JFSC findings [29 March 2021] following JPF Designated Service Provider (DSP) thematic review
- In April 2017, the Jersey Financial Services Commission (JFSC) issued the Jersey Private Fund Guide (JPF Guide).
- Further guidance on the JPF Return was published in June 2020.
- Central to the regulatory and Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) requirements of the JPF Guide is the role of a Designated Service Provider (DSP).
- The DSP is a full substance Registered Person holding specified business classes under the Financial Services (Jersey) Law 1998 (FSJL).
- Paragraph 6 of part G of the JPF Guide sets out the DSP’s responsibility for some duties in relation to the relevant JPF. These duties include:
- Making all reasonable enquiry, to ensure that the JPF meets all of the eligibility criteria referred to under part D of the JPF Guide, both on its establishment and, continuingly;
- Ensuring that all necessary due diligence on the JPF and its promoter is carried out and ensuring the promoter of the JPF has put in place appropriate measures to ensure that all service providers to the JPF are fit and proper and can fulfil the tasks in a responsible, professional and suitable manner;
- Ensuring compliance with all necessary Jersey AML/CFT requirements applicable to the JPF;
- Completing and submitting the JPF application form and declaring in its capacity as DSP to the JPF and having made all reasonable enquiry that the information provided in the JPF application form “is complete, true and accurate” to the best of the DSP’s knowledge and belief;
- Completing and filing a notice of material changes and notifying of specific incidences of non-compliance; and
- Completing and filing a JPF Annual Compliance Return (the JPF Return), including declarations made by the DSP regarding the JPF’s ongoing compliance.
Testing the above - 29 March 2021
- The JFSC identified several areas of concern following a thematic examination of the Designated Service Provider (DSP) role regarding Jersey Private Funds (JPFs).
- Read the report –
JFSC findings [29 March 2021] following JPF Designated Service Provider (DSP) thematic review report
- In this report, the JFSC say
- There were instances where the JPF annual compliance return was filed confirming that JPFs were compliant with all necessary Jersey AML/CFT requirements when THIS WAS NOT the case.
- The JFSC also found that in some cases, the DSPs DIDN’T HAVE EFFECTIVE SYSTEMS AND CONTROLS in place to be able to give the required declarations.
- In total, there were 23 findings identified across the six DSPs. These findings related to:
- Internal systems and controls
- The JPF annual compliance return
- Director services
- Customer due diligence
- Compliance reporting.
- The DSPs acknowledged their deficiencies and, in most cases, had already started remediation.
As with all examinations,
- examined businesses were required to produce and submit to the JFSC a remediation plan designed to address the findings identified.
- will take these plans into consideration when deliberating the appropriate next steps.
- Has already committed to undertaking a review of the JPF Guide; the results of this thematic examination will inform this work.
Jersey Private Fund thematic review webinar
- On 20 April, the JFSC is hosting a webinar where the JFSC will discuss these findings in more detail.
- You can find out more about the session and sign up here.
Meet the team of industry experts behind ComsureFind out more
Keep up to date with the very latest news from ComsureFind out more
View our latest imagery from our news and workFind out more
Think we can help you and your business? Chat to us todayGet In Touch
As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email email@example.com.