Draft Financial Services Commission (Amendment No. 5) (Jersey) Law 200-
European Convention on Human Rights
In accordance with the provisions of Article 16 of the
Human Rights (Jersey) Law 2000 the Minister for Economic Development has made
the following statement –
In the view of the Minister for Economic Development
the provisions of the Draft Financial Services Commission (Amendment
No. 5) (Jersey) Law 200- are compatible with the Convention Rights.
(Signed) Senator P.F.C. Ozouf
REPORT
The purpose of this Law is to restore the application of Article 8(2) of the Financial Services Commission (Jersey) Law 1998 (the “1998 Law”) as it relates to unclassified funds to that prevailing before the Collective Investment Funds (Jersey) Law 1988 (the “1988 Law”) was amended by the Collective Investment Funds (Amendment No. 4) (Jersey) Law 2008 (“Amendment No. 4”).
This amendment to the 1998 Law would expand the defined expression “supervised entity” so as to include a certificate holder in relation to an unclassified fund. The expression “supervised entity” is used to describe the entities in relation to which the Jersey Financial Services Commission may exercise the powers described in Article 8(2) of the 1998 Law.
Article 8(2) provides for the Commission to have the power, as part of its routine examination of a supervised entity –
(a) to require the entity to supply information in a format and at times specified by the Commission;
(b) to require the entity to provide answers to questions; and
(c) to require the entity to allow officers or agents of the Commission to enter the entity’s premises.
Amendment No. 4 amended the 1988 Law to make new provision for the grant of certificates to companies, unit trusts and partnerships that relate to unclassified funds (as defined in Article 1 of the 1988 Law).
Previously “functionary permits” were granted under the 1988 Law in relation to unclassified funds (as well as in relation to a class of collective investment fund known as a recognized fund). Such permit holders are already covered by Article 8(2) of the 1998 Law. However, following the enactment of Amendment No. 4, permits issued under the 1988 Law now only related to recognized funds.
Accordingly, this amending Law is needed to restore the application of Article 8(2) in relation to unclassified funds to that which prevailed before the enactment of Amendment No. 4.
Financial and manpower implications
This draft Law will have no implications for the financial or manpower resources of the States.
European Convention on Human Rights
Article 16 of the Human Rights (Jersey) Law 2000
requires the Minister in charge of a Projet de Loi to make a statement about
the compatibility of the provisions of the Projet with the Convention rights
(as defined by Article 1 of the Law). On 25th July 2008 the Minister for Economic
Development made the following statement before Second Reading of this Projet
in the States Assembly –
In the view of the Minister for Economic Development
the provisions of the Draft Financial Services Commission (Amendment
No. 5) (Jersey) Law 200- are compatible with the Convention Rights.
Explanatory Note
This Law amends the Financial Services Commission (Jersey) Law 1998 (the “1998 Law”) consequentially upon amendments to the Collective Investment Funds (Jersey) Law 1988 (the “1988 Law”) made by the Collective Investment Funds (Amendment No. 4) (Jersey) Law 2008.
The 1988 Law, as amended, makes new provision for the grant of certificates to companies, unit trusts and partnerships that are, or relate to, unclassified funds.
This amendment to the 1998 Law would expand the defined expression “supervised entity” so as to include such a certificate holder. The expression “supervised entity” is used to describe the entities in relation to which the Jersey Financial Services Commission may exercise the powers described in Article 8(2) of the 1998 Law which are part of the Commission’s general power described in paragraph (1) of that Article.
