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Banking Business (General Provisions) (Amendment No. 4) (Jersey) Order 2016

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 18 August 2016:

MINISTERIAL DECISION REFERENCE:    MD-C-2016-0096

DECISION SUMMARY TITLE:  Banking Business (General Provisions) (Amendment No.4) (Jersey) Order 2016

DECISION SUMMARY AUTHOR:

Lead Policy Adviser, Financial Crime and Private Wealth

IS THE DECISION SUMMARY PUBLIC OR EXEMPT?  

Public

REPORT TITLE:  Written Report - Banking Business (General Provisions) (Amendment No.4) (Jersey) Order 2016

REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:  (if different from Decision  Summary Author)

Lead Policy Adviser, Financial Crime and Private Wealth

IS THE REPORT PUBLIC OR EXEMPT 

Public

DECISION AND REASON FOR THE DECISION:

The Assistant Chief Minister made the Banking Business (General Provisions) (Amendment No.4) (Jersey) Order 2016 (the “Order”).

 

Removal of the requirement for an annual application for registration

 

  1. The Financial Regulation (Miscellaneous Provision No. 4) (Jersey) Law 201- (the “Law”), was registered in the Royal Court on 22 July 2016 and will come into force on 22 August 2016. The Law will (inter alia) delete Article 9(2) of the Banking Business (Jersey) Law 1991 (“BBJL”).

 

  1. Article 9(2) of the BBJL presently provides that the registration of every bank shall expire on 31 January of each year.

 

  1. As a consequence of the deletion of Article 9(2) of the BBJL, paragraph (2) of Article 9 of the Banking Business (General Provisions) (Jersey) Order 2002 (the “Banking GPO”) needs to be deleted. The paragraph will no longer be relevant given that annual re-registration will not be required once the Law is in force. (The paragraph states that:-

 

(2)     [An] application shall be made 

(a)     if the person is not registered under the Law at the time when the application is made, before the person carries on or holds himself or herself out as carrying on a deposit-taking business; or

(b)     if the person is already registered under the Law when the application is made, during October in each year.”)

 

Removal of the requirement to refund annual fee

 

  1. Currently, a bank pays an annual fee at the time that it applies for re-registration pursuant to paragraph (2) of Article 9 of the Banking GPO.

 

  1. Article 10 of the Banking GPO requires the JFSC to refund the annual fee if the bank’s application is refused or withdrawn before it is granted or refused.

 

  1. Article 10 will become redundant when the requirement for annual re-registration is (effectively) removed by the deletion of Article 9(2) of the BBJL. Accordingly, Article 10 of the Banking GPO is deleted by the draft Order.

 

 

RESOURCE IMPLICATIONS:

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

ACTION REQUIRED:

That the Assistant Minister sign and seal the Order and it be returned to the States Greffe for immediate publication.

 

SIGNATURE:

 

 

SENATOR PHILLIP OZOUF

POSITION:

 

 

ASSISTANT CHIEF MINISTER

 

 

DATE SIGNED

EFFECTIVE DATE OF THE DECISION

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