(General Provisions) (Jersey) Order 2002
DEVELOPMENT COMMITTEE, in pursuance of Articles 5,
8, 9, 11, 20, 34 and 51 of the Banking
Business (Jersey) Law 1991, on the recommendation
of the Jersey Financial Commission and having consulted with such persons as
appear to the Committee to represent the interests of accountants and
registered persons, orders as follows –
Commencement [see endnotes]
(1) In this Order –
in relation to a deposit advertisement, means the deposit in relation to which
the advertisement contains –
(a) an invitation to
make such a deposit; or
(b) information that is
intended or might reasonably be presumed to be intended to lead directly or
indirectly to the making of such a deposit;
means, in relation to a deposit, the person carrying on the deposit-taking
business taking the deposit;
Law” means the Banking Business (Jersey) Law 1991.
reference in this Order to an enactment, including an enactment of the United
Kingdom, is a reference to that enactment as amended by or under any other enactment.
A transaction described as an
exempt transaction in Articles 3 to 7, inclusive, is prescribed for the
purposes of Article 8(3) of the Law as a transaction to which the
prohibition in Article 8(1) of the Law does not apply.
is an exempt transaction for a charity to accept a sum if –
(a) the sum is paid by
another charity; or
(b) no interest or
premium is payable in respect of the sum.
this Article “charity” means an institution, trust or undertaking,
whether corporate or not, that is established for charitable purposes.
and Provident Societies
is an exempt transaction for an industrial and provident society to accept a
sum in the form of withdrawable share capital.
this Article “industrial and provident society” means a society
registered or deemed to be registered under the Industrial and Provident Societies Act 1965
of the United Kingdom as applied to Jersey by the Industrial and Provident Societies (Channel
Islands) Order 1965.
is an exempt transaction for a practising advocate or a practising solicitor to
accept a sum in the course of his or her profession.
this Article –
(a) “practising advocate”
means an advocate who is qualified to act as such under the Advocates and Solicitors (Jersey) Law 1997;
solicitor” means –
(i) a solicitor who is qualified to act as such under the Advocates and Solicitors (Jersey) Law 1997, or
person who is qualified to act as a solicitor under any of section 1 of the Solicitors Act 1974 of the United Kingdom,
Article 4 of the Solicitors (Northern
Ireland) Order 1976 or section 4 of the Solicitors (Scotland) Act 1980 and
who is, for the time being, practising as such from or within Jersey.
is an exempt transaction for a person to accept a sum –
(a) to engage in any form of investment dealing
activity for or on behalf of the person by whom or on whose behalf the sum was
(b) to engage in any
service activity on behalf of that person.
this Article –
dealing activity” means to buy, sell, subscribe for or underwrite
investments or to offer or agree to do so either as principal or as agent;
activity” means any of the following activities –
(a) to make or agree to
(i) arrangements with a view to another person buying, selling,
subscribing for or underwriting a particular investment, or
(ii) arrangements with a view to a person who participates in the
arrangements, buying, selling, subscribing for or underwriting investments;
(b) to manage, or offer
to manage, assets, belonging to another person if –
(i) the assets consist of or include investments, or
arrangements for their management are such that the assets may consist of or
include investments at the discretion of the person managing or offering or
agreeing to manage them and either they have at any time done so or the
arrangements have at any time been held out as arrangements under which they
would do so;
(c) to establish, operate or wind up a
collective investment scheme, including acting as a trustee or custodian of a
recognized fund, as that term is defined in the Collective Investment Funds
(Recognized Funds) (Rules) (Jersey) Order 2003.
It is an exempt transaction for a person
to accept a sum as a trustee –
lend it, in such a way that it is segregated from his or her own assets, to one
or more persons in any part of the world duly authorized to carry out a deposit-taking
(b) in the course of carrying on the business of a trustee.
A body listed in Schedule 1 is an
exempt person for the purposes of Article 8(2)(d)
of the Law subject to the conditions specified in that Schedule in relation to
person may apply for registration under Article 9 of the Law by delivering to
the Commission an application in the form approved or provided by the
11 Conditions of
is a condition of every registration under the Law that the registered person –
(a) must not commence
without the Commission’s consent a new activity in Jersey, being activity
that has or may have a significant effect on the business or profitability of
the registered person;
(b) must remove a
director, controller or manager of the registered person appointed under Article 24(1)
of the Law if the Commission so requires on the grounds that the Commission does
not consider the director, controller or manager to be a fit and proper person
to hold such office; and
(c) must comply
promptly with a notice issued under Article 26(1) of the Law.
the registered person is a branch of an organization it is an additional
condition of registration of the registered person under the Law that the
registered person –
(a) must appoint a
senior officer, approved by the Commission, outside Jersey to fulfil the
obligations imposed by the Law on the registered person;
(b) must ensure that the person so appointed
informs the Commission of the name of the principal manager of the registered person
in Jersey and that of any deputy and, within 14 days, notifies the Commission
of any change in those offices; and
(c) must, unless
exempted by the Commission, appoint a branch auditor approved by the
the registered person is a subsidiary of an organization it is an additional
condition of registration of the registered person under the Law that the
registered person –
(a) must not establish
or acquire a representative office, a branch or a subsidiary outside Jersey
without the Commission’s approval;
(b) must not
participate with others in a joint venture outside Jersey involving a deposit-taking,
banking or investment business without the Commission’s approval;
(c) must not enter into
an exposure to any one person or a group of connected persons that exceeds 25%
of the registered person’s agreed capital resources without the
Commission’s approval; and
(d) must publish and
provide to the Commission relevant accounts.
paragraph (3)(d) “relevant accounts”
means accounts –
(a) that have been
prepared in accordance with generally accepted accounting principles;
(b) that show a true
and fair view of the profit or loss of the registered person for the relevant
accounting period, and of the state of the registered person’s affairs at
the end of the period; and
(c) that comply with
any other requirements of the Law and of the Companies (Jersey) Law 1991.
relevant accounts referred to in paragraph (3)(d)
must be published within 3 months of the date of the balance sheet although a
registered person may instead publish for the use of depositors and potential depositors –
(a) summarized accounts
of the registered person in a form determined by the Commission; or
(b) “true and
fair” audited accounts.
12 Control of
Article applies to a deposit advertisement issued by –
(a) a registered person
that is a company incorporated in Jersey;
(b) a registered person
that is a branch of a company incorporated outside Jersey;
(c) a person other than
a registered person, who issues or intends to issue a local deposit
does not apply to a deposit advertisement issued in a place outside Jersey by a
registered person that is a company incorporated outside Jersey if the
advertisement is for –
(a) the business of the
company as a whole; or
(b) a branch or other
office of the company outside Jersey, if the sole mention in the advertisement
of the branch or other office in Jersey is as a part of a geographical list of
the places where that company carries on its business.
deposit advertisement must not be issued in Jersey unless it complies with the
conditions specified in Schedule 2.
this Article “local deposit advertisement” means a deposit
(a) published in a
newspaper, magazine or journal circulating principally in Jersey;
(b) published by means
of a broadcast (whether in sound or vision or a combination of sound and
vision) received principally in Jersey; or
(c) published by means
of any other electronic communication, as that term is defined by the Electronic Communications (Jersey) Law 2000, where Jersey is featured as an essential element of the
13 Circumstances in
which matters are to be reported directly to Commission
Article applies to a person who –
(a) is the auditor of a
registered person; or
(b) has been appointed
under Article 26 of the Law to make a report in respect of a registered person.
(2) The person must immediately report to the
Commission without informing the registered person if the person becomes aware
of the probable existence of exceptional circumstances.
(3) Exceptional circumstance are circumstances
in which the interests of depositors in the registered person could be
prejudiced if there were to be made known to the management of the registered person
the fact that a person to whom this Article applies was aware of the existence
of the circumstances.
(4) So, for example (but without limiting the
generality of the paragraph (3)), a report must be made to the Commission
under paragraph (2) if the person has reason to believe –
(a) that the directors
or members of the senior management of a registered person have committed fraud
or misappropriated property or intend to do so;
(b) that the directors or members of the senior
management are acting in an irresponsible or reckless manner with respect to
the registered person’s affairs, or intend to do so; or
(c) that there has
been, or is likely to be, an occurrence of material significance for the
exercise in relation to the registered person of the Commission’s powers
or functions under the Law.
(5) A person to whom this Article applies must
also report circumstances in respect of a registered person directly to the
Commission if having advised the registered person to inform the Commission of
those circumstances within a specified period the person is satisfied that the
registered person has not done so or has not done so fully or in an adequate
This Order may be cited as the
Banking Business (General Provisions) (Jersey) Order 2002.
1 The Channel Islands
Co-operative Society Limited (the “Society”)
Subject to the following conditions –
exemption only applies to the acceptance of deposits from members of the Society
from time to time and from persons who (on the date of the coming into force of
the Law) were depositors with the Society.
Society shall limit deposits to 100% of its most recently published capital and
Society may only issue deposit advertisements to persons who are members of the
Society or to persons who on the coming into force of the Law were depositors
with the Society, except that this condition shall not prevent the Society from
advertising its deposit-taking services in any of its premises and shall not
prevent the Society from placing notices in any newspaper of changes in any
rate of interest payable in respect of deposits with the Society.
Society’s auditors shall provide to the Commission an annual statement in
writing that conditions 1 and 2, above, have been complied with.
Society shall provide the Commission with such information about its business
as the Commission may request.
Society shall permit persons authorized by the Commission for the purpose to
carry out inspections of any part of its activities and shall give any such
persons such assistance in the inspection as they may reasonably require.
2 Community Savings &
Credit Limited (the “Company”)
Subject to the following conditions –
Company shall not change its auditors without the prior consent of the
Board members and directors must be approved by the Commission.
Commission shall be free to impose such additional conditions on the activities
of the company as it considers necessary for the protection of the members.
Company shall operate according to rules which are consistent with those used
by Credit Unions operating in the United Kingdom.
Company shall enter into an Insurance Bond in a format acceptable to the
Commission to protect the savings of members from fraud or theft.
Company shall provide the Commission with such information about its
business/activities at such frequency as the Commission may request.
Company shall permit Officers of the Commission or persons authorized by it for
the purpose to carry out inspections of any part of the Company’s
activities and shall give such persons such assistance in inspection as they
may reasonably require.
Company shall submit copies of its annual audited accounts to the Commission
within 3 months of its financial year end.
Conditions applicable to a
deposit advertisement must state –
(a) the full name of
the deposit-taker; and
(b) the business
address of the deposit-taker in Jersey.
must also state –
(a) if the deposit-taker
is not a company incorporated in Jersey, its place of incorporation, or in the
case of a body other than a company, the place of its head office;
(b) if the deposit-taker is a company
incorporated in Jersey, that copies of the deposit-taker’s latest audited
accounts are available for inspection on request; or
(c) if the deposit-taker
is not a registered person, that fact together with details its place of
registration, if any.
(2)(b) shall not apply in relation to a deposit
advertisement issued by the exhibition of a cinematograph film or by way of
sound or television broadcasting if the advertisement contains a statement that
further particulars will be sent if application is made to the address
specified in the advertisement, and those particulars include the information
specified in that sub-paragraph.
a deposit advertisement specifies a rate of interest payable on deposits the
advertisement must state –
(a) any minimum amount
that must be deposited to earn the rate of interest;
(b) any period of time during
which no interest will be payable;
(c) any minimum period
of time during which a deposit must be retained by the deposit-taker in order
to earn the rate of interest;
(d) any minimum period
of notice that must be given before repayment may be required of a deposit
earning the rate of interest; and
(e) the intervals at
which the interest will be paid.
the rate of interest that is specified is not an annual rate of simple
interest, the advertisement must state the basis on which the rate will be
the rate of interest that is specified may be varied during the period for
which the deposit will be held this must be stated in the advertisement.
interest will or may not be paid in full at the rate that is specified, this
must be stated in the advertisement, and the advertisement must state the
nature and the amount of or rate of any deductions that will or may be made
from the interest before payment.
the rate of interest that is specified is or may not be the rate at which
interest will be payable in respect of deposits on the date on which the
advertisement is issued this must be stated in the advertisement, and the
advertisement must state the date on which interest was payable at the rate
that is specified, such date being as close as reasonably practicable to the
date on which the advertisement is issued.
an advertisement specifies more than one rate of interest payable in respect of
deposits of a particular amount the advertisement must contain the information
required by any of the foregoing sub-paragraphs in relation to each such rate.
different rates of interest apply to deposits of different amounts, the
advertisement must contain the information required by any of the foregoing sub-paragraphs
in relation to each such rate.
a deposit advertisement contains a reference to the amount of the paid-up
capital and reserves of a holding company of a registered person, or of a group
of which the registered person is a member, the advertisement must also state
with equal prominence the amount of the paid-up capital and reserves of the
registered person, described as such.
an advertisement contains a reference to the amount of the assets of a holding
company of a registered person, or of a group of which the registered person is
a member –
(a) the advertisement must, unless that amount
relates to the net assets of that holding company or group and is so described,
state with equal prominence the amount of the liabilities of that holding
company or group described as such; and
(b) the advertisement
must state with equal prominence the amount of the net assets of the registered
person, described as such.
this paragraph –
(b) the net assets of a
company or a group shall be taken to be the total assets less the liabilities;
(c) a group means a
company and all its subsidiaries; and
(d) a company also
means a building society.
deposit advertisement must state in relation to a deposit –
(a) in every case, whether
or not the repayment of the deposit, or the payment of any interest on the
deposit, would (to any extent) be covered under a scheme for compensating
depositors, being a scheme established under Article 37 of the Law; and
(b) in the case where
the repayment of the deposit, or the payment of any interest on the deposit,
would (to any extent) be covered under a scheme for compensating depositors
established by law (and not merely by agreement) outside Jersey, that fact.
in sub-paragraph (1) prevents the inclusion in a deposit advertisement of
matter relating or apparently relating to any other scheme, or an arrangement, for
covering, guaranteeing, securing or otherwise protecting (to any extent) deposits,
the interest on them, the repayment of deposits, or the payment of the interest
a deposit advertisement states or implies that the repayment of the deposit, or
the payment of any interest on the deposit, would be covered under a scheme
referred to in sub-paragraph (1) (or includes matter as described in
sub-paragraph (2) relating or apparently relating to any other scheme or
an arrangement) the advertisement must state –
(a) if, under one or
more such schemes or arrangements, the repayment or payment is guaranteed (or
the advertisement represents that it is guaranteed), the name of the provider
of that guarantee;
(b) in every case, the
nature and extent of the cover, guarantee, security, or protection, afforded by
each scheme or arrangement; and
(c) in the case of any
scheme referred to in sub-paragraph (1), the maxima that apply under the
scheme as to repayment and payment in respect of as many of the following as
the maxima are applicable to –
(i) an individual deposit, in the case of any one default by the
(ii) an individual depositor, in the case of any one default by
(iii) the aggregate of deposits covered by the scheme, in relation
to all deposit-takers to which the scheme applies.
the case of a scheme referred to in sub-paragraph (1), it is sufficient
compliance with clause (a) or (b) of sub-paragraph (3) if a deposit
advertisement that refers to the scheme states the address of a website that
sets out the matters specified in that clause.
A deposit advertisement must state
the currency in which the deposits are to be made.
6 Supplementary Provisions
The matters required to be included
in a deposit advertisement by virtue of this Schedule must be shown clearly and
legibly, or in the case of an advertisement issued by the exhibition of a
cinematograph film or by way of sound or television broadcast, spoken clearly.