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Financial Services (Investment Business (Qualifying Segregated Managed Accounts - Exemption)) (Jersey) Order 2014

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 25 November 2014:

Decision Reference: MD-C-2014-0186

Decision Summary Title :

Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 201-

Date of Decision Summary:

21 November 2014

Decision Summary Author:

 

Financial Services Unit

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 201-

Date of Written Report:

21 November 2014

Written Report Author:

Financial Services Unit

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Making of the draft Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 201-.

Decision(s):

The Chief Minister made the Financial Services (Investment Business (Qualifying Segregated Managed Accounts – Exemption)) (Jersey) Order 201- (the “draft Order”).

Reason(s) for Decision:

Pursuant to the Financial Services (Jersey) Law 1998, as amended (“FS(J)L”) parties are required to be licensed/registered by the Financial Services Commission (the “Commission”) in order to conduct financial services business, of which there are several distinct types as referred to in Article 2(1) of FS(J)L.  In particular, the undertaking of segregated managed account work requires an operator to be licensed/registered to conduct investment business (“IB”) pursuant to Article 2(2) of FS(J)L.

 

The draft Order exempts an operator of a qualifying segregated managed account from the requirement to be IB-licensed in respect of discretionary investment management (as set out in Article 2(2) of FS(J)L), subject to satisfaction of carefully prescribed provisions, including that the operator must be a hedge fund manager that is authorised to conduct fund services business under FS(J)L as either a manager, investment manager, trustee or general partner.  The draft Order preserves certain supervision and enforcement powers under FS(J)L in respect of the given activity. 

 

The policy as detailed in the draft Order has been subject to consultation with the industry by the Commission.  The responses received demonstrate a strong degree of support for the policy contained in the draft Order. The majority of questions posed in the consultation received unanimous consent. 

 

The Jersey Financial Services Commission has provided its recommendation to the Minister that the draft Order be made.

 

Resource Implications:

 

There are no resource implications for the States of Jersey as a result of this decision. 

 

Action required:

 

That the Minister sign and seal the draft Order and it be returned to the States Greffe for immediate publication. The Greffier of the States to be requested to arrange for the making of the Order to be notified to the States.

Signature:

 

 

 

 

Senator I. J. Gorst

Position:

 

 

 

 

Chief Minister

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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