JFSC Industry update - 19 July 2021 - Revised policy on trading carbon credits and cannabis activities
The JFSC has updated its Sound Business Practice Policy (previously known as the sensitive activity policy) following a change in legislation by the States of Jersey.
The changes relate to businesses wanting
- to trade carbon credits or
- undertake cannabis activities.
Trading carbon credits
- Trading carbon credits has been listed as a sensitive activity. This means that we will ask for additional information from businesses that want to trade carbon credits before we grant COBO consent.
- The JFSC has also specified that companies wanting to trade carbon credits must also appoint a Jersey trust company business to administer it if the ultimate beneficial owner of the business is not resident in Jersey.
- Cannabis activities include the cultivation, production, supply, use, export or import of cannabis or any of its derivatives.
- Cannabis activities were already listed as a sensitive activity, but the JFSC has changed the policy to make it clearer that it is more likely to grant consent if the activities:
- Are legal when and where they take place
- Take place in a jurisdiction that the Government of Jersey has provided an exemption for.
The policy explains its approach for granting Control of Borrowing consents (COBO consents) which give permission to do business in Jersey.
In the following short update, Jon Stevens, Head of Policy, provides more information on the Sound Business Practice policy, including how and why it is used.
Read the updated Sound Business Practice Policy.