JFSC Enforcement – you can NOW choose your reporting professional consultant

The JFSC will continue to name up to three pre-approved consultants in enforcement notices issued under the Financial Services (Jersey) Law 1998 (FSJL).

However, the GOOD NEWS is that Firms may now propose their own appointee, provided they demonstrate:

• Equivalent expertise to JFSC-nominated consultants.
• No material conflicts of interest.
• Prompt submission of the proposal.

The JFSC says

Source:

• JFSC Regulatory Consultants Seminar – Strengthening Collaboration (2024)
• https://www.jerseyfsc.org/news-and-events/strengthening-collaboration-insights-from-the-regulatory-CONSULTANTS-seminar/

Legal Basis

• The JFSC’s power to require appointment of an external professional at the firm’s expense derives from supervisory and investigative powers under the FSJL.

• Source: Consolidated FSJL (26 Feb 2024) https://www.jerseylaw.je/laws/current/PDFs/L_32_1998_20240226.pdf
• Clarification: JFSC cannot compel appointment under Article 32 alone; it does so via legally enforceable directions under Article 23.

JFSC ENFORCEMENT POLICY

Source: JFSC – Our Approach to Enforcement (2023) https://www.jerseyfsc.org/media/8105/our-approach-to-enforcement.pdf

• External reviews ensure independent assurance.
• JFSC prefers collaboration but imposes when required.
• Consultants are named publicly for transparency and deterrence.

JFSC sector-specific Codes (e.g., Trust Company Business, Investment Business) mandate:

• Full cooperation with investigations.
• Facilitation of independent reviews when directed.
• Prompt remediation under oversight.

Practical Triggers for External Appointment - JFSC typically mandates external reviewers when:

1. Breach of Codes = breach of registration → enforcement trigger.
2. Board/management conflict undermines internal credibility.
3. Compliance team lacks capacity or independence.
4. Complex forensic, AML/CFT, or governance issues require specialist skills.
5. Independent verification of remediation is needed before lifting restrictions.

Executive Summary

BOTTOM LINE:

• Material compliance gaps = mandatory independent review at your cost.

Your options:

• Accept one of JFSC’s three named consultants, OR
• Propose your own (with evidence of expertise + no conflicts). e.g. COMSURE WWW.COMSUREGROUP.COM

Non-compliance consequences:

• Civil penalties (up to 10 % revenue)
• Public censure
• Licence restrictions/revocation

KEY SOURCES  

• FS(J)L Article 23 (Directions): https://www.jerseylaw.je/laws/current/Pages/13.225.aspx#Art23
• Commission Law Article 21B (Penalties): https://www.jerseylaw.je/laws/current/l_11_1998#Art21B
• https://www.jerseyfsc.org/about-us/our-teams/enforcement/
• https://www.jerseyfsc.org/news-and-events/strengthening-collaboration-insights-from-the-regulatory-CONSULTANTS-seminar/

Related guidance and policy

• Decision-making process https://www.jerseyfsc.org/industry/guidance-and-policy/decision-making-process/
• Regulatory Settlements https://www.jerseyfsc.org/industry/guidance-and-policy/regulatory-settlements/
• Integrity and competence https://www.jerseyfsc.org/industry/guidance-and-policy/integrity-and-competence/
• Making a referral to the police and/or the Attorney General https://www.jerseyfsc.org/industry/guidance-and-policy/making-a-referral-to-the-police-and-or-the-attorney-general/
• Handbook on international co-operation and information exchange https://www.jerseyfsc.org/industry/international-co-operation/handbook-on-international-co-operation-and-information-exchange/
• Our approach to Enforcement https://www.jerseyfsc.org/industry/guidance-and-policy/our-approach-to-enforcement/

Civil financial penalties methodology - natural persons

• Civil financial penalties on natural persons - methods for determining the amount https://www.jerseyfsc.org/industry/guidance-and-policy/civil-financial-penalties-on-natural-persons/

Civil financial penalties methodology- registered persons

• Civil financial penalties on Registered Persons - methods for determining the amount https://www.jerseyfsc.org/industry/guidance-and-policy/civil-financial-penalties-on-registered-persons/