Ask Mat – a regulatory question about director services and being regulated.

A regular question I’m asked at Comsure is something along the lines of:-

• I’m employed by ACME Trust Company Limited (ACME*), a JFSC-regulated Jersey trust company business, and
• As a senior employee of ACME, I am required to be a director of some of ACME's customers that are companies, and
• I want to check that I don’t need to be separately authorised/regulated under Proceeds of Crime (Jersey) Law 1999 [POCL] and/or the Financial Services (Jersey) Law 1998 [FSJL]  

In answering this question, my initial responses are:-

• You are not providing services to a THIRD-PARTY CUSTOMER as you are an employee of ACME; therefore, you do not need separate JFSC authorisation.

A slightly longer and wordier response is:-

• You do not need separate JFSC authorisation if you are not providing that TCSP service to a third party where:-
• YOU provide a TCSP service to another person

AND:

• That service is to:-
• Act as a director or secretary of a company, a partner of a partnership, or a similar position about other legal persons or arrangements (Schedule 2, Part 3, paragraph 23(2)(b)(i))
• But that service is NOT:-  
• Arranging for another person to act as a director or secretary of a company, a partner of a partnership, or a similar position about other legal persons or arrangements (Schedule 2, Part 3, paragraph 23(2)(b)(ii))

AND

• YOU ARE:-
• A SALARIED EMPLOYEE of the company, partnership, or other legal person or arrangement to which they provide the service in addition to their role as a director or secretary of the company, partner of the partnership, or a similar position with another legal person or arrangement or
• IS A SALARIED EMPLOYEE OF ACME, A REGISTERED TCSP that also provides the TCSP service of arranging for another person to act as a director or secretary of a company, a partner of a partnership, or a similar position with other legal persons or arrangements to the company.

IN SUPPORT OF THE ABOVE, MY SOURCE INFORMATION IS

• Proceeds of Crime (Jersey) Law 1999 [POCL]
• The Financial Services (Jersey) Law 1998 [FSJL] 
• SEE 2.4.9 / 2.4.4 IN  https://www.jerseyfsc.org/media/7787/guidelines-on-interpretation-reformatted-30-sept-24.pdf

*ACME – is a hypothetical name used for this case study