Acting as a director [NED] in Jersey, you are JFSC regulated – but to what degree?

In Jersey, if you are a director [NED] to third parties "as a business," you must be regulated and supervised by the JFSC.

However, the degree of JFSC regulation depends on the number of directorships [LESS/MORE THAN 6], as this drives what laws, rules and codes apply to the NED.

The following are the tests:-

• [6 OR LESS], As director of not more than x6 companies, you will be caught by
  • Schedule 2 to the Proceeds of Crime (Jersey) Law 1999 because of 23 (2)(b)(i)
    • 23 Trust and company service providers
    • (2) Director, secretary, partner, etc.
    • (b)(i) acting as, or fulfilling the function of, or arranging for another person to act as or fulfil the function of, director or alternate director of a company,
  • Guidelines on Schedule 2 [interpretation Article 36 of the Proceeds of Crime (Jersey) Law 1999] read here
    • https://www.jerseyfsc.org/media/6448/guidelines-on-interpretation-of-article-36.pdf
  • [MORE THAN 6], As director of more than x6 companies, you will be caught by
    • Schedule 2 to the Proceeds of Crime (Jersey) Law 1999 because of 23 (2)(b)(i) [as above]

AND

• Financial Services (Jersey) Law 1998 (the FS(J)L) because of 2(3)(b)(4)(b)
  • [2]“Financial service business" defined
  • (3)A person carries on trust company business if the person carries on a business that involves –
  • (b)the provision of trustee or fiduciary services;
  • (4)Those services are –
  • (b)    acting as or fulfilling the function of or arranging for another person to act as or fulfil the function of director or alternate director of a company;
• Natural persons undertaking the activity of acting as a director under the FS(J)L [AKA - Class G] guidance is here –
  • https://www.jerseyfsc.org/industry/guidance-and-policy/natural-persons-carrying-on-activity-of-director/

FS(J)L exception law is here

• The following provides an exception from Financial Services (Jersey) Law 1998 (the FS(J)L)

FINANCIAL SERVICES (TRUST COMPANY BUSINESS (EXEMPTIONS)) (JERSEY) ORDER 2000

• = https://www.jerseylaw.je/laws/current/PDFs/13.225.55.pdf

Director or manager

1. A person, when acting as or fulfilling the function of a director of a company or a manager of a limited liability company, if in relation to that company or limited liability company – (a) the person has neither entered into a contract for services, nor is party to an arrangement for the provision of services, with a registered person or a person carrying on trust company business in any part of the world;
   • the majority of the board of directors of the company or managers of the limited liability company is not provided by a registered person or a person carrying on trust company business in any part of the world; and
   • the person does not hold himself or herself out as carrying on a business or profession in any part of the world the sole or main purpose of which is trust company business.
2. An individual, when acting or fulfilling the function of a director of a company or a manager of a limited liability company, if the individual, in or from within Jersey, acts as or fulfils the function of director or manager of NOT MORE THAN 6 COMPANIES or limited liability companies (including the first-mentioned company or limited liability company).
3. For the purposes of sub-paragraph (2), when determining the number of companies or limited liability companies, no account shall be taken of the Financial Services (Trust Company Business (Exemptions)) (Jersey) Order 2000 SCHEDULE individual's acting as, or fulfilling the function of, a director of a company or manager of a limited liability company when, in relation to the full extent of the individual's so acting or so fulfilling the function, the individual is the subject of an exemption under any one or more of the provisions of the following enactments –
   • sub-paragraph (1);
   • paragraph 15;
   • any other paragraph of this Schedule;
   • the Financial Services (Trust Company Business (Exemptions No. 2)) (Jersey) Order 2000;
   • the Financial Services (Trust Company Business (Exemptions No. 3)) (Jersey) Order 2001;
   • the Financial Services (Trust Company Business (Exemptions No. 4)) (Jersey) Order 2001;
   • the Financial Services (Trust Company Business (Exemptions No. 5)) (Jersey) Order 2001;
   • the Financial Services (Trust Company Business (Exemptions No. 6)) (Jersey) Order 2001;
   • the Financial Services (Trust Company Business (Exemptions No. 7)) (Jersey) Order 2001.

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