The JFSC Registry 1ST QTR [1 January to 31 March] inspection feedback paper is available

The JFSCs Registry Supervision Quarterly inspection programme feedback paper – 1 January to 31 March has been published.

The JFSC paper gives a detailed response from the JFSCs Registry Supervision team’s inspections of entities in Q1 2024.

Some of the inaccuracies the JFSC found included:

1. Difficulties associated with recording joint ownership of shares correctly.
2. Failure to disclose the individuals who control a corporate trustee, if not JFSC regulated
3. Structure charts:-
• Do not clearly outline the ownership structure or
• Provide sufficient details about the individuals or entities with significant ownership interests and control.

Some of the examples of good practice the JFSC found included:

1. Having a comprehensive pre-inspection readiness plan
2. Comprehensive documentation of trust structures, ownership, and control information in place - which usually leads to fewer findings.
3. Using the myParties features in the myRegistry platform, which ensures that users only must enter the details in relation to associated parties once.

Inspection programme for the remainder of 2024 Collaboration with JFSC TCSP examinations:

1. The JFSC Supervision manager will offer the option to the TCSP of whether they would like the inspections to be carried out jointly or separately.
2. Registry Supervision will:-
• Select between 100-200 entities linked to the TCSP for inspection. The timeframe for the inspections will vary depending on the number of entities selected.
• Collaborate with the JFSC Supervision division so that examinations and inspections are held concurrently.
• Provide TCSPs the option of its Registry Supervision team attending their offices in person or sending the documentation for review electronically.
3. Depending on the duration of the inspection, three face-to-face meetings will be held:

• An opening meeting,
• A mid-week meeting, and
• A close out meeting.

4.Registry Supervision criteria during 2024 will be concentrating on:

• High Risk indicators
• Politically Exposed Persons
• The JFSC will also continue to focus on entities which do not have a TCSP connection, in particular:

› Multiple non-TCSP connected entities using the same registered office address.

› Entities for which the location or number of beneficial owners/ members/ significant persons do not appear to fit with the nature of the activity.

› Where the same non-TCSP nominated person is providing services to a high number of entities › entities previously subject to queries which may have triggered a higher risk profile.

• › Previous history of late/non-compliance with statutory obligations
• › Entities with directors who act as directors on several other entities.

5. The JFSC will review public entities to ensure compliance in respect of shareholders, directors, filings and audited annual reports/accounts.

TCSP visit feedback.

1. The JFSC note from the TCSPs they inspected.
• Records were well maintained and
• That they had provided an up-to-date record of beneficial ownership information on the central register.
• TCSPs clearly defined and identified beneficial owners and controllers in alignment with the guidance, and demonstrated a thorough understanding of who qualifies as a beneficial owner or controller.
2. By following good practice, entities can enhance their compliance with ownership and control disclosure requirements, promote transparency, and maintain the trust of stakeholders.

In the conclusion the JFSC state

1. The JFSC expect the findings from their report to be shared and to inform entities and related associated parties of the common pitfalls.
2. Each entity should make its own arrangements to ensure compliance with statutory requirements and by doing so can avoid these known pitfalls.
3. This quarter, entities have filed their Annual Confirmation Statements. This has led to fewer findings by the Examination Officers than previous quarters, as the data has recently been checked and confirmed to be accurate in accordance with Article 5(1) of the Law.

Warning

1. The JFSC state where breaches have occurred in relation to any law, the Registrar may refer the case to the Attorney General for a decision on whether to prosecute.

Read the paper here:

https://www.jerseyfsc.org/media/7556/registry-supervision-inspection-programme-q1-2024.pdf

Source

https://www.jerseyfsc.org/news-and-events/read-the JFSCs-q1-registry-supervision-inspection-programme-feedback/