The JFSC 2023 annual report is out

In the enforcement section [pg.46] the JFSC highlights a significant trend in cases investigated by its Enforcement team.

The enforcement trends identified are:

• A lack of risk understanding,
• Poor corporate governance and
• Inadequate board or senior management oversight.

The JFSC close the report by saying:-

• The year ahead The MONEYVAL evaluation outcome is clearly a significant consideration for the JFSC in 2024.
• Operationally we are prepared, and our team will respond with flexibility and purpose to the outcome. The regulatory landscape is always developing.
• We will continue to track emerging developments and standards, including in artificial intelligence and digital assets, and will respond in a manner relevant to Jersey.
• We will also continue our work in combatting financial crime and embedding the significant regulatory changes we’ve seen over the past two years.
• We will continue to support Government in their work to regulate consumer lending, alongside bringing our regulatory framework and the supervision of banks in line with the appropriate components of the Basel III standards.
• Sustainable finance is firmly on the agenda, and we will respond to the future Government roadmap appropriately with a multi-year plan.
• Enhancement to our own technology and digital interface with industry and other stakeholders remains a key priority.
• We will continue to provide guidance to industry on the adoption of technology solutions which support ongoing compliance with regulatory requirements.
• The security of our own systems is of course a key priority and, following the Registry vulnerability issue identified in January 2024, we will be working to ensure we understand how the vulnerability came about, and taking forward any recommendations arising from a third party review.
• We will also be concluding an independent fee review with industry, welcoming feedback and recommendations as we balance the need for continuous improvement to support the needs of industry and the JFSC, with the need to be competitive in our fees structure.
• To ensure regulatory effectiveness, it’s essential we have sufficient resources and capabilities to deliver both our strategy and our core, business-as-usual functions.

Read more: JFSC 2023 Annual Report - https://www.jerseyfsc.org/media/7646/jfsc-2023-annual-report.pdf