Financial Services
(Appointment of Manager) (Jersey) Order 2008
1 Interpretation
(1) In
this Order –
“customer”, in
respect of a person (the “first person”), includes a client of the
first person or, if the first person is carrying on trust company business, a
person who has entered into an agreement for the provision of services to be
provided by the first person when carrying on trust company business, or a
person who has received or may receive the benefit of services to be provided
or arranged by the first person when carrying on trust company business;
“Law” means
the Financial
Services (Jersey) Law 1998.
(2) In
this Order a note contained in a paragraph of the Schedule to this Order forms
part of that paragraph.
2 Prescribed
circumstances in which the Commission may apply to the Court for appointment of
a manager
(1) The
Schedule sets out the prescribed circumstances for the purposes of Article 12
of the Law.
(2) The
Commission may apply to the Court for the appointment by the Court of a person
to manage the affairs of a person in so far as those affairs relate to the
carrying on of financial service business where it is satisfied that there is
sufficient evidence to show the existence of any of the cases set out in the
Schedule.
3 Citation
This Order may be cited
as the Financial Services (Appointment of Manager) (Jersey) Order 2008.
SCHEDULE[1]
(Article 2)
prescribed circumstances
Case 1
There has been inadequate
management of the affairs of a financial service business carried on by a
person (“the person”).
Note Such
inadequate management may be evidenced, in particular, by –
(a) the dishonesty of a principal person of the
person;
(b) any
person committing a serious breach of a fiduciary duty in respect of the
person’s financial service business;
(c) the
person having insufficient resources to continue to carry on the financial
service business effectively;
(d) a
serious failure by the person to maintain proper records;
(e) the
existence of a conflict of interests that may prevent the interests of the
person’s financial service business or customers or potential customers
being properly protected;
(f) the
person committing serious and persistent breaches of –
(i) the Drug
Trafficking Offences (Jersey) Law 1988, the Proceeds of Crime (Jersey)
Law 1999, the Terrorism
(Jersey) Law 2002, the Proceeds of Crime
(Supervisory Bodies) (Jersey) Law 2008, the Money Laundering
(Jersey) Order 2008 or an Order made under the European Communities
Legislation (Implementation) (Jersey) Law 1996 and relating to the
freezing of funds,
(ii) any
other enactment of Jersey relating to money laundering or the financing of
terrorism,
(iii) any
code of practice made under an enactment referred to in sub-paragraph (i)
or (ii) or adopted by or under such an enactment,
(iv) the
Law or any Code of Practice made under the Law or adopted by or under the Law,
or
(v) an enactment made under
the Law;
(g) the
death or incapacity or prolonged absence of a principal person of the person to
the detriment of the financial service business of the person.
Case 2
The person carrying on
the financial service business appears to have ceased to do so but has failed
to wind up, liquidate, close or transfer the business in an orderly manner or
at all.
Case 3
The person carrying on
the financial service business has persistently failed to examine claims or
complaints of customers.
Case 4
The person carrying on
the financial service business is not registered under the Law to carry on
financial service business of that type.
Case 5
There is a need to
appoint a manager to collect, protect or preserve the assets or records of the
financial service business or the property of the customers of the business, or
both.
Case 6
There is a need to appoint a manager to avoid circumstances arising
that could provide grounds for a forced closure of the financial service
business.
Case 7
There is a need to
appoint a manager to promote or implement a compensation scheme established
specifically for customers of the financial service business.
Case 8
The person carrying on
the financial service business has failed to comply with any of the
following –
(a) a
condition under Article 10 of the Law;
(b) a
notice of objection under Article 13 of the Law;
(c) a
direction under Article 23 of the Law,
and there is therefore a
need to appoint a manger of the business to ensure its independent management.