A draft Investment Business (Jersey) Law is expected to be submitted to the States of Jersey towards the end of this year. The Investment Business Law would be Jersey's equivalent to the UK Financial Services Act and would provide for the supervision of investment business and matters related thereto.
The Island's Finance and Economics Committee will be the body with whom registration under the Investment Business Law must be effected and the body charged with the duty to supervise those persons who are so registered.
The Investment Business Law will impose a general prohibition, in the absence of registration, on all persons carrying on investment business in or from within the Island and on Jersey companies and Jersey limited partnerships carrying on investment business in any part of the world.
The Investment Business Law will include a definition of 'investment business' so as to include within its ambit the carrying on of the following activities by way of business:
- dealing in investments, either as principal or agent;
- discretionary investment management;
- giving investment advice.
There will be certain exemptions, both from the requirement to register and from the definition of 'investment business'.
The Finance and Economics Committee will be granted wide powers of supervision under the Investment Business Law and penalties will be imposed on those who do not comply with the requirements of the legislation.
Zillah J Howard