THE Jersey Financial Services Commission (JFSC) speak at a JERSEY CPD event

At a recent Ogier Jersey event, JFSC Executive Director of Enforcement Kerry Petulla and JFSC Executive Director of Supervision David Eacott joined Ogier Regulatory Consulting to offer some insights on enforcement and supervision, focusing on the use of intelligence, the type of cases they are investigating, and key risk areas for supervisory focus.

KEY TOPICS INCLUDED AT THE EVENT WERE:-

1. Cyber risk and resilience
2. Supervisory visits
3. Outsourcing risk is being revisited
4. Enforcement does not regard remediation as a significant mitigating factor
5. Enforcement is working on 36 cases.
6. Supervision and Enforcement are intelligence-led

DURING THE SEMINAR, THE JFSC AND OGIER REPRESENTATIVES:-

1. Provided a comprehensive overview of the shifting regulatory environment and the critical need for businesses to adapt and innovate to stay ahead in a rapidly changing world
2. Highlighted the dynamic nature of risk management and oversight in the current landscape, with global threats demanding vigilant cybersecurity measures, swift responses to sanctions and other challenges
3. Explored how the integration of artificial intelligence (AI) tools into supervisory processes signifies a transformative move towards more efficient and regulatory oversight
4. Discussed evolving perspectives on outsourcing risk and enforcement approaches, with increased attention on personal accountability and intelligence-led strategies

IN ADDITION, THE JFSC TEAM HIGHLIGHTED THE FOLLOWING ISSUES:-

7. Cyber risk and resilience
   1. Because organised crime and rogue states using an arsenal of cyber weapons significantly increased risk globally, David Eacott noted cyber risk and resilience as a key risk area for businesses and one that the JFSC focuses on.
8. Supervisory visits
   1. While checking policies and procedures is essential, AI tools could greatly assist regulators with these administrative tasks. David Eacott noted that the JFSC's Supervision team are developing AI tools to help them with supervisory visits, which should speed up processes.
9. Outsourcing risk is being revisited
   1. Feedback on the Compliance function revealed that 55% of respondents preferred maintaining the status quo (retaining employment and residency requirements for Key Persons).
   2. The JFSC acknowledged that this outcome was not anticipated and observed. If this question had been posed three years ago, there would, in their view, have been a different outcome.
   3. Also noted, following increased consolidation and more individuals forging careers in risk and compliance, there has been less pressure on compliance resources.
10. Enforcement does not regard remediation as a significant mitigating factor
    1. Kerry Petulla
       1. Explained that remediation reveals whether a business has been operating as it should.
       2. Confirmed that:-
          • Self-identification and remediation alone would not, as was previously the case,
          • Result in an entity avoiding enforcement action or
          • Being considered a mitigant to the level of enforcement sanction.
       3. However, the following would now be a key factor
          1. Self-reporting and
          2. The entity's regulatory track record.
    2. Suggested the JFCS approach was a divergence from the approach taken by some other regulators, such as the Department of Justice in the US, in ABB Ltd
       1. ABB Ltd., a Swiss-based global technology company, faced significant legal issues with the U.S. Department of Justice (DOJ) due to violations of the Foreign Corrupt Practices Act (FCPA). In December 2022, ABB agreed to pay over $315 million to resolve a coordinated global foreign bribery case.
       2. The case involved bribery of a high-ranking official at South Africa's state-owned energy company to obtain confidential information and win lucrative contracts.
       3. ABB entered into a three-year deferred prosecution agreement (DPA) with the DOJ, acknowledging responsibility for the actions of its officers, directors, employees, and agents.
       4. The company demonstrated extensive remediation efforts, including conducting a root-cause analysis of the misconduct, investing in compliance personnel, and enhancing its compliance program and internal controls. ABB's commitment to remediation also involved quarterly meetings with the DOJ and yearly reports on the status of its compliance program.
       5. This resolution reflects the DOJ's thoughtful approach to balancing ABB's cooperation, remediation efforts, and historical misconduct.
    3. READ:- Office of Public Affairs - United States Department of Justice https://www.justice.gov/archives/opa/pr/abb-agrees-pay-over-315-million-resolve-coordinated-global-foreign-bribery-case 
    4. Learn more in this summary from the Compliance Podcast Network - https://compliancepodcastnetwork.net/abb-fcpa-resolution-part-5-a-win-for-compliance/
    5. Highlighted more generally, where robust remediation is considered a mitigating factor. However, this reflects a mature regulatory environment, which includes excellent compliance resources and personnel available to firms, so they should already have robust programmes.

11. Enforcement is working on 36 cases.
    1. Kerry Petulla
       1. Explained that the JFSC focuses on conduct issues post-MONEYVAL.
       2. As a result, many of these cases relate to investigations into FITNESS AND PROBITY, focusing on personal behaviours, including the financial well-being of principal persons.

12. Supervision and Enforcement are intelligence-led
    1. Kerry Petulla
       1. Reinforced that submitting a Suspicious Activity Report to the Financial Intelligence Unit was not equivalent to speaking to Supervision or Enforcement
       2. Emphasised the increasing importance of intelligence to the regulator and the steps now being taken to develop further the intelligence received.
       3. Highlighted the increasing importance that the JFSC places on intelligence, which is reflected in the statistics presented in its Annual Report for 2024. These statistics reveal
          • 1,373 pieces of information were received by intelligence,
          • 54 whistleblowing calls were received,
          • 520 intelligence reports were disseminated and
          • 108 external shares of intelligence were made to 14 different jurisdictions.

SOURCES

Following the Ogier event, Ogier issues the following publicly available decommitment = https://www.ogier.com/news-and-insights/insights/the-jersey-view-intelligence-and-tech-high-on-regulatory-agenda/

The JFSC has not published anything on the above; for example, the last presentation published is in 2024

https://www.jerseyfsc.org/publications/presentations/

THE FOLLOWING SHOWS EVENT UP TO JUNE 2025