Why you need to apply for a no objection

You will need to apply for a no objection in order to represent a regulated entity or fund.

We are required by relevant legislation to consider the fitness and propriety of anyone seeking to fulfil certain senior positions.

Although, we don’t “approve” individuals for senior positions, we need to decide whether we object to their appointment to proposed positions.

The relevant legislation is:

• Article 14 of the Financial Services (Jersey) Law 1998 (FS(J)L)
• Article 12B of the Collective Investment Funds (Jersey) Law 1988 (CIF(J)L)
• Articles 14 and 24 of the Banking Business (Jersey) Law 1991 (BB(J)L)
• Article 23 of the Insurance Business (Jersey) Law 1996 (IB(J)L)

Together referred to as the regulatory laws.

A Registered Person

For a no objection a 'Registered Person' includes any person who has applied to, or who has been granted permission by us to undertake a financial services business that is regulated under one of the regulatory laws.

Why Registered Persons are required to provide information to us

As the financial regulator it is our responsibility to:

• reduce risk to the public of financial loss due to dishonesty, incompetence, malpractice or the financial unsoundness of financial service providers
• protect and enhance the reputation and integrity of Jersey in commercial and financial matters
• safeguard the best economic interests of Jersey
• counter financial crime both in Jersey and elsewhere

Who needs to apply for a no objection

We generally refer to these positions as Principal Persons and Key Persons. In all instances the nature of the role will define whether the individual is a Principal Person or Key Person.

A Principal Person

The following provides further information regarding the term Principal Person and the Jersey regulatory laws.

BB(J)L

As defined in Article 1 of the BB(J)L, a Principal Person means a:

• director
• controller
• manager
• senior officer (as defined by the Banking Business (General Provisions) (Jersey) Order 2002).

While you may be referred to as Principal Persons, the no objection will refer specifically to director, controller, manager and / or senior officer as applicable.

IB(J)L

For a Category B insurance permit, we consider Principal Person to mean:

• a chief executive and shareholder controller as defined in Article 1 of the IB(J)L
• the actuary appointed in line with Article 25 of the IB(J)L
• any person intending to act as a director.

Principal Person is defined in Article 1 of the respective laws.

These laws cover:

(i) FS(J)L:

• Alternative Investment Fund Services Business
• Fund Services Business
• General Insurance Mediation Business
• Investment Business
• Money Service Business
• Trust Company Business

(ii) CIF(J)L:

• recognized funds
• recognized fund functionaries
• certified funds

Category A permit holder

If you meet the definition of a Principal Person or Key Person for a Category A permit holder (IB(J)L) you aren’t required to apply for a no objection.

A Key Person

A Key Person is a defined term in each of the regulatory laws and covers individuals fulfilling any one of the following three roles:

• Compliance Officer
• Money Laundering Compliance Officer
• Money Laundering Reporting Officer

Key Persons should complete and submit the application as this has been designed to also satisfy the notification of appointment requirements of Articles 7 and 8 respectively of the Money Laundering (Jersey) Order 2008 and the requirements of the regulatory laws in respect of Key Persons.

What makes you a Key or Principal Person- span of control

Span of control is a term used to describe individuals who have day-to-day control and oversight of a regulated business’ operations in Jersey.

We are required to consider a number of factors when determining whether an applicant (e.g. company or partnership) is fit and proper to conduct financial services business. The structure and organisation of the applicant is a key factor in our determination.

For some financial services businesses, we have detailed, in the Codes of Practice, the minimum number of individuals that we consider necessary for the applicant to demonstrate adequate structure and organisation.

In the majority of cases, the span of control will comprise of individuals that meet the definition of a Principal Person. However, there are circumstances where this will not be the case, most notably where the regulated business operates in Jersey as a branch of a company incorporated in another jurisdiction.

In the limited circumstances where the span of control requirements will not be, or are not, met by individuals that are Principal Persons, we may assess an individual for the purpose of the applicant meeting the structure and organisation element of the fit and proper test. This assessment is conducted via the no objection process and we will notify you of the outcome of this assessment.

Assign your no objection application to your employer

In some circumstances there may be reasons for your employer to complete the application and you are able to assign your application to another party, but they are not permitted to submit it on your behalf.

Taking up your position before we have issued our no objection

We understand there will be circumstances when it may not be possible for you to give us prior notification of your intention to become a Principal Person or Key Person. contact your supervisor or Regulatory Maintenance team as soon as possible to let us know and agree next steps.

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