Arranging in Jersey - sophisticated and high net worth investors out of the scope of the legislative changes.
11/09/2023
The proposed Draft Financial Services (Amendment of Law) (No. 6) (Jersey) Regulations 202- exempt sophisticated and high net worth investors from the scope of the legislative changes.
the reasoning behind this, was that whilst the intent of the MiFID II rules on
‘arranging’ are good for consumer protection and avoiding harmful practices arising in the retail investment market; they are not as necessary or appropriate for the private arrangements made between financially sophisticated or expert investors.
The Assistant Chief Minister has indicated that sophisticated and high net-worth persons are more commercially sophisticated and capable of assessing for themselves or paying for advice, to determine the appropriateness of such recommendations or introductions. As such, they are not as susceptible to the consumer harms which arise from unregulated arranging whilst also being able to bear the financial loss if the investment goes wrong.
Also, the Assistant Chief Minister indicated that this would also be the case for
informal, unpaid recommendations or introductions made by friends or business colleagues in the ordinary course of life and business.
The https://statesassembly.gov.je/assemblypropositions/2023/p.54-2023%20com.pdf were presented to the States on 16 August 2023 by the Economic and International Affairs Scrutiny Panel.
https://statesassembly.gov.je/assemblypropositions/2023/p.54-2023%20com.pdf
The proposed Amendments exempt sophisticated and high net-worth investors from the scope of the legislative changes as well as informal unpaid recommendations or introductions made by friends or business colleagues in the ordinary course of life and business.
More detailed explanations for the reasoning behind these exclusions their impact on the Moneyval assessment and industry engagement are provided
- https://statesassembly.gov.je/assemblypropositions/2023/p.54-2023%20com.pdf. https://statesassembly.gov.je/assemblypropositions/2023/p.54-2023%20com.pdf
The Panel is satisfied that the industry supports the proposed Amendments and will provide proportionately enhanced regulation in Jersey’s Investment Business regime.
Source
p.54-2023%20com.pdf%20(gov.je) https://statesassembly.gov.je/assemblypropositions/2023/p.54-2023%20com.pdf
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.