Financial Services
(Investment Business (Overseas Persons – Exemption)) (Jersey)
Order 2001
THE ECONOMIC DEVELOPMENT COMMITTEE, in
pursuance of Article 7(2)(a)(ii) and (b) of the Financial Services
(Jersey) Law 1998, and on the recommendation of the Jersey Financial
Services Commission orders as follows –
Commencement [see endnotes]
1 Exemption for certain overseas persons
(1) In
accordance with Article 7(2)(a)(ii) and (b) of the Financial Services
(Jersey) Law 1998 (in this Order referred to as the “Law”) it
is declared that the Law shall not apply to –
(a) an
overseas person when carrying out a specified transaction;
(b) a
specified transaction when carried out with an overseas person; or
(c) the
publication in Jersey by an overseas person of an investment advertisement
that –
(i) complies with an Order
made under Article 31 of the Law, and
(ii) solicits
a person in Jersey to enter into a specified transaction.
(2) In
this Article “overseas person” means a person who –
(a) has
no place of business in Jersey from which he or she carries on investment
business in or from Jersey; and
(b) is
not a company incorporated in Jersey.
(3) Except
as otherwise provided, in this Article “specified transaction”
means a transaction amounting to investment business by virtue of which an
overseas person –
(a) deals
with a person in Jersey;
(b) acts
as an agent for a person in Jersey;
(c) carries
out discretionary management activities for a person in Jersey; or
(d) provides
advice to a person in Jersey.
(4) A
transaction is not a “specified transaction” unless the transaction
came about by virtue of –
(a) an
approach made by or on behalf of the person in Jersey to the overseas person
that –
(i) was not solicited
by the overseas person, or
(ii) was
solicited by the overseas person by an investment advertisement that complied
with any Order made under Article 31 of the Law; or
(b) an
approach made by the overseas person by an investment advertisement that
complied with any Order made under Article 31 of the Law.
(5) A
transaction is not a “specified transaction” if the person in Jersey
is a natural person and has entered into the transaction as a member of the
public unless –
(a) the
overseas person has his or her head office in a country where he or she is
supervised in respect of investment business by a relevant authority in that
country; and
(b) the
overseas person when dealing with the person in Jersey does so in accordance
with the relevant standards expected of registered persons as specified in any
Code of Practice issued by the Commission.
(6) A
transaction is not a “specified transaction” if it requires the
overseas person to act as an agent for the person in Jersey in respect of an
agreement with another person unless –
(a) that
other person is outside Jersey; or
(b) if
that other person is in Jersey, paragraph (7) applies.
(7) A
transaction that requires the overseas person to act as an agent for the person
in Jersey (in this paragraph called the “first person”) in respect
of an agreement with another person in Jersey is a “specified
transaction” for the purpose of paragraph (6)(b) if the agreement
came about by virtue of –
(a) an
approach made by or on behalf of the first person to that other person in Jersey
that –
(i) was not solicited
by that other person in Jersey, or
(ii) was
solicited by that other person in Jersey by an investment advertisement that
complied with any Order made under Article 31 of the Law; or
(b) an
approach made by that other person in Jersey by an investment advertisement
that complied with any Order made under Article 31 of the Law.
2 Citation
This Order may be cited
as the Financial Services (Investment Business (Overseas Persons –
Exemption)) (Jersey) Order 2001.