JFSC expectations of a senior manager's responsibilities and accountabilities

The Jersey Financial Services Commission (JFSC) has outlined specific expectations for an individual’s (“Senior Individual) responsibilities and accountabilities within a registered/supervised person.

These Senior managers' functions involve managing significant aspects of a registered/supervised person’s affairs, which could seriously affect the firm or Jersey’s business interests.

For example, the JFSC MSB Code [the other codes (TCB/INV BUS, etc) follow the same wording) requires the:-

1. 3.1.1. - A registered person must operate an effective CORPORATE GOVERNANCE system that must include the following key elements
• 3.1.1.2 - Apportionment of responsibilities so that an individual’s responsibilities and accountabilities are clear.

Further, Senior managers [including directors] are expected to ensure that their areas of responsibility comply with regulatory requirements in:-

• The codes of conduct for corporate governance conduct of business, prudential matters, and
• The Money Laundering Jersey Oder and the codes for AML/CTF/CPF

In support of the above, the JFSC has designated specific roles as “senior management functions” under:-

• Article 1(1) of the Financial Services Commission (Jersey) Law 1998.

Furthermore, the JFSC categorises senior management functions into different levels based on their responsibilities and influence within the firm.

• These categories help firms determine which roles fall under the senior management function designation.

Concerning senior management functions the JFSC expectations, the JFSC says:-

1. Senior Management Function Mapping
• Registered persons should identify which of their employees they consider to fall into one of the four categories of senior management function and notify those employees accordingly. 
2. Identification and Notification:
• Firms must identify which employees perform senior management functions and notify these employees accordingly.
• However, firms are not required to send these details to the JFSC unless specifically requested
3. Compliance and Accountability:
• Senior managers are expected to ensure that their areas of responsibility comply with regulatory requirements, including anti-money laundering (AML), countering the financing of terrorism (CFT), and countering proliferation financing (CPF) obligations
4. Governance and Risk Management:
• Firms must have robust governance structures and risk management frameworks in place.
• Senior managers should demonstrate effective oversight and control over their areas of responsibility.
5. Training and Competence:
• Firms should ensure senior managers have the necessary skills, knowledge, and experience to perform their roles effectively.
• This includes ongoing training and development to keep up with regulatory changes.
6. Documentation and Reporting:
• Firms must maintain accurate records of decisions and actions taken by senior managers.
• This documentation should be readily available for review by the JFSC if required.

CONCLUSION

• By adhering to these expectations, firms can ensure they meet regulatory standards and maintain the integrity of Jersey’s financial services industry.

HELP

• If you have any questions or need further details, please get in touch with Comsure @ yes@comsuregroup.com OR DM Mathew Beale @ mathew@comsuregroup.com

SOURCE: 

1. Notice designating “senior management functions”. https://www.jerseyfsc.org/media/6333/notice-issued-under-article-1-1-of-the-financial-services-commission-jersey-law-1998-designating-senior-management-functions.pdf.
2. Notice designating “senior management functions” published. https://www.jerseyfsc.org/news-and-events/notice-designating-senior-management-functions-published/.
3. https://www.jerseyfsc.org/media/5868/cop-money-service-business-code-of-practice.pdf