Banking Business
(Appointment of Manager) (Jersey) Order 2008
THE MINISTER
FOR ECONOMIC DEVELOPMENT, in pursuance of Articles 37A and 51 of the Banking Business (Jersey) Law 1991 and on the recommendation of the Jersey
Financial Services Commission, orders as follows –
Commencement [see endnotes]
1 Interpretation
(1) In
this Order –
“customer”, in
respect of a person carrying on a deposit-taking business means –
(a) a
person who has money deposited with the person carrying on the business;
(b) a
person who has borrowed money from the person carrying on the business that has
not been repaid;
(c) a
person who owes to the person carrying on the business interest or any other
obligation on money borrowed from the person carrying on the business; or
(d) a
person who receives, whether or not for a consideration, a service from the
person carrying on the business that is relevant to that business;
“Law” means
the Banking Business
(Jersey) Law 1991.
(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 appoint a manager
(1) The
Schedule sets out the prescribed circumstances for the purposes of Article 37A
of the Law.
(2) The
Commission may appoint a person to manage the affairs, or any part of the
affairs, of a person in so far as those affairs relate to the carrying on of
deposit-taking 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 Banking Business (Appointment of Manager) (Jersey) Order 2008.
SCHEDULE[1]
(Article 2)
PRESCRIBED CIRCUMSTANCES
Case 1
There has been inadequate
management of the affairs of the deposit-taking business carried on by a person
(“the person”).
Note Such inadequate management
may be evidenced, in particular, by –
(a) the dishonesty of a controller of the person;
(b) the person
having insufficient resources to continue to carry on the deposit-taking
business effectively;
(c) a
serious failure by the person to maintain proper records;
(d) the
existence of a conflict of interests that may prevent the interests of the person’s
business or the interests of a customer or potential customer of the person
being properly protected;
(e) 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;
(f) the
death or incapacity or prolonged absence of a controller of the person to the
detriment of the deposit-taking business of the person.
Case 2
The person carrying on
the deposit-taking 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 deposit-taking business has persistently
failed to examine claims or complaints of customers.
Case 4
The person carrying on
the deposit-taking business is not registered under the Law to carry on such
business.
Case 5
There is a need to
appoint a manager to collect, protect or preserve the assets or records of the
deposit-taking 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 deposit-taking business.
Case 7
There is a need to appoint a manager to promote or implement a
compensation scheme established specifically for customers of the
deposit-taking business.
Case 8
The person carrying on
the deposit-taking business has failed to comply with any of the
following –
(a) a
condition under Article 11 of the Law;
(b) a
notice of objection under Article 14, 15 or 24 of the Law;
(c) a
direction under Article 21 of the Law,
and there is therefore a
need to appoint a manager of the business to ensure its independent management.