The JFSC has issued guidance for Jersey Registered Persons and financial stability

https://www.jerseyfsc.org/news-and-events/registered-persons-and-financial-stability/

The guidance is as follows

Introduction

1. Many businesses will be facing increased financial pressure as a result of the COVID-19 pandemic.
2. Registered Persons must be aware of the financial pressures affecting their business, and increased financial monitoring should become an integral part of their governance procedures.
3. The JFSC  expect all Registered Persons
   1. To be able to demonstrate that due consideration is given to the financial position of the business and its client entities, AND
   2. In the event of financial difficulties, the Registered Person engages at the earliest opportunity with their Supervisor.
4. The JFSC expectations:
   • Regular full board meetings are held considering the Registered Person’s financial position.
     1. And these are accurately documented in full detail
   • Asset values in the prevailing market conditions are considered regularly, and this applies to the
     1. Assets of a Registered Person
     2. In addition to any assets held in client companies or trusts
   • The strength and documentation of any financial guarantees that support the business are regularly checked and minuted
   • Directors and Trustees review whether they are sufficiently skilled to opine on financial risks and solvency and, if not, consider seeking appropriate independent advice.
     1. Alternatively, the board should include a member who is adequately experienced to contribute to these matters
   • Robust procedures for the management of client assets, for
     1. Reconciling movements in client assets, and
     2. For guarding against involvement in financial crime are maintained.
   • The JFSC stress the importance of an open and honest dialogue between a Registered Person and their Supervisor.
   • The JFSC expect in advance of any of the following to be informed by a Registered Person:
     1. Breach of the Registered Person’s ANLA requirements
     2. Appointment of legal advisers to advise on a restructuring of the Registered Person
     3. Documented concerns about the solvency of
        • The Registered Person or
        • A client entity.                         
     4. Failure on the part of a Registered Person to comply with the Code of Practice about governance obligations could render the Registered Person and/or a Principal Person liable
        • To sanction by the JFSC and/or
        • Liability for wrongful or fraudulent trading.

https://www.jerseyfsc.org/news-and-events/registered-persons-and-financial-stability/