The plan is part of the jurisdiction’s ongoing efforts to ensure that it stays at the forefront of best practice relative to other jurisdictions, according to Barry Faudemer, head of enforcement at the JFSC.
It dates back to the International Monetary Fund’s 2008 inspection, Faudemer said, when the lack of a power to impose civil penalties – normally fines – for Codes of Practice violations was highlighted in the body’s final report, in 2009.
“We looked at what other jurisdictions do, and how fines have been used, for example, in the UK,” Faudemer added.
“After reviewing our regulatory powers, we felt it was appropriate to develop a civil penalty power for breaches of the codes of practice.”
The JFSC’s plans to introduce civil penalties for Codes of Practice violations was in the news in Jersey this week after Faudemer spoke about it during a recent Compliance and Economic Crime Symposium held on the island. The commission published a consultation paper on the matter in April, which may still be viewed on its website by clicking here.
It plans to publish the results of the consultation, in the form of a feedback paper, early next year, Faudemer said, after which a law is expected to eventually be drafted, considered and voted on by the States of Jersey’s lawmakers.
If approved, it would likely take effect sometime in 2014, Faudemer added.
Guernsey and the Isle of Man, the other two British Crown Dependencies, are understood to already have civil penalties for Codes of Practice violations on their books.
In Jersey, Codes of Practice currently exist for each of the following financial services sectors: deposit-taking; funds services; general insurance mediation; insurance; investment; money service and trust administration.
