The Jersey Financial Services Commission has released a consultation paper
in respect of an Order – the Banking Business (Reporting and Disclosure)
(Jersey) Order 201-. Among several regulatory changes to reporting requirements
on Jersey banks, depositors will benefit from greater access to information
on the financial standing of bank, and relevant information in respect of Depositor
Compensation Schemes.
According to the consultation paper, the proposed order will bring together
in one Order the existing requirements for Jersey registered banks in respect
of:
- reporting certain financial information to the Commission; and
- the publication of financial accounts.
The Proposed Order will also establish new requirements of banks in respect
of disclosures to the public, depositors and potential depositors.
Certain changes to the Banking Business (General Provisions) (Jersey) Order
2002 (the GPO) and the Codes of Practice for Deposit-taking Business (the Banking
Codes) are proposed that would require disclosures regarding Depositor Compensation
Schemes (DCSs), following the recent introduction of a DCS in Jersey.
Changes are also proposed to the GPO and Banking Codes to reflect the requirements
in the Proposed Order.
The Commission intends to consult with Industry during early 2010 with a view
to amending the Banking Law, and other regulatory Laws, to enable the Minister
for Economic Development to make Orders (such as the Proposed Order) that will
establish:
- requirements in respect of the publication of financial information; and
- powers to object to the appointment of an auditor.
According to the consultation paper, the Proposed Order will bring together
existing regulatory requirements in respect of the provision of financial accounts
and prudential returns to the Commission. The Order will better establish these
as requirements under the Law, set out required timescales for the provision
of reports and establish public disclosure requirements.
In accordance with the Deposit-taking Business Fees Notice, first issued in
January 2008 and last updated in February 2010, a fee of GBP100 per month will be payable in respect of late filing of reports against the
deadlines set out in the Proposed Order.
Existing banks will not be significantly affected by most of these proposals
as the requirements in respect of reporting to the Commission already exist.
The Commission intends mirroring as far as possible the provisions established
by the Financial Services (Trust Company and Investment Business (Accounts,
Audits and Reports)) (Jersey) Order 2007. Approximately 70%
of banks are already subject to the TCB/IB Order, due to their being multi-licensed,
which should reduce the impact on industry.
According to the Commission, the proposals are intended to establish a basis
for introducing financial reporting provisions that are consistent with those
for other sectors of industry, and their coming into force will be dependent
upon the amending Law being adopted by the States and receiving the sanction
of Privy Council, the timescale for which is likely to be in the first half
of 2011.
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