ASK MAT – I have been asked to be a trustee of a friend's assets, and they are sadly dying. Will I need to be supervised by the JFSC?

ASK MAT –

I have been asked to be a trustee of a friend's assets, and they are sadly dying. Will I need to be supervised by the JFSC?

MAT SAYS:-

I am sorry to hear about your friend. Times are clearly difficult, and your friend's affairs must be arranged soon.  I hope I can provide you with some answers as follows.

If you are acting as a trustee in a personal capacity for a friend's assets, you generally do not need to be supervised by the Jersey Financial Services Commission (JFSC).

Here are some key points to consider:

1. Personal Capacity: Acting as a trustee in a personal capacity means you are not providing trustee services as a business. This typically involves managing the trust without charging fees and not offering your services to the public.
2. Regulatory Exemption: Non-professional trustees are generally exempt from registration with the JFSC. This exemption recognizes that personal trusteeship is not a commercial activity and does not require the same level of regulatory oversight as professional trustee services.
3. Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016: NPTO - This Order outlines specific responsibilities for non-professional trustees, including maintaining accurate records and reporting suspicious activities.
4. Compliance Obligations: Even though you may not need to register, you must still comply with relevant legal and fiduciary duties. This includes managing the trust assets responsibly, acting in the best interests of the beneficiaries, adhering to anti-money laundering (AML) regulations, and countering the financing of terrorism (CFT) rules (see three above re NPTO)

To support the key points above

When you act as a trustee personally and do not conduct business, there are some exemptions:

• In Jersey, individuals acting as trustees in a personal capacity are generally exempt from the requirement to register with the Jersey Financial Services Commission (JFSC).
• This exemption recognises that personal trusteeship is not commercial and therefore does not fall under the same regulatory scrutiny as professional trustee services.

The Proceeds of Crime (Duties of Non-Professional Trustees) (Jersey) Order 2016  [NPTO]

• Applies to a natural person –
• (a) who is acting as a trustee of an express trust (as defined by Article 1(1) of the Financial Services (Jersey) Law 1998); but
• (b) whose activity is not conducted as a business.
• Outlines the responsibilities of non-professional trustees in Jersey, particularly concerning anti-money laundering (AML) and countering the financing of terrorism (CFT).
• https://www.jerseylaw.je/laws/current/PDFs/RO_100_2016.pdf

The NPTO was designed to cater for

• Family/private arrangements around wealth management, inheritance, asset protection, where the trustees are not receiving  fees/remuneration for the trust, and
• Where higher risk factors (PEPS, high-risk countries, investments) are usually absent.

Here are the key points:

• Application: This Order applies to natural persons acting as trustees of express trusts, but not conducting these activities as a business
• AML and CFT Compliance: Non-professional trustees must comply with specific provisions of the Money Laundering (Jersey) Order 2008. This includes identifying and verifying the identity of the settlor, protector, beneficiaries, and any person exercising control over the trust
• Record-Keeping: Trustees are required to maintain accurate records of the trust's transactions and the identities of relevant parties to ensure transparency and compliance with AML and CFT regulations
• Reporting Obligations: Trustees must report any suspicious activities that may indicate money laundering or terrorist financing to the relevant authorities

Also see JFSC guidance

• https://www.jerseyfsc.org/media/6631/ptc-family-office-faqs.pdf

Also

https://www.jerseyfsc.org/media/7104/guidelines-on-interpretation-031023.pdf

It's always a good idea to seek professional advice to ensure you fully understand your responsibilities and any potential regulatory requirements.

PLEASE DO CALL ME

• Mathew Beale - Chartered FCSI
• Principal & Director - Comsure Compliance Limited, Comsure Technology Limited, Comsure Mauritius (the "Comsure Group of Companies")
• mathewbeale@comsuregroup.com
• www.comsuregroup.com     
• T (Jersey) +44 1534 733-588 /+44 7797 747-490