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Authorisation/Supervision/Enforcement - Coggle Diagram
Authorisation/Supervision/Enforcement
prospective financial services businesses are required to evidence that they are fit and proper in order to be authorised to conduct financial services business in or from within Jersey
JFSC will assess the
Integrity, competence, financial standing, structure and organisation
Persons employed by or principle persons associated with the FSB
Description of business FSB will carry out
Principle Person definition
Shareholders that directly or indirectly own 10% more of the regulated entity
Directors of the regulated entity
Other ‘controllers’ of the regulated entity
Commission to ensure that those persons that have control, influence or management of the regulated entity are themselves ‘fit and proper’
Integrity
Reflection of the individuals employed by or associated
FSB must be able to demonstrate that it intends to, and on an ongoing basis through compliance with the relevant Codes of Practice will:
conduct it's business with integrity
have due regards for the interest of it's customers
provide supervision/training to those employed/associated
Competence
Demonstrate that it is and will have procedures to remain competent to undertake regulated activities, including ability to comply with regulatory framework
Evidenced by relevant qualifications or sufficient experience
Demonstrate supervision and training of both entities and individuals charged with performing particular functions
Financial Standing
Maintaining adequate financial resources to enable a registered person to survive periods of business slow down or market disruption
Demonstrate & maintain capital
adequacy financial resources
Systems and controls for managing financial risks - liquidity management and care of customers’ money and assets
Transparency of Ownership
Identify individuals who ultimately own the business & who exercise control over the appointment & any individuals who will have significant powers and responsibilities
If complex, FSB must justify the rationale
Supervision
Statutory Reporting Requirements
annual returns to monitor capital adequacy
identity of controllers
change is activities
Onsite examinations
undertaken by SEU (Supervision Examination Unit
checklist of compliance points to determine procedures are adequate
Offsite supervision
desk-based supervision
review audited financial statements
review SARs
Complaints
Marketing material
Formal investigations
Invoked when the regulator is concerned that procedures being adopted by firms are exposing the island to risk
Enforcement
Where a person has contravened regulatory laws/regulations, orders, codes of practice, directions or conditions made under these laws, or has committed other instances of misconduct (breaches of the anti-money laundering legislation)
Warnings & Statements
Issued to board of Directors/senior managements setting out commissions concerns on conduct
Commission has powers in certain circumstances to issue a public statement