and
(d) in the opinion of the Ombudsman, after
inviting and considering objections from the successor, it is fair and
reasonable in all the circumstances of the case to treat the successor as
answerable for the relevant act in any respect (and whether jointly with any
other person or otherwise).
(4) For the purposes of paragraphs (2)(b)(i)
and (3)(a) the transfer –
(a) may be direct, or through any other person
or persons and through any number of transactions; and
(b) may be by agreement of the relevant provider
(with the successor or any other person), by operation of law, as part of the
winding up of the relevant provider, or in any other manner.
11 Timing conditions
(1) The
timing conditions are that –
(a) the
act to which the complaint relates occurred on or after 1st January 2010;
(b) the
complaint is not referred to the OFSO before the complainant has, in the
opinion of an Ombudsman, given the respondent a reasonable opportunity to deal
with it; and
(c) the
complaint is referred to the OFSO on or before the expiry of the relevant
time-limit, as determined under paragraphs (4) to (8).
(2) For
the purpose of paragraph (1)(b), the Ombudsman must consider all the
relevant circumstances (including any relevant direction, code of practice,
guidance, or other rule or standard, issued by or on behalf of the Commission),
but must not treat a reasonable opportunity as extending beyond –
(a) 3 months
after the date on which, in the opinion of the Ombudsman, the respondent first
had sufficient information to be able to start to investigate the complaint; or
(b) if
sooner, the date on which the respondent notifies the complainant that the
respondent will take no further action on the complaint for any reason.
(3) An
Ombudsman may treat the timing condition in paragraph (1)(b) as satisfied
if, in the opinion of the Ombudsman, there is some exceptional reason
justifying the investigation of the complaint by the OFSO without the
respondent having a reasonable opportunity to deal with it.
(4) For
the purpose of paragraph (1)(c) the relevant time-limit is –
(a) if
the abbreviated time-limit applies, that time-limit;
(b) if
the abbreviated time-limit does not apply, the general time-limit.
(5) The
general time-limit is the period ending whichever is the later of –
(a) 6 years
after the act to which the complaint relates; and
(b) 2 years
after the complainant could reasonably have been expected to become aware that
he or she had a reason to complain in relation to the act complained of.
(6) The
abbreviated time-limit –
(a) is
the period ending 6 months after the first day on which all of the internal
procedure conditions are met; and
(b) applies
if –
(i) all of the internal
procedure conditions are met, and
(ii) the general
time-limit has not expired when the abbreviated time-limit expires.
(7) The
internal procedure conditions are –
(a) that
the respondent has established a procedure for handling complaints in relation
to the relevant financial services business to which the complaint relates;
(b) that
the procedure conforms to a model procedure published by the OFSO, or otherwise
requires the respondent to investigate the complaint, to attempt to resolve it
and to notify the complainant of the result;
(c) that
the respondent notifies the complainant in writing that the respondent has
applied the procedure to the complaint and regards the procedure as exhausted;
(d) that
that notification is given within 3 months after the date on which, in the
opinion of the Ombudsman, the respondent first had sufficient information to be
able to start to investigate the complaint; and
(e) that
the respondent, on notifying the complainant under sub-paragraph (c),
informs or reminds the complainant in writing –
(i) of the
complainant’s right to refer the complaint to the OFSO, giving details of
a means by which the OFSO may be contacted,
(ii) of the effect of
the abbreviated time-limit, specifying the date on which it expires, and
(iii) if the respondent has
reason to believe that the general time-limit may expire before the abbreviated
time-limit, of the need for the complainant to check the general time-limit.
(8) An
Ombudsman may –
(a) treat
the general or abbreviated time-limit as suspended during any period throughout
which, in the opinion of the Ombudsman, the complainant could not reasonably be
expected to pursue the complaint for any reason relating –
(i) the complainant
being a minor,
(ii) the
complainant’s lack of mental capacity,
(iii) some other impediment
affecting the complainant and justifying the suspension in all the
circumstances;
(b) treat
the timing condition in paragraph (1)(c) as satisfied if, in the opinion
of the Ombudsman, there is some other exceptional reason justifying the
investigation of the complaint by the OFSO despite the expiry of the relevant
time-limit.
(9) The
Minister may, on the recommendation of the OFSO, by Order –
(a) amend
paragraph (6)(a) to extend or reduce the period of the abbreviated
time-limit;
(b) amend
the internal procedure conditions in paragraph (7).
Part 4
Handling of Complaints by OFSO
12 Initial
handling of complaints referred
(1) When
a complaint is referred to the OFSO, the OFSO must –
(a) examine
whether the complaint is one which may be so referred under Part 3; and
(b) if
it is not, reject it.
(2) If
the complaint is one that may be referred to the OFSO, the OFSO may –
(a) examine
whether there are compelling reasons why it is inappropriate for the complaint
to be dealt with by the OFSO; and
(b) if there
are, reject it.
(3) Without
prejudice to the generality of paragraph (2)(a), the reasons referred to
in that sub-paragraph include (subject to whether the reason is compelling in
the particular case) that –
(a) the
complaint has no real prospect of success, such as where –
(i) the complaint is
frivolous or vexatious,
(ii) the complainant
has not suffered, and is unlikely to suffer, compensatable loss, within the
meaning of Article 16(3), or
(iii) the complaint is
evidently misconceived even on the complainant’s version of the facts;
(b) the
subject matter of the complaint has already been appropriately dealt with, such
as where –
(i) the respondent
has already made an offer of compensation, or of a goodwill payment, that is still
open for acceptance and is fair and reasonable in relation to the circumstances
alleged by the complainant,
(ii) the subject
matter of the complaint has previously been considered or rejected by the OFSO,
and the complainant presents no evidence that is likely to affect the outcome
and was unavailable to the complainant at the time of the previous
consideration or rejection,
(iii) the subject matter of
the complaint has been the subject of legal proceedings in which a final
decision has been made, or
(iv) the subject matter of
the complaint has been finally dealt with by an independent complaints scheme
or dispute-resolution process that is comparable to the OFSO;
(c) there
is a more appropriate forum available than the OFSO, such as where –
(i) the subject
matter of the complaint is the subject of current legal proceedings, and those
proceedings are not stayed for the purpose of enabling the matter to be referred
to the OFSO,
(ii) the subject
matter of the complaint is being dealt with by an independent complaints scheme
or dispute-resolution process that is comparable to the OFSO,
(iii) the complaint cannot be
determined without deciding on a significant doubtful point of law, and the
need for resolution of that point by a court outweighs the benefits of the OFSO
procedure, or
(iv) it would be more appropriate
for the subject matter of the complaint to be dealt with by an arbitration
scheme, or another complaints scheme or dispute-resolution process, that is
comparable to the OFSO and to which the complainant can reasonably be expected
to resort;
(d) the
subject matter of the complaint is inappropriate for the OFSO, such as where
the complaint is about –
(i) employment
matters, where the complainant is an employee or former employee of a
respondent,
(ii) investment
performance, as opposed to negligent selection or management of investments,
(iii) the legitimate exercise
of the respondent’s commercial judgement, or
(iv) a decision by the
respondent exercising a discretion under a will or trust, including any failure
to consult the complainant before exercising such a discretion in a case where
there is no legal obligation to consult; or
(e) it
would be inappropriate to deal with the complaint in the circumstances, such as
in the absence of consent from another potential complainant whose interests
would be unreasonably prejudiced by proceeding without his or her consent.
(4) Rejection
under paragraph (1)(b) or (2)(b) is to be by notice in writing to the
complainant and respondent, setting out the reasons for the rejection and any
provision for review.
(5) Nothing
in this Article prevents an Ombudsman determining a complaint in the
respondent’s favour on grounds for which the complaint could have been
rejected under this Article.
(6) The
functions under paragraphs (1) to (4) must be delegated to an Ombudsman,
or to another member of the OFSO’s staff, and must not be carried out by
the board, a member of the board, a committee or a member of such a committee.
(7) The
OFSO must publish its policy on –
(a) the
factors that will be considered in deciding whether to reject complaints under
this Article;
(b) the
delegation of functions under paragraphs (1) to (4); and
(c) its
arrangements for review of decisions to reject a complaint, if such a decision
is delegated to a person other than an Ombudsman.
(8) The
Minister may by Order, on the recommendation of the OFSO, amend any or all of paragraphs (2)(a)
and (3)(a) to (e) to limit the reasons for which a complaint may be
rejected, if it appears expedient to do so in order to align those reasons with
any equivalent reasons in the law of any other jurisdiction or with any
European or international standard relevant to Ombudsman schemes.
13 Complaint
to be handled as Ombudsman sees fit
(1) If
a complaint is not rejected under Article 12, the Principal Ombudsman must
secure that it is allocated to an Ombudsman to supervise the investigation of
the complaint with a view to mediation, referral, determination or resolution
by any other means.
(2) The
Ombudsman to whom the complaint is allocated must –
(a) handle
the complaint in such manner as he or she considers most appropriate for the
clarification of the issues and generally for the just handling of the
complaint; and
(b) have
regard to the primary function of the OFSO under Article 3(1), and in
particular, so far as it appears to the Ombudsman appropriate to do so, seek to
avoid –
(i) formality in
handling the complaint, and
(ii) any need for
legal representation for either party.
(3) Subject
to paragraphs (2) and (5), the Ombudsman may handle the complaint as he or
she sees fit.
(4) Without
prejudice to the generality of paragraph (3), the Ombudsman –
(a) may
make such enquiries of the complainant and respondent and of any other person
as he or she considers appropriate;
(b) is
not bound by any enactment or rule of law relating to the admissibility of
evidence in proceedings before courts;
(c) may
consider all or any part of the complaint in public or in private and with or
without a hearing;
(d) may
at any stage indicate a provisional view on any issue and invite comment from
both parties on that view;
(e) may
invite comment from both parties on a preliminary draft of the determination,
or may issue a determination without such a prior invitation, if the Ombudsman
is satisfied that it is not necessary in the circumstances.
(5) The
Ombudsman must not take account of evidence in determining a complaint unless –
(a) both
parties have had an opportunity to see and comment on the evidence; or
(b) the
evidence has been disclosed to the respondent and not to the complainant, but
the Ombudsman is satisfied in the exceptional circumstances of the case –
(i) that a fair
determination cannot be made without taking account of that evidence, and
(ii) that it is
necessary not to disclose that evidence to the complainant, in order to preserve
the confidentiality of information revealed by that evidence.
(6) The
complainant and the respondent must assist the Ombudsman in the discharge of
the Ombudsman’s duties under paragraph (2).
14 Allocation
of functions in relation to handling of complaints
(1) Only
an Ombudsman may make a determination of a complaint.
(2) The
Ombudsman to whom the complaint is allocated may authorize any other of the
OFSO’s staff (not being a board member or committee member), to perform
any other function in relation to a complaint, including but not limited to –
(a) investigation
of the complaint;
(b) mediation
of the complaint;
(c) taking
a provisional view of an issue and inviting comment, as described in Article 13(4)(d).
(3) A
person performing a function described in paragraph (1) or (2) in
relation to a complaint is entitled to do so free from any interference from
any other person, except the Ombudsman to whom the complaint is allocated or a
person (other than a board member or committee member) who acts at the
direction of that Ombudsman.
15 Determination
(1) An
Ombudsman, when determining a complaint, must do so by reference to what is, in
the opinion of the Ombudsman, fair and reasonable in all the circumstances of
the case.
(2) Without
prejudice to the generality of paragraph (1), the Ombudsman, must take
into particular account –
(a) the
relevant law;
(b) any
relevant direction, code of practice, guidance, or other rule or standard,
issued by or on behalf of the Commission;
(c) any
similar instrument issued by any other body if the Ombudsman considers it
relevant to the complaint; and
(d) what
the Ombudsman considers to have been relevant good industry practice at the
time of the act to which the complaint relates.
16 Awards
and directions
(1) If
a complaint is determined in favour of the complainant, the determination may
include –
(a) an
award against the respondent of payment, in money or money’s worth, of
such amount (“a money award”) as the Ombudsman considers –
(i) to represent compensation
for compensatable loss as defined in paragraph (3), and
(ii) to be fair and
reasonable in all the circumstances of the case;
(b) a
direction that the respondent take such steps in relation to the complainant as
the Ombudsman considers to be fair and reasonable in all the circumstances of
the case.
(2) For
the purposes of a money award or a direction under paragraph (1) the
Ombudsman –
(a) may
include an amount or step even if a court could not order that amount to be paid
or that step to be taken; and
(b) may
seek –
(i) to put the
complainant into the position that he, she or it would have been in but for the
matter complained of,
(ii) to put the
complainant into the position that he, she or it would have been in if the
respondent had carried on its business fairly and reasonably in relation to the
matter complained of, or
(iii) to achieve any other
result appearing fair and reasonable to the Ombudsman in all the circumstances
of the case.
(3) Compensatable
loss is –
(a) financial
loss;
(b) material
distress or material inconvenience; or
(c) any
other loss or damage of a kind specified by the Minister by Order,
suffered by the complainant as a result of the act complained of.
(4) The
Minister may by Order specify a maximum amount that may be included in a money
award in respect of compensatable loss under paragraph (3)(b) or (c).
(5) The
steps that may be included in a direction under paragraph (1)(b) do not
include –
(a) the
payment of money or money’s worth; or
(b) any
step the effect of which is to give the complainant a benefit that has a
monetary value to the complainant that, if it had formed part of a money award,
would have resulted in a contravention of paragraph (7).
(6) If
the Ombudsman is satisfied that a respondent has failed to comply with a
direction under paragraph (1)(b), the Ombudsman may add to the
determination a money award in respect of that failure.
(7) The
total money award in respect of a complaint may not exceed the monetary limit,
being £150,000 or such other amount as may be specified by the Minister
by Order.
(8) If
the Ombudsman considers that fair compensation requires payment of an amount
exceeding the monetary limit, the Ombudsman may recommend that the respondent pay
the complainant the balance.
(9) A
money award –
(a) may
provide for the amount payable under the award to bear interest at a rate and
as from a date specified in the award (but not so as to take the total over the
limit in paragraph (7) on or before the time when the determination
becomes binding); and
(b) is
recoverable by the complainant as a debt due from the respondent.
(10) The OFSO
may assist or act on behalf of the complainant in recovering an award under paragraph (9)(b),
if –
(a) the
complainant requests the OFSO to do so, or appears unable so to request and
unable to enforce the award otherwise; and
(b) it
appears to an Ombudsman to be necessary to do so in order to maintain respect among
potential respondents for determinations under this Law.
(11) A
determination may include provision that any copy of the determination
disclosed by any person (and in any manner, including indirectly) to any person
other than the complainant or the respondent must be redacted –
(a) to
exclude the identity of the complainant or any information from which that
identity can be ascertained; and
(b) exceptionally,
to exclude any other information that the Ombudsman considers should be
private.
(12) The
Ombudsman must –
(a) before
making a determination, inform the complainant of the effect of paragraph (11)(a);
and
(b) include
in the determination a provision under paragraph (11)(a) if the
complainant so requests.
17 Costs
(1) An
Ombudsman may, on determining a complaint, award costs –
(a) against
the respondent in favour of the complainant;
(b) against
the respondent in favour of the OFSO.
(2) Costs
must not be awarded unless, in the opinion of the Ombudsman –
(a) the
payer was responsible, through improper or unreasonable conduct or unreasonable
delay, for causing additional resources to be deployed, or expenses to be
incurred, by the payee in dealing with the complaint; and
(b) the
costs represent a reasonable contribution to those resources deployed, or
expenses incurred.
(3) For
the purpose of paragraph (2) the payer is the person against whom the
costs are awarded, and the payee is the person in whose favour they are
awarded.
(4) An
Ombudsman making an award of costs may order that the amount payable under the
award bears interest at a rate and as from a date specified in the
determination.
(5) An
amount due under an award of costs is recoverable as a debt due to the person in
whose favour the award was made.
18 Notification
and finality of determinations
(1) Within
a reasonable time after determining a complaint the Ombudsman must give a
written statement of the determination to the respondent and to the
complainant.
(2) The
statement must –
(a) give
the Ombudsman’s reasons for the determination;
(b) require
the complainant to notify the Ombudsman, on or before a date specified in the
statement and by a means so specified, if the complainant accepts the
determination; and
(c) explain
the effect of paragraphs (3) to (7).
(3) If
the complainant notifies acceptance in accordance with paragraph (2)(b),
the determination binds the respondent and the complainant.
(4) If paragraph (3)
does not apply, the determination is not binding.
(5) After
the date specified under paragraph (2)(b), a determination that is not
binding nevertheless becomes binding if –
(a) the
complainant has not notified the Ombudsman that the complainant rejects the
determination;
(b) the
complainant notifies the Ombudsman that the complainant wishes to accept the
determination and gives details of compelling reasons why the complainant could
not reasonably have been expected to notify in time; and
(c) the
Ombudsman, after inviting representations from the respondent, is satisfied
that those reasons are compelling and that it would be unjust not to allow the
complainant to accept the determination out of time.
(6) No
appeal lies against a binding determination.
(7) Neither
the complainant nor the respondent may institute or continue legal proceedings
in respect of a matter which was the subject of the complaint, after a
determination of the complaint becomes binding.
(8) The
Ombudsman must notify the respondent and the complainant of each of the
following events, as the case may be –
(a) when
a determination becomes binding under paragraph (3);
(b) when
a date specified under paragraph (2)(b) passes without the determination
becoming binding; and
(c) when
a determination becomes binding, or remains not binding, following a decision
of the Ombudsman under paragraph (5)(c).
(9) A
copy of a determination on which appears a certificate signed by an Ombudsman,
stating that the determination has become binding, is evidence that the
determination has become binding.
(10) Such a
certificate purporting to be signed by an Ombudsman is to be taken to have been
duly signed unless the contrary is shown.
Part 5
Information
19 Powers
to obtain documents and information
(1) In
this Article –
“party” means the complainant or the respondent in a
complaint;
“document” includes a document within the meaning of the
Electronic Communications (Jersey) Law 2000[18] and an electronic record
within the meaning of that Law.
(2) The
Ombudsman may, by notice in writing given to a party to a complaint, require
that party to produce a document that –
(a) is
specified in the notice, or is of a description so specified; and
(b) appears
to the Ombudsman to be likely to be necessary or useful for the investigation
or determination of the complaint.
(3) The
party must produce the document before the end of such reasonable period as is
specified in the notice.
(4) A
respondent who, without reasonable excuse, contravenes paragraph (3) is
guilty of an offence and liable to a fine.
(5) If
a party contravenes paragraph (3), the Ombudsman may require the party to
state, to the best of his or her knowledge and belief, where the document is.
(6) If
a document is produced in response to a requirement imposed under paragraph (2),
the Ombudsman may –
(a) retain
the document or take copies or extracts from it; and
(b) require
the person producing the document to provide an explanation of the document.
(7) If
a person claims a lien on a document, its production under this Article does
not affect the lien.
(8) A
person who requires, for the purpose of the person’s business, any
document retained under this Article, and who requests that document, must be
supplied with a copy as soon as practicable.
(9) The
Ombudsman may, by notice in writing given to a party to a complaint, require
that party to provide information that –
(a) is
specified in the notice, or is of a description so specified; and
(b) appears
to the Ombudsman to be likely to be necessary or useful for the investigation
or determination of the complaint.
(10) The
party must provide the information –
(a) before
the end of such reasonable period as may be specified in the notice; and
(b) in
such manner or form, if any, as may be specified in the notice.
(11) A
statement made by a person in response to a requirement under paragraph (6)(b)
or a notice under paragraph (9) may not be used by the prosecution in
evidence against the person in any criminal proceedings, except proceedings
under paragraph (15).
(12) The
Ombudsman may, relying wholly or partly on an inference drawn from any
contravention by a party of any requirement of or under this Article –
(a) determine
any issue in the complaint to which the information or document sought appears
to be relevant; or
(b) in
the case of a contravention by a complainant, reject the complaint.
(13) Paragraph (12)
applies irrespective of whether a contravention, by a respondent, amounts also to
an offence under paragraph (4).
(14) Nothing
in this Article requires the disclosure or production by a person to an
Ombudsman of information or documents that the person would in an action in
court be entitled to refuse to disclose or produce on the grounds of legal
professional privilege.
(15) A person
is guilty of an offence, and liable to imprisonment for a term of 2 years
and to a fine, if the person provides information to the OFSO, knowing that it
is false in a material particular and intending it to be used by the OFSO for
the purpose of any function under Part 4.
(16) For the
purpose of paragraph (15) it is irrelevant whether the information –
(a) is
contained in a document or not; or
(b) is provided
under this Article or not.
(17) No
proceedings for an offence under this Article may be instituted except by or
with the consent of the Attorney General.
20 Financial
Services Commission to provide information for levy
(1) The
OFSO may request the Commission to provide details that –
(a) are
required by the OFSO to enable it to calculate or raise a levy under paragraph 4
of Schedule 2 in relation to any year;
(b) are
held by the Commission; and
(c) relate
to persons who –
(i) are registered
with the Commission to carry on any relevant financial services business
falling within any of sub-paragraphs (a) to (e) of Article 9(1),
(ii) hold (or are
otherwise authorized by) a permit from the Commission to carry on any such
business, or
(iii) are registered persons,
within the meaning of the Proceeds of Crime (Supervisory Bodies) (Jersey) Law 2008[19], in relation to whom the
Commission is the relevant supervisory body for the purpose of that Law in
respect of any relevant financial services business falling within Article 9(1)(g)
of this Law.
(2) The
Commission –
(a) must
provide the details requested under paragraph (1) in a timely manner; and
(b) may
provide the details –
(i) along with other
information, if the resources required to separate the details would unduly
prejudice the performance of other functions of the Commission, and
(ii) in any format in
which the details are held, or in any format requested by the OFSO, at the
option of the Commission.
21 Restricted
information and permitted disclosure
(1) A
person who receives information (“restricted information”) relating
to the business or other affairs of any person –
(a) under
or for the purposes of Part 4, or for the purpose of calculating or raising
a case-fee or levy under paragraph 3 or 4 of Schedule 2; or
(b) directly
or indirectly from a person who has so received it,
is guilty of an offence and liable to imprisonment for a term of 2 years
and a fine if he or she discloses the information without the consent of the
person to whom it relates and (where sub-paragraph (b) applies) the person
from whom it was received.
(2) This
Article does not apply to information that –
(a) is
disclosed in the course of a public hearing held by an Ombudsman under Article 13;
(b) is
contained in or derived from a determination, unless the determination includes
provision prohibiting the disclosure of that information under Article 16(11);
(c) at
the time of the disclosure is or has already been made available to the public
from other sources; or
(d) is
disclosed in the form of a summary or collection of information so framed as
not to enable information relating to any particular person to be ascertained
from it.
(3) This
Article does not preclude the disclosure of information –
(a) for
the purpose of enabling or assisting the OFSO or any person acting on its
behalf to discharge any of its functions, other than its functions under Article 22;
(b) by
the OFSO or any person acting on its behalf –
(i) to the Viscount,
(ii) to the Comptroller
and Auditor General for the purpose of enabling or assisting the carrying out
of any of the Comptroller and Auditor General’s functions in relation to
the OFSO,
(iii) to the Commission, or
to any person acting on behalf of or appointed by or at the request of the
Commission, for the purpose of enabling or assisting the Commission or that
person to exercise any function of the Commission or any function for which the
person was so appointed, or
(iv) to any other person for
the purpose of enabling or assisting that person to exercise, in Jersey and in
relation to financial service providers, any function conferred on that person
by or under any enactment;
(c) with
a view to the investigation of a suspected offence, or with a view to the institution
of, or for the purposes of, any criminal proceedings (whether the offence or
proceedings are under this Law or otherwise);
(d) in
connection with any other proceedings arising out of this Law, or with any
proceedings conducted by or on behalf of the Commission under any of its
functions; or
(e) without
prejudice to the generality of sub-paragraph (a), by the OFSO to a body
appearing to the OFSO to be equivalent to the OFSO in another jurisdiction, if
it appears to the OFSO that disclosing the information would enable or assist
the OFSO to discharge its functions.
(4) The
States may by Regulations amend paragraphs (2) and (3) by –
(a) adding
further persons or bodies to or by whom disclosure may be made and specifying
in each case the purpose for which disclosure of information may be made;
(b) amending
the circumstances in which disclosure may be made to or by any person or body
specified in those paragraphs, including the purposes for which and conditions
in which such disclosure may be made.
(5) No
proceedings for an offence under this Article may be instituted except by or
with the consent of the Attorney General.
22 Provision of
general information by OFSO
(1) Without
prejudice to the generality of the functions of the OFSO under this Law, the OFSO
may in particular provide –
(a) information
and guidance about the OFSO and its procedures, intended for actual or
potential complainants or respondents or other users of the OFSO;
(b) information
and guidance about the OFSO’s experience of complaints, and what may be
learnt from that experience;
(c) information
about determinations made by Ombudsmen;
(d) information
to the Commission on general patterns in complaints indicating contraventions of
any requirement imposed or enforced by the Commission, or on other issues
relevant to the Commission’s functions;
(e) information
to any department of the States responsible for trading standards, or to any other
body with similar responsibility, on general patterns in complaints in relation
to financial service providers not regulated by the Commission.
(2) This
Article does not permit the disclosure of any information if that disclosure
constitutes an offence under Article 21.
Part 6
Miscellaneous and Final
23 Co-operation
between OFSO and Commission
(1) Without
prejudice to Article 20, the OFSO and the Commission must each take such
steps as it considers appropriate to co-operate with the other in the exercise
of their functions.
(2) The
OFSO and the Commission must prepare and maintain a memorandum describing how
they intend to comply with paragraph (1).
(3) The OFSO
must publish the memorandum, as in force from time to time, and ensure that an
electronic copy is freely available to the public.
24 Criminal
liability of directors and similar officers
(1) This
Article applies if an offence under this Law, committed by a limited liability
partnership, a separate liability partnership or a body corporate, is proved to
have been committed with the consent or connivance of, or to be attributable to
neglect on the part of –
(a) a
person who is a director, manager, secretary or other similar officer of the
body corporate, or a partner of the partnership; or
(b) a
person purporting to act in any such capacity.
(2) That
person –
(a) is
also guilty of the offence; and
(b) is
liable in the same manner as the body corporate or the partnership to the
penalty provided for the offence.
(3) If
the affairs of a body corporate are managed by its members, this Article
applies in relation to acts and defaults of a member in connection with the
member’s functions of management as if the member were a director of the
body corporate.
25 Consequential
and related amendments
(1) The
States may, by Regulations, amend any enactment other than this Law for the
purpose of making such transitional, consequential incidental, supplementary or
savings provisions as they consider necessary or expedient in respect of any
provision made by or under this Law.
(2) After
Article 31(5)(a) of the Data Protection (Jersey) Law 2005[20] there is inserted the
following sub-paragraph –
“(aa) any function conferred on the Office of
the Financial Services Ombudsman or on an Ombudsman, under the Financial
Services Ombudsman (Jersey) Law 2014[21];”.
(3) At
the end of Regulation 37 of the Alternative Investment Funds (Jersey) Regulations 2012[22] there is added the following
paragraph –
“(3) Without prejudice to the
generality of paragraph (1)(c), Regulation 35 does not preclude the
disclosure of information by the Commission to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[23] –
(a) to comply with a duty of the Commission
under Article 20 of that Law; or
(b) for the purpose of enabling or assisting
that Office or Ombudsman to exercise any function under that Law (including the
raising of a levy).”.
(4) At
the end of Article 44 of the Banking Business (Jersey) Law 1991[24] there is added the following
paragraph –
“(3) Without prejudice to the
generality of paragraph (1)(c), Article 42 does not preclude the
disclosure of information by the Commission to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[25] –
(a) to comply with a duty of the Commission
under Article 20 of that Law; or
(b) for the purpose of enabling or assisting
that Office or Ombudsman to exercise any function under that Law (including the
raising of a levy).”.
(5) At
the end of Article 28 of the Collective Investment Funds (Jersey) Law 1988[26] there is added the following
paragraph –
“(3) Without prejudice to the
generality of paragraph (1)(c), Article 26 does not preclude the
disclosure of information by the Commission to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[27] –
(a) to comply with a duty of the Commission
under Article 20 of that Law; or
(b) for the purpose of enabling or assisting
that Office or Ombudsman to exercise any function under that Law (including the
raising of a levy).”.
(6) In Article 38
of the Financial Services (Jersey) Law 1998[28], after paragraph (1)(a)
there is inserted the following sub-paragraph –
“(aa) without prejudice to the generality of
sub-paragraph (a)(iii), by the Commission to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[29] –
(i) to
comply with a duty of the Commission under Article 20 of that Law, or
(ii) for
the purpose of enabling or assisting that Office or Ombudsman to exercise any function
under that Law (including the raising of a levy);”.
(7) At
the end of Article 31 of the Insurance Business (Jersey) Law 1996[30] there is added the following
paragraph –
“(3) Without prejudice to the
generality of paragraph (1)(c), Article 29 does not preclude the
disclosure of information by the Commission to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[31] –
(a) to comply with a duty of the Commission
under Article 20 of that Law; or
(b) for the purpose of enabling or assisting
that Office or Ombudsman to exercise any function under that Law (including the
raising of a levy).”.
(8) At
the end of Article 36 of the Proceeds of Crime (Supervisory Bodies)
(Jersey) Law 2008[32] there is added the following
paragraph –
“(3) Without prejudice to the
generality of paragraph (1)(a), Article 35 does not preclude the
disclosure of information by a supervisory body to the Office of the Financial
Services Ombudsman or to an Ombudsman, within the meaning of the Financial
Services Ombudsman (Jersey) Law 2014[33] –
(a) where the supervisory body is the
Commission, to comply with a duty of the Commission under Article 20 of
that Law; or
(b) for the purpose of enabling or assisting
that Office or Ombudsman to exercise any function under that Law (including the
raising of a levy).”.
26 Orders
and Regulations
(1) An
Order or Regulations under this Law may contain such transitional,
consequential, incidental, supplementary or savings provisions, other than an
amendment of this Law, as appear to the Minister or the States (as the case may
be) to be necessary or expedient for the purposes of the Order or Regulations.
(2) A
power under this Law to amend, by Regulations, any provision of this Law
includes the power to make such transitional, consequential, incidental or
supplementary amendments to any other provision of this Law as appears to the
States to be necessary or expedient.
27 Citation
and commencement
(1) This
Law may be cited as the Financial Services Ombudsman (Jersey) Law 2014.
(2) Parts 1,
2 and 6 and Schedules 1 and 2 come into force on registration.
(3) Parts 3
to 5 and Schedules 3 and 4 come into force on such day or days as the
States may by Act appoint.
m.n. de la haye
Greffier of the States
SCHEDULE 1
(Article 2(3))
Constitution of OFSO
1 Appointment
of board members
(1) The
Minister must, by instrument in writing, appoint 2 board members (subject
to the minimum and maximum numbers under Article 2(2)) from among persons
nominated by the Chairman.
(2) The
Chairman, before nominating a member, and the Minister, before appointing a
member, must seek the views of the Appointments Commission established by Article 17
of the Employment of States of Jersey Employees (Jersey) Law 2005[34] on the appointment (without
prejudice to the powers of the States or the Appointments Commission under Article 15
of that Law).
(3) The
Minister must, at least 2 weeks before appointing a board member, present
to the States a notice of his or her intention to make the appointment.
(4) The
Chairman may nominate a person only if that person –
(a) is
not a member of the States; and
(b) has
applied to be appointed or re-appointed as a board member and has complied with
sub-paragraph (6) in respect of the application.
(5) An
Ombudsman, and any member of the OFSO’s staff, may not hold office as a
board member.
(6) In making
nominations and appointments, the Chairman and the Minister must –
(a) seek
to ensure that persons nominated or appointed are prepared in particular –
(i) to maintain the
independence of the OFSO as set out in Article 3(4) and paragraph 11
of this Schedule, and
(ii) to act in the
public interest, rather than as representatives of any particular interest;
(b) ensure
that the majority of the board members are not financial service providers or
persons whose business involves representing financial service providers; and
(c) have
regard to the desirability of securing that there is such a balance as the Chairman
or Minister considers appropriate (subject to clauses (a)(ii) and (b))
between –
(i) persons with
experience of working as or for financial service providers,
(ii) persons with
experience of using, other than as or for financial service providers, the
services of financial service providers,
(iii) persons with experience
of providing services similar to any of those provided by the OFSO, and
(iv) persons with experience
of the financial, legal and other aspects of management of bodies similar to
the OFSO.
(7) A person
(the “nominee”) must not be nominated unless he or she has provided –
(a) a
statement setting out the nominee’s interests, direct or indirect, in any
relevant financial services business, or in business carried on outside Jersey
that would be relevant financial services business if carried on in Jersey; and
(b) an
instrument authorizing the provision to the Minister of information as to
whether the person has been charged with, or convicted of, an offence –
(i) under customary
law or under any enactment, or
(ii) against any law
of a country or territory outside Jersey.
(8) The
Minister must, in the instrument appointing a board member, specify a period
for that appointment of not less than 3 years (subject to paragraph 4)
and not more than 5 years.
(9) A
person appointed as a board member holds and vacates office in accordance with
the terms of his or her appointment, subject to this Law.
(10) The
terms of appointment must be such as to secure the independence of board
members in the performance of their functions.
(11) The
rights and obligations of the OFSO, and the validity of the performance of its
functions, are not affected by –
(a) a
vacancy in the office of Chairman or board member; or
(b) a
defect in the appointment of a person as Chairman or as a member of the board.
2 Appointment
of Chairman and designation of Deputy Chairman
(1) The
Minister must appoint the Chairman of the board –
(a) in
the case of the first such appointment, and in any other case where there are
no board members, from among persons appearing to the Minister to be suitable
for the position (subject to paragraph 1(5)); and
(b) in
any other case, from among board members appearing to the Minister to be so
suitable.
(2) Before
appointing a Chairman, the Minister must seek the views of the Appointments
Commission established by Article 17 of the Employment of States of Jersey
Employees (Jersey) Law 2005 on the appointment (without prejudice to the
powers of the States or the Appointments Commission under Article 15 of
that Law).
(3) The
Minister must, at least 2 weeks before appointing a Chairman, present to
the States a notice of his or her intention to make the appointment.
(4) When
appointing a Chairman the Minister must determine the period of the
appointment, expiring before or on the same date as the person’s
appointment as a board member.
(5) A
person appointed as a Chairman holds and vacates office in accordance with the
terms of his or her appointment, subject to this Law.
(6) The
Minister may re-appoint a serving Chairman (and references in this paragraph to
appointment include re-appointment).
(7) The
Chairman must designate another board member as Deputy Chairman.
(8) When –
(a) the
Chairman is unable to act through incapacity or absence; or
(b) there
is a vacancy in the office of Chairman,
the Deputy Chairman must perform the functions of the Chairman under
paragraph 1 and any functions delegated to the Chairman under
paragraph 8(3)(a).
3 Remuneration
and expenses of board members
(1) The
OFSO must pay to the board members –
(a) such
remuneration as it may determine, subject to any maximum limit directed by the
Minister (who may direct different limits in respect of the Chairman, Deputy
Chairman and any other description of board member); and
(b) reasonable
out of pocket expenses occasioned in the course of carrying out their duties.
(2) Any
maximum remuneration directed by the Minister after the appointment of a board
member does not operate to reduce the remuneration previously determined by the
OFSO in respect of that board member, but does limit any subsequent increase.
4 Cessation
of office as board member
(1) A
person ceases to be a board member if –
(a) he
or she resigns from office by giving not less than one month’s
notice in writing to the Minister;
(b) the
Minister terminates his or her appointment under sub-paragraph (2); or
(c) his
or her appointment expires under sub-paragraph (4).
(2) The
Minister may terminate the appointment of a board member, other than the
Chairman, after –
(a) consulting
the Chairman, or, if paragraph 2(8) applies –
(i) the Deputy
Chairman in relation to any board member other than the Deputy Chairman, or
(ii) such board member
or members as the Minister sees fit in relation to the Deputy Chairman; and
(b) satisfying
himself or herself that the board member –
(i) has been absent
from meetings of the board for a period longer than 3 consecutive months
without the permission of the board,
(ii) has become
bankrupt,
(iii) is incapacitated by
physical or mental illness for a significant period, or
(iv) is otherwise unable or
unfit to discharge the functions of a board member.
(3) The
Minister must, not more than 2 weeks after terminating the appointment of
a board member, report to the States that the Minister has terminated the
appointment.
(4) A
person’s appointment as board member expires if –
(a) the
period for which the person was appointed expires without re-appointment;
(b) the
person becomes a member of the States;
(c) the
person becomes an Ombudsman, or any other member of the OFSO’s staff;
(d) the
person’s appointment as Chairman is terminated under paragraph 5(2);
or
(e) the
person completes 10 years (whether consecutive or in aggregate) of service
as a board member.
5 Cessation
of office as Chairman
(1) A
person ceases to be the Chairman if –
(a) he
or she resigns from office as Chairman by giving not less than 2 months’
notice in writing to the Minister;
(b) his
or her appointment as Chairman is terminated under sub-paragraph (2); or
(c) his
or her appointment as Chairman expires under sub-paragraph (5).
(2) The
Minister may terminate the appointment of the Chairman if the Minister is
satisfied that the Chairman –
(a) has
been absent from meetings of the board for a period longer than 3 consecutive
months without the permission of the board;
(b) has
become bankrupt;
(c) is
incapacitated by physical or mental illness for a significant period; or
(d) is
otherwise unable or unfit to discharge the functions of the Chairman.
(3) The
Minister must, not more than 2 weeks after terminating the appointment of
the Chairman, report to the States that the Minister has terminated the
appointment.
(4) A
person’s appointment as Chairman expires if –
(a) the
period for which he or she was appointed expires without re-appointment; or
(b) the
person ceases to be a board member.
6 Procedure
at meetings
(1) Except
as otherwise provided in this Law, the board may determine its own proceedings.
(2) The
quorum for the board is a majority of the board members.
(3) At
a meeting of the board –
(a) if the
Chairman is present, he or she is to preside;
(b) if
the Chairman is not present but the Deputy Chairman is present, the Deputy
Chairman is to preside;
(c) if
neither the Chairman nor the Deputy Chairman is present, the board members
present must elect one of their number to preside.
(4) At
a meeting of the board –
(a) each
board member has one vote on each matter for deliberation; and
(b) if
a vote is tied, it is to be taken to have been lost.
(5) A
resolution is a valid resolution of the board, even though it was not passed at
a meeting of the board, if –
(a) it
is signed or assented to by a majority of board members; and
(b) proper
notice of the proposed resolution was given to all board members.
(6) The
board must keep proper minutes of its proceedings, including minutes of any
business transacted in accordance with sub-paragraph (5).
7 Disclosure
of interest and criminal charges
(1) If
a board member has any direct or indirect personal interest in the outcome of
the deliberations of the board in relation to any matter –
(a) the
board member must disclose the nature of the interest at a meeting of the board
in person or by means of a written notice brought to the attention of the board;
(b) the
disclosure must be recorded in the minutes of the board; and
(c) the
board member must withdraw from any deliberations of the board in relation to
that matter and must not vote upon it.
(2) A board
member may disclose the nature of an interest for the purpose of sub-paragraph (1)(a)
by giving a general notice that he or she should be regarded as interested in
any matter concerning a particular organization, partnership or body corporate,
the members or directors of which include –
(a) that
board member; or
(b) a
person through whom that board member has an indirect interest.
(3) A board
member must notify the Minister as soon as practicable after being charged or
convicted of an offence –
(a) under
customary law or under any enactment; or
(b) against
any law of a country or territory outside Jersey.
8 Committees
and delegation
(1) The
board may authorize the transaction of its business by committees, established
by the board, that consist of board members alone or together with staff of the
OFSO or other persons appearing to the board to be appropriate for the
committee.
(2) The
functions of appointing the Principal Ombudsman under Article 4(1) and of
designating an Ombudsman under Article 5(1)(b) may be exercised only by
the board.
(3) The
OFSO may, subject to Article 14, delegate any of its other functions under
this or any other enactment wholly or partly to –
(a) the
Chairman;
(b) one
or more board members;
(c) a
committee authorized under sub-paragraph (1);
(d) an
Ombudsman; or
(e) any
other member of the OFSO’s staff.
(4) Nothing
in this paragraph –
(a) applies
to a function reserved by or under this Law to an Ombudsman or to the Principal
Ombudsman; or
(b) authorizes
the OFSO to delegate this power of delegation.
(5) The
delegation of a function under this paragraph –
(a) does
not prevent the performance of that function by the OFSO itself; and
(b) may
be amended or revoked by the OFSO.
9 Ancillary
functions
(1) The
OFSO may do anything reasonably necessary or expedient for or incidental to any
of its functions, so far as is not prohibited by any enactment.
(2) Without
prejudice to the generality of sub-paragraph (1), the OFSO may in its
corporate name –
(a) sue
and be sued;
(b) enter
into contracts; and
(c) acquire,
hold and dispose of property.
10 Seal
(1) As
a body corporate, the OFSO may have and use a common seal.
(2) The
application of the seal is to be authenticated by the signature of a person
authorized (generally or specifically) by the board for the purpose.
(3) If
a document purports to be duly executed under the seal, that document is to be –
(a) received
in evidence; and
(b) taken
to be duly executed, unless the contrary is proved.
11 Independence
from Minister and States
(1) The
OFSO and the Ombudsmen are independent of the Minister and of the States.
(2) Sub-paragraph (1)
is without prejudice to –
(a) any
provision of this Law, including in particular paragraph 12, or of any
other enactment; and
(b) any
obligation to comply with any condition lawfully attached to any funding
accepted by the OFSO from the States.
(3) Sub-paragraph (1)
is not to be construed as preventing the OFSO from being an independently
audited States body for the purposes of the Public Finances (Jersey) Law 2005[35].
(4) Despite
sub-paragraphs (2) and (3) –
(a) the
OFSO is not to be regarded as exercising functions on behalf of the Minister or
the States;
(b) the
Ombudsmen and the OFSO’s staff, board members and committee members are
not to be regarded as employees of the States; and
(c) neither
the Minister nor the States are liable for any act, or debt or other
obligation, of the OFSO.
12 Directions
and guidance from Minister
(1) The
Minister may give specific directions to the OFSO as to –
(a) the
format and content of its accounts and annual report under paragraph 1 of Schedule 2;
(b) the
setting of case-fees under paragraph 3 of Schedule 2;
(c) any
determinations as to a levy under Regulations under paragraph 4 of Schedule 2.
(2) The
Minister may give general directions to the OFSO in respect of its functions
under Article 22(1)(a) and (b).
(3) The
Minister may give guidance to the OFSO in respect of any matter on which
specific or general directions may be given.
(4) Directions
and guidance must be given in writing.
(5) The
OFSO must –
(a) act
in accordance with any specific directions given under sub-paragraph (1)
and any general directions given under sub-paragraph (2); and
(b) have
regard to any guidance given under sub-paragraph (3).
(6) The
Minister must not give guidance or general directions unless he or she –
(a) has
first consulted the OFSO and such other persons as appear appropriate to the
Minister; and
(b) considers
that the giving of that guidance or direction –
(i) is necessary in
the public interest, and
(ii) will not compromise
the independence of the OFSO.
13 Limitation
of liability
(1) A
protected person is not liable in damages for any act in the exercise or
purported exercise of any relevant function.
(2) Sub-paragraph (1)
does not apply –
(a) if
it is shown that the act was in bad faith; or
(b) so
as to prevent an award of damages made in respect of an act on the ground that
the act was unlawful as a result of Article 7(1) of the Human Rights
(Jersey) Law 2000[36].
(3) In sub-paragraph (1) –
(a) a
relevant function is a power, duty or other function that may or must be exercised
or performed under this Law or under any enactment under this Law; and
(b) a
protected person is –
(i) the OFSO,
(ii) the board,
(iii) a board member,
(iv) a committee member,
(v) an Ombudsman,
(vi) any other person who
exercises the relevant function as a member of the OFSO’s staff, or
(vii) any other person exercising a
relevant function, if any enactment provides that this paragraph is to apply to
that person when exercising that function.